Chubb Corp. (NYSE: CB) Dividend Stock Analysis


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:
- Avg. High Yield Price
- 20-Year DCF Price
- Avg. P/E Price
- 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:
- Free Cash Flow Payout
- Debt To Total Capital
- Key Metrics
- Dividend Growth Rate
- Years of Div. Growth
- 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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