Why Safety Insurance Is Poised to Keep Poppin'

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 Safety Insurance Group (NASDAQ: SAFT  ) has earned a coveted five-star ranking.

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

Safety Insurance facts

Headquarters (founded)

Boston (1979)

Market Cap

$753.3 million

Industry

Property and casualty insurance

Trailing-12-Month Revenue

$703.9 million

Management

CEO David Brussard (since 2001)
CFO William Begley Jr. (since 1999)

Return on Equity (average, past 3 years)

6.5%

Cash / Debt

$35.4 million / $0

Dividend Yield

4.9%

Competitors

Arbella Mutual Insurance
Liberty Mutual Holding
MAPFRE U.S.A.

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

On CAPS, 98% of the 507 members who have rated Safety Insurance believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, JohnStuartMill, tapped Safety Insurance as an income opportunity worth considering:

The 58% payout ratio has me a bit worried, but is due to the recent big storm hit. The 4.9% [dividend yield] could possibly be a short term high. I would buy in here with no expectations of an increase in the dividend rate in the near future. In fact, if the dividend were further increased, it would worry me.

With so much of the financial industry getting bad press these days, it may be a greedy when others are fearful moment. Not surprisingly, some of Warren Buffett's biggest investments are in the space. In the Motley Fool's free report, "The Stocks Only the Smartest Investors Are Buying," you can learn about a small, under-the-radar financial that's too tiny for Buffett's billions. Too bad, because it has better operating metrics than his favorites. Just click here to keep reading.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.


Read/Post Comments (0) | Recommend This Article (0)

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.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2339937, ~/Articles/ArticleHandler.aspx, 9/19/2014 3:58:42 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement