AFG - American Financial: Debentures Better Than Dividends For Income Investors
2024-06-05 14:57:39 ET
Summary
- American Financial's C-series baby bond now offers investors a return of more than 6.0%.
- Or, investors could buy AFG common stock for regular dividends, potential special dividends, share buybacks, and capital gains.
- However, for income investors, the AFGC baby bond offers a less volatile share price and low risk thanks to the parent company's profitable growth.
Investment thesis
American Financial Group, Inc. ( AFG ) is a successful property and casualty insurance company. And there are two ways in which you can invest.
You can buy its debentures, such as AFGC (AFGC), with a face yield of 5.125% and a current yield of 6.17%. I believe it is a security that allows you to sleep at night because there is little risk in my opinion....
American Financial: Debentures Better Than Dividends For Income Investors