Cincinnati Financial Corp ranked 9th for safe dividend growth, with a 2.64% dividend yield

From Yahoo Finance: 2025-04-06 08:59:00

In a recent article, we highlighted Cincinnati Financial Corporation (NASDAQ:CINF) among the 12 Best Dividend Kings for Safe Dividend Growth. The S&P Dividend Aristocrats Index, tracking companies with at least 25 years of consecutive payouts, has outperformed the broader market despite recent declines. Nuveen reports that dividend growth stocks have historically provided higher returns with less risk. Companies with strong dividend growth streaks delivered over 10% annual average returns from 1973 to 2024.

Dividend stocks have played a significant role in the market’s overall return for decades. Hartford Funds reports that dividends and reinvested dividends accounted for nearly 40% of the market’s return from 1930 to 2024. Dividend stocks have been successful in protecting capital against inflation, with dividends growing at an average of 5.7% compared to a 3.67% growth in inflation from 1957 to 2023. Stock prices have shown more volatility than underlying dividend cash flows, making dividends a reliable option for investors.

Jerome Powell warns of potential inflation due to sweeping tariffs, creating an uncertain investment landscape. Despite this, dividend stocks historically provide a safe haven against inflation. Cincinnati Financial Corporation (NASDAQ:CINF) ranks ninth among the best dividend kings, offering property and casualty insurance services. The company reported mixed earnings in Q4 2024, with a decline in revenue but an increase in operating income and net written premiums. The company’s cash position grew, and they declared a 7.4% dividend hike, stretching their streak to 64 years with a 2.64% dividend yield as of April 4.

Cincinnati Financial Corporation (NASDAQ:CINF) demonstrated resilience in its underwriting profit and combined ratio performance for 2024. Despite some earnings disappointments, the company ended the year with increased cash reserves and a dividend streak of 64 years. While CINF ranks 9th for safe dividend growth, investors may find more promising opportunities in deeply undervalued dividend stocks with higher return potential.



Read more at Yahoo Finance: Is Cincinnati Financial Corporation (CINF) the Best Dividend King to Buy for Safe Dividend Growth?