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4-Star Dividend Stocks Set to Keep Soaring: Homeowners Choice

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, property and casualty insurer Homeowners Choice (Nasdaq: HCII  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Homeowners Choice and see what CAPS investors are saying about the stock right now.

Homeowners Choice facts

Headquarters (founded)

Tampa, Fla. (2006)

Market Cap

$227.1 million

Industry

Property and casualty insurance

Trailing-12-Month Revenue

$136.7 million

Management

Co-Founder/Chairman/CEO Paresh Patel
CFO Richard Allen

Return on Equity (average, past 3 years)

15.8%

Cash / Debt

$131.1 million / $0

Dividend Yield

3.3%

Competitors

Allstate
Universal Insurance Holdings (NYSE: UVE  )

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 99% of the 71 members who have rated Homeowners Choice believe the stock will outperform the S&P 500 going forward.

Just last month, one of those Fools, djohn1969, succinctly summed up the bull case for our community:

Homeowners Choice is an extremely fast growing property and casualty insurance company in Florida. Despite the fact that the stock has more than tripled in the past 12 months, HCII still has plenty more room to grow. The stock pays a solid 3.5% dividend yield and the payout ratio is only about 20% so there is plenty of room to grow the dividend too. The naysayers who are not willing to do the homework to find the facts argue that a hurricane would significantly harm earnings, but the fact is that the company's liabilities are very limited by reinsurance.

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Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (1) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On October 22, 2012, at 6:35 PM, djohn1969 wrote:

    Thanks for considering my pitch worth sharing. For those looking to open a position with HCII, keep in mind that it trades with the hurricane forecasts. In other words, you'll get the best entry price when a hurricane has Florida in its path since that always turns some holders into panic sellers. Hurricane activity typically peaks in the last few months of the season, but the season ends November 30 and this has been a very very calm season so far (I happen to be a Floridian too).

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5/24/2013 4:05 PM
HCI $33.09 Down -0.45 -1.34%
Homeowners Choice,… CAPS Rating: ****

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