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Chubb Corp. (NYSE: CB) Dividend Stock Analysis
By: Dividends4Life   Monday, July 13, 2009 12:20 PM

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This article originally appeared on The DIV-Net July 6, 2009.

Linked here is a detailed quantitative analysis of Chubb Corp. ( ). Below are some highlights from the above linked analysis:

Company Description: Chubb Corp. is one of the largest U.S. property-casualty insurers, Chubb has carved out a number of niches, including high-end personal lines and specialty liability lines coverage.

Fair Value: I consider four calculations of fair value, see page 2 of the linked PDF for a detailed description:

  1. Avg. High Yield Price
  2. 20-Year DCF Price
  3. Avg. P/E Price
  4. Graham Number

CB is trading at a discount to 1.) and 4.) above. CB is trading at a 10.1% discount to its calculated fair value of $43.18. CB earned a Star in this section since it is trading at a fair value.

Dividend Analytical Data: In this section there are three possible Stars and three key metrics, see page 2 of the linked PDF for a detailed description:

  1. Free Cash Flow Payout
  2. Debt To Total Capital
  3. Key Metrics
  4. Dividend Growth Rate
  5. Years of Div. Growth
  6. Rolling 4-yr Div. > 15%

CB earned three Stars in this section for 1.), 2.) and 3.) above. A Star was earned since the Free Cash Flow payout ratio was less than 60% and there were no negative Free Cash Flows over the last 10 years. CB earned a Star as a result of its most recent Debt to Total Capital being less than 45%. CB earned a Star for having an acceptable score in at least two of the four Key Metrics measured.


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The above story is the opinion of the author only and it does not reflect iStockAnalyst opinion. Further, the author is not personally advising you regarding the suitability of the story for your investment needs. In no event iStockAnalyst will be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from or arising out of, or in connection with the use of this information. Please consult your investment advisor before making any investment decision.
  
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