Will Chubb (CB) Extend its Streak of Dividend Increases?

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Chubb Ltd. (CB) boasts a long 52-year streak of dividend increases. The company will most likely announce boost its quarterly payout again when it announces its next distribution this week. The stock currently offers a yield of 2.2%.

Technical Analysis

CB was recently trading at $132.1 down $16.48 from its 12-month high and $12.56 above its 12-month low. InvestorsObserver’s Stock Score Report gives CB a 28 long-term technical score and a 12 short-term technical score. The stock has recent support above $130 and recent resistance below $136. Of the 14 analysts who cover the stock 8 rate it Strong Buy, 2 rate it Buy, 2 rate it Hold, 0 rate it Sell, and 2 rate it Strong Sell, CB gets a score of 38 from InvestorsObserver’s Stock Score Report.

Analysts' Thoughts

Chubb is a property and casualty insurance company. Chubb has a very long history of dividend increases having boosted its quarterly payout each of the last 53 years. CB currently has a payout ratio of 28% so it can easily afford to extend its streak of dividend increases when it announces its next payout. The company historically announces its dividend increases during the third week of February so the new dividend is likely to come this week.

The company has lifted its payout by two pennies each of the last three years, and this year’s increase will likely be in-line with the recent hikes. Look for Chubb to boost its quarterly dividend from 73 cents to 75 cents, with the stock trading ex-dividend toward the end of March. Analysts have an average price target of $154.20 on the stock.

About Chubb Limited

ACE acquired Chubb in the first quarter of 2016 and assumed the Chubb name. The combination makes the new Chubb one of the largest domestic property and casualty insurers, with operations in 54 countries spanning commercial and personal P&C insurance, reinsurance, and life insurance.

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