8 Best Value Dividend Stocks to Invest in According to Warren Buffett

3. Chubb Limited (NYSE:CB)

Forward P/E Ratio: 11.38

Chubb Limited (NYSE:CB) is an American insurance company that offers a wide range of insurance products, including property and casualty, life insurance, and reinsurance, with operations across 54 countries. Although more than half of its premiums come from the United States, the company’s global presence helps protect it from regional disasters, contributing to its resilience.

Since CEO Evan Greenberg took charge in 2004, Chubb Limited (NYSE:CB) has built a strong and stable leadership team. Greenberg’s disciplined approach to underwriting has been key to the company’s success, ensuring that premiums are set accurately to manage risk while keeping customers satisfied. This strategy is reflected in the company’s combined ratio, a key insurance metric, which has consistently stayed under 100%. A ratio below 100% indicates that Chubb earns more from underwriting than it pays out in claims, demonstrating the effectiveness of its risk models. Maintaining this ratio for over 20 years highlights the company’s competitive advantage and operational excellence.

Chubb Limited (NYSE:CB) distinguishes itself by catering to high-income clients, particularly in the homeowner insurance market. Wealthier individuals tend to maintain their spending and continue paying premiums even during mild economic downturns, providing the company with greater stability. In the third quarter of 2024, the company reported a net income of $2.32 billion, reflecting a 13.8% increase compared to the same period the previous year. For Q3, the company posted an operating cash flow of $4.55 billion, with a trailing twelve-month operating cash flow of $14.8 billion. This strong cash position has enabled the company to increase its dividend payouts for 31 consecutive years. The stock has a forward P/E ratio of 11.38, which makes it one of the best value stocks according to Warren Buffett. The company currently pays a quarterly dividend of $0.91 per share and has a dividend yield of 1.34%, as of January 28.

Chubb Limited (NYSE:CB) was included in 51 hedge fund portfolios at the end of Q3 2024, up from 46 in the previous quarter, as per Insider Monkey’s database. The stakes owned by these funds are worth more than $10 billion in total.