CINF - Why Investors Shouldn't Worry About This Dividend Stock's Unprofitable Year
2023-03-06 10:24:30 ET
Cincinnati Financial (NASDAQ: CINF) has grown its dividend payout annually for over six decades, earning it the rare designation of a Dividend King . Only eight public companies have increased their dividend over a longer time, affirming that this is one of the most reliable dividend stocks you could buy.
After a record profit in 2021, Cincinnati Financial posted an annual lost of $486 million in 2022. Despite this, the stock price is up 6.9% since the start of 2022, while the S&P 500 index is down 14.8%. Here's why investors shouldn't fret over Cincinnati Financial's net loss and why it will bounce back as the stock market recovers.
Cincinnati Financial's main business is writing insurance policies, including automotive, property, and homeowners insurance. Last year its insurance business performed well, growing its premiums by 11%. Despite this, the insurer posted a $486 million loss during the year, a significant decline from its $2.9 billion profit in 2021. This swing was due to lackluster performance on its investment portfolio.
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Why Investors Shouldn't Worry About This Dividend Stock's Unprofitable Year