This article presents an overview of the 5 Best Insurance Dividend Stocks To Invest In Right Now. For a detailed overview of such stocks read our article, 17 Best Insurance Dividend Stocks To Invest In Right Now.
5. Allstate Corp (NYSE:ALL)
Number of Hedge Fund Investors: 51
Allstate Corp (NYSE:ALL) has increased its dividend for 14 straight years. The stock has a dividend yield of about 2.14%.
Carillon Chartwell Mid Cap Value Fund stated the following regarding The Allstate Corporation (NYSE:ALL) in its fourth quarter 2023 investor letter:
The Allstate Corporation (NYSE:ALL) is an insurer focused on the property and casualty and life markets. Results benefitted from an improvement in the auto business. The company’s plan to divest its health benefits division also was received well by the market.
4. Marsh & McLennan Companies Inc. (NYSE:MMC)
Number of Hedge Fund Investors: 52
With about 14 years of consistent dividend increases Marsh & McLennan Companies Inc. (NYSE:MMC), Inc. is one of the most popular dividend stocks among hedge funds as 52 hedge funds tracked by Insider Monkey had stakes in Marsh & McLennan Companies Inc. (NYSE:MMC) as of the end of 2023.
3. Cigna Group (NYSE:CI)
Number of Hedge Fund Investors: 76
The Cigna Group has increased its dividends consistently since 2005. Its dividend yield stands at about 1.6% as of April 29.
Here is what Davis New York Venture Fund has to say about The Cigna Group (NYSE:CI) in its Q3 2023 investor letter:
“In the attractive healthcare sector, we look beyond the obvious to identify businesses that simultaneously have exposure to this growth industry and also trade at low prices. We’re especially drawn to companies like Cigna Group, whose products or services play a part in helping to mitigate healthcare’s constantly rising costs. The healthcare industry has been a growing part of the U.S. economy for decades. As a result, many companies in this sector trade at high valuations reflecting their robust but well-known reputation for growth. For value-conscious investors like us, investing in healthcare requires looking beyond the obvious to identify businesses that have exposure to this growth industry but which trade at low prices. Furthermore, recognizing that the constantly rising cost of healthcare cannot go on forever, we have been particularly drawn to companies whose products or services play some role in managing or reducing the cost of care. As a result, we have positions in Cigna Group, a well-regarded provider of managed care.
2. Humana Inc (NYSE:HUM)
Number of Hedge Fund Investors: 86
Health insurer Humana has increased its dividend at a CAGR of about 13% since 2014.
Diamond Hill Select Strategy stated the following regarding Humana Inc. (NYSE:HUM) in its fourth quarter 2023 investor letter:
“Only one stock detracted from performance in Q4 — health insurance company Humana Inc. (NYSE:HUM). The company faces growing concerns about heightened medical utilization, which would pressure health insurers’ medical loss ratios. Given heightened utilization among the Medicare Advantage population, there is some uncertainty among investors as to whether Humana’s rate bids for 2024 will prove adequate to cover increased costs. However, we maintain our conviction in Humana’s position as a leading insurer catering to the senior population with the opportunity to increase penetration of Medicare Advantage enrollment within the broader Medicare-eligible population.”
1. UnitedHealth Group Inc (NYSE:UNH)
Number of Hedge Fund Investors: 113
With about a decade and a half years of constant dividend increases, UNH is one of the top insurance dividend stocks popular among hedge funds.
ClearBridge Large Cap Growth Strategy stated the following regarding UnitedHealth Group Incorporated (NYSE:UNH) in its first quarter 2024 investor letter:
“Given our view that the overall market looks expensive, mostly due to mega cap valuations, the low likelihood that technology can continue to deliver well above market returns and an expected slowdown in economic growth, risk management has guided our recent positioning activity. We have been consistently trimming from the select bucket and redeploying into undervalued stable and cyclical names, while also being cognizant of position sizing to maintain the latitude to add to names when prices become attractive.
We were also active in adding to stable bucket investments PayPal and UnitedHealth Group Incorporated (NYSE:UNH) where negative near-term sentiment led to more attractive risk/reward profiles. We added to electronic payments provider PayPal as we have growing confidence that new CEO Alex Chriss’s strategic focus areas can improve the company’s performance, particularly in the key branded business. We added to our UnitedHealth position after shares were pressured due to fears over competition among managed care providers and rising medical loss ratios in the industry. We believe the company will be able to “re-price” for higher medical costs, making this pressure transitory and we see competitive concerns as overblown.”
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