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The Top Dividend Aristocrats in Insurance

By Jim Royal - Updated Apr 6, 2017 at 10:19PM

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Look to these dividend stars.

Dividend-paying companies are an oasis in the desert of underperforming stocks. They offer solid payouts today and the promise of capital gains tomorrow. According to a study by Ibbotson, reinvested dividends made up about 40% of total stock returns from 1926 to 2006. In fact, dividend investing is so appealing that superinvestor Warren Buffett has made it a significant component of his portfolio.

When searching for great dividend stocks, it makes a lot of sense to start with companies that have been playing the dividend game the longest. Standard & Poor's has culled the dividend winners from the also-rans in a list it calls the "dividend aristocrats."

Let's examine the top dividend aristocrats by yield in the insurance industry. For context, I've also included their five-year annualized dividend growth rate.

Company

Yield

5-Year Dividend Growth

Cincinnati Financial (Nasdaq: CINF)

5.1%

5.7%

Chubb (NYSE: CB)

2.6%

11.5%

Aflac (NYSE: AFL)

2.3%

21.0%

Source: Capital IQ, a division of Standard & Poor's.

These aren't formal recommendations -- just ideas for your own further research. Still, they could give you a great start toward finding companies capable of paying rising dividends for a quarter-century or more. You can see the fastest-growing 2011 aristocrats here.

Interested in reading more about Cincinnati Financial? Add it to My Watchlist, and we'll automatically aggregate our Foolish analysis on the stock just for you.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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Stocks Mentioned

Aflac Incorporated Stock Quote
Aflac Incorporated
AFL
$55.82 (2.84%) $1.54
Cincinnati Financial Corporation Stock Quote
Cincinnati Financial Corporation
CINF
$116.89 (0.88%) $1.01

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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