Next 2017 Dividend Machine An Insurer

I have found my next Dividend Machine. A Dividend Machine to me must meet my minimal criteria to be included in my long only target 2017 portfolio. I don't trade these stocks, I don't sell calls on them, I don't reinvest the dividends. The stocks I pick for my target portfolios are long only. By tracking my long only portfolios, income investors can simply measure how well we do over time when we carefully select income stocks and stick with them.
In this post, I am writing about insurance stocks.
With a low P/E (price earnings ratio) in a high P/E environment. Dividend yield must beat the yield on a 10-year U.S. treasury bond. Analysis of dividend growth tips the scale as to which stock will be added to the 2017 portfolio. LOW P/E STOCKS
The S&P 500 index has a P/E of about 26.25 (source mutlpl.com and Barron's.) The universe with low P/Es is the insurers. According to CSImarket.com the property and casualty industry P/E ratio is about 9.26 using the 4th quarter of 2016 data.
Without a doubt, not all insurers have low P/Es. The universe is quite large,. Some have P/Es in the triple digits. I looked at no fewer than 20 stocks with P/Es less than the S&P 500. I found none with P/Es as low as 9.26. The four stocks I evaluate in this post have P/E ratios ranging between 12.25 and 20. All are below the S&P 500 average. See the P/E comparisons of the four stocks I include in this post below: (Baldwin & Lyons, Inc. (Nasdaq: BWINB), Safety... Read more