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4-Star Stocks Poised to Pop: Cincinnati Financial

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 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 $4.09 billion
Industry Property and casualty insurance
Trailing-12-Month Revenue $3.91 billion
Management

CEO Steven Johnston

CIO Martin Hollenbeck

Return on Equity (average, past 3 years) 9%
Cash/Debt $313 million / $839 million
Dividend Yield 6.4%
Competitors

CNA Financial (NYSE: CNA  )

Hartford Financial (NYSE: HIG  )

Travelers Cos. (NYSE: TRV  )

Source: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 92% of the 282 members who have rated Cincinnati Financial believe the stock will outperform the S&P 500 going forward. These bulls include bkwfool and TheNoobInvestor.  

This past summer, bkwfool tapped Cincinnati Financial as an attractive bargain opportunity: "Price beaten down by recent losses due to tornado damage claims. But they are conservative underwriters currently selling below book value with a long history of dividend growth."

In fact, Cincinnati Financial currently sports a particularly juicy dividend yield of 6.4%. That's much higher than that of competitors such as CNA (1.8%), Hartford Financial (2.5%), and Travelers (3.4%).

CAPS member NoobInvestor elaborates on the income opportunity:

A nice strong dividend legend. Pays out great, there will always be a need for insurance, and Cincinnati Financial is definitely a seasoned vet in any economy, and has been rewarding its shareholders year after year. It has gotten shaken up by a few tornadoes recently, but it'll soon regain it's composure and walk right through them. I like CINF long.

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!

Interested in another easy way to track Cincinnati Financial? Add it to your watchlist.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. 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 Fool's disclosure policy always gets a perfect score.


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 05, 2011, at 2:39 PM, kcourtneyfool wrote:

    I am a real estate guy pretending to be a stock guy, so forgive my naivety with my comment. CINF has a nice dividend at 6.4%, its stock price is near its 52week low with signs of going up based on this article. I try to get a general consensus from experienced groups like CAPS, Zacks and S&P, before investing in a stock. If CINF is a good stock, how can CINF have a CAPS 4 Star (good), S&P 3 Star (marginal) and a Zacks rating of 5 (strong sell). I may need to stick to real estate.

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Related Tickers

5/25/2012 4:00 PM
CINF $35.66 Up +0.02 +0.06%
Cincinnati Financi… CAPS Rating: ****
TRV $62.60 Down -0.59 -0.93%
The Travelers Comp… CAPS Rating: ****
HIG $17.33 Up +0.09 +0.52%
Hartford Financial… CAPS Rating: ***
CNA $28.56 Down -0.15 -0.52%
CNA Financial Corp CAPS Rating: ****

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