Finding The Best Financial Dividend In The Market

Retirees are not getting a safe yield they can live on, and it may not get better for a long time.

Picking the right stocks can be the answer. Today, let's look at the financial sector.
Six Reasons P&C Insurance is the Best Financial Sub-Sector
Banks have major low rate headwinds, and we think that trend will last, but Property and Casualty insurers may fare better. P&C Insurance may be the best financial subsector because:
Insurance is Immortal -- The insurance industry will be around as long as capitalism is around. P&C Is Toughest -- Projecting how often cargo will be damaged, workers will be injured, or crops will be wiped out is a much less exact science than trying to project the average remaining natural life span of a large group of people. P&C is harder to underwrite than other types of insurance, and consequently the insurers end up erring on the side of favoring themselves, and raising rates when they are wrong. For this reason, P&C tends to be the most profitable type of insurance. Short Tail Less of a Detriment -- In the past, life insurance and other types of insurance with a "long tail" were very profitable. A company may keep a client's money for forty years, earning good returns, before it has to pay out coverage. Something like auto insurance, with a short tail of maybe 5 or 10 ten years until a claim, was not as preferable. But these days, with the market yielding very little on anything safe, the... Read more