5 High Free Cash Flow Dividend Stocks

1. Chubb Limited (NYSE:CB)

Free Cash Flow Yield: 24.2%
Dividend Yield as of August 1: 1.76%

Chubb Limited (NYSE:CB) provides insurance products that cover property and casualty, accident and health, life insurance, and reinsurance.

At the end of Q2 2022, Chubb Limited (NYSE:CB) reported over $7 billion in cash, up from $1.6 billion at the end of December 2021. Its operating cash flow came in at $2.7 billion, up from $2.4 billion in the previous quarter. The company’s free cash flow yield came in at 24.2%. Chubb Limited (NYSE:CB) pays a quarterly dividend of $0.83 per share. The company spent over $348 million in dividends during the quarter. The stock’s dividend yield was recorded at 1.76%, as of the close of August 1.

In July, Jefferies lowered its price target on Chubb Limited (NYSE:CB) to $244 due to Russia-related losses and below-average investment returns of the insurance sector. However, the firm maintained a Buy rating on the stock.

At the end of March 2022, 31 hedge funds in Insider Monkey’s database owned stakes in Chubb Limited (NYSE:CB), down from 34 a quarter earlier. These stakes are collectively valued at over $1.8 billion.

Aristotle Capital Management mentioned Chubb Limited (NYSE:CB) in its Q1 2022 investor letter. Here is what the firm has to say:

“Our investment in Chubb began in the fourth quarter of 2015, shortly after ACE Limited announced it would acquire the Chubb Corporation, creating the largest global property and casualty insurance company by underwriting income. During our nearly seven-year holding period, the company’s combination progressed leading to the realization of main catalysts we had identified. These included cost savings, broadened product offerings and an expanded customer base, as well as enhanced distribution capabilities and improved pricing due to scale. In addition, Chubb successfully grew its profitable high-net-worth personal lines. While we still consider Chubb to be a high-quality business, few catalysts remain after what was, in our opinion, a remarkable run of successful business execution. As such, we decided to step aside in favor of what we believe to be a more optimal investment in Blackstone.”

You can also take a look at 10 Best Dividend Stocks to Buy in 2022 and 10 Best Long-Term Dividend Stocks

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