CB Raises Dividend, Okays Buyback: Is the Stock a Buy Now? – May 19, 2025
From Zacks Investment Research: 2025-05-19 15:30:00
Chubb Limited’s board of directors approved a 6.6% dividend hike to $3.88 per share, payable on July 3, 2025. The stock offers a 1.3% dividend yield, well above the industry average of 0.3%. Additionally, a new $5 billion share repurchase program was authorized effective July 1, 2025. With a history of capital deployment and wealth distribution, Chubb remains a strong pick for yield-seeking investors. The company’s focus on growth opportunities, prudent underwriting practices, and strategic investments bolster its position as a leading P&C insurer.
Despite a 6.5% gain in share price, Chubb’s stock is expensive with a price-to-book multiple of 1.67, above its five-year median. The stock has a Value Score of C and is cheaper than competitors like The Travelers Companies and The Allstate Corporation. Analysts remain optimistic about Chubb’s earnings outlook for 2025 and 2026, with a consensus price target of $308.38 per share, suggesting a 4.8% upside potential. However, caution is advised due to its premium valuation, projected decline in bottom line for 2025, and unfavorable leverage and times interest earned ratios.
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