Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, property and casualty insurer Cincinnati Financial (Nasdaq: CINF ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Cincinnati Financial's business and see what CAPS investors are saying about the stock right now.
Cincinnati Financial facts
|
Headquarters (Founded)
|
Fairfield, Ohio (1950)
|
|
Market Cap
|
$5.04 billion
|
|
Industry
|
Property and casualty insurance
|
|
Trailing-12-Month Revenue
|
$3.81 billion
|
|
Management
|
CEO Steven Johnston
CIO Martin Hollenbeck
|
|
Return on Equity (Average, Past 3 Years)
|
9.6%
|
|
Cash/Debt
|
$379 million / $839 million
|
|
Dividend Yield
|
5.2%
|
|
Competitors
|
CNA Financial (NYSE: CNA )
Hartford Financial (NYSE: HIG )
Travelers Companies (NYSE: TRV )
|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 92% of the 263 members who have rated Cincinnati Financial believe the stock will outperform the S&P 500 going forward. These bulls include All-Stars eksummers620 and edwjm, both of whom are ranked in the top 20% of our community.
Late last month, eksummers620 tapped Cincinnati Financial as a solid income opportunity: "Dividend aristocrat with a low dividend payout ratio makes this stock a strong performer as it can obviously weather recessions and booms while continuously raising its dividend."
Over the next five years, in fact, Cincinnati Financial is expected to grow its bottom line at a solid rate of 10% annually. That's slightly faster than insurance rivals CNA (7.5%), Hartford Financial (8.3%), and Travelers (8.3%).
CAPS All-Star edwjm elaborates on the Cincinnati Financial bull case:
The company has been around half a century and raises its dividend every year. The stock trades below book value. At the current price of just under $34, the dividend is over 5%. The P/E is difficult to assess because earnings are in a downtrend short term, but should be ok long term.
What do you think about Cincinnati Financial -- or any other stock, for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
RSS Headlines
Fool UK