5 Best Finance Stocks that Pay Dividends

1. The Progressive Corporation (NYSE: PGR)

Number of Hedge Fund Holders: 45
Dividend Yield: 5.1%

The Progressive Corporation (NYSE: PGR) is an insurance holding company and ranks 1st on our list of the best finance stocks that pay dividends. The company offers personal and commercial auto and personal residential property and other related insurance products in the US.

BofA just this July added The Progressive Corporation (NYSE: PGR) to its US 1 List, while MKM Partners has a Buy rating on the stock.

In the second quarter of 2021, The Progressive Corporation (NYSE: PGR) had an EPS of $0.71, missing estimates by $0.34. The company’s revenue was $11.48 billion, up 13.22% year over year and also beating estimates by $150.80 million. The Progressive Corporation (NYSE: PGR) has also gained 3.28% in the past 6 months and 8.51% in the past year.

By the end of the first quarter of 2021, 45 hedge funds out of the 866 tracked by Insider Monkey held stakes in The Progressive Corporation (NYSE: PGR) worth roughly $1.21 billion. This is compared to 48 hedge funds in the previous quarter with a total stake value of approximately $1.74 billion.

Wedgewood Partners, an investment management firm, mentioned The Progressive Corporation (NYSE: PGR) in its second-quarter 2021 investor letter. Here’s what they said:

“Progressive continues to report double-digit growth in policies in force (PIF), having added nearly 750,000 personal automobile and commercial PIFs in the first quarter of 2021, compared to the Company’s closest competitor, GEICO (a subsidiary of Berkshire Hathaway), which added just 124,000 PIFs. However, Progressive’s loss ratio has been elevated over the past few months due to a large, unseasonal ice storm that affected the southwestern U.S. We expect the financial effects of this to be short-lived and that the Company’s core earnings power should continue compounding in-line with its growth in PIFs. Traditional financial businesses are historically and relatively out of favor, if only evidenced by their slim weightings in major U.S. benchmarks, but there are pockets of exceptional growth businesses, such as Progressive, where we are happy to be contrarians.”

You can also take a look at 10 Best Finance Stocks To Buy Now and 10 Best Consumer Finance Stocks To Buy Now.

Follow Insider Monkey on Twitter