NGHC - Insurance Investment Strategies: Part II - Alternate Sources For High Yield
As explained in my first article, insurers are generally considered recession-proof. Thanks to strong leading positions in niche markets, some of them are able to generate recurring and resilient cash flows which are redistributed over the years to the shareholders. DGI Investors might find many insurance stocks, which could fit with their investment philosophy (well-covered dividend, low payout, predictable cash flows due to a leading position or strong competitive advantages).
Nonetheless, these companies' stocks remain usually expensive, as investors value their resilience and undeniable strengths. Hence, the dividend yield used to be low (about