This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

5 Financial Stocks Ready for Bigger Dividends

Cincinnati Financial

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Mid-cap property-casualty insurer Cincinnati Financial (CINF) announced a new dividend payout at the start of this month, shelling out 40.5 cents this quarter to investors on July 16. The firm has been paying out its quarterly 40.5 cent dividend since 2009. But for a number of reasons, I think that this is CINF's last payout at that rate.

Unlike bigger insurers with armies of employee-agents, Cincinnati Financial caters primarily to smaller commercial clients through a network of independent agents. As a result, the firm is able to make the most of personal relationships that agents have built.

>>20 Smaller Stocks With Growing Dividends

That's the main reason why agents are at the center of the firm's expansion plan -- keep your agents happy and sales will follow. That mantra has played out incredibly well in the last few years; at present, Cincinnati Financial provides the lion's share of insurance coverage for most of those independent agencies.

The firm's underwriting standards are high, and that keeps risks low -- a welcome attribute for any investor's insurance portfolio. It also keeps earnings consistent enough to justify a hefty dividend yield: 4.4%. Shares of this stock have been on a tear since the start of 2012, climbing more than 20%.

Now could be a good time to ride that momentum ahead of a dividend hike.

Stock quotes in this article: PRU, BAP, HCC, MET, CINF 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs