The Chubb Corporation (
), through its subsidiaries, provides property and casualty insurance to businesses and individuals. The company operates through three segments: Personal Insurance, Commercial Insurance, and Specialty Insurance. The company is member of the S&P 500 and the
S&P Dividend Aristocrats indexes.
Chubb has consistently increased dividends every year for 44 years. The company announced a
6.10% dividend raise in February 2009, plus a 20 million
share repurchase initiative in December 2008.
Between June of 1999 up until June 2009 this dividend growth stock has delivered an average total return of 3.90% annually. The stock is trading almost 50% above the levels it was changing hands a decade ago.
The company has managed to deliver an 11.60% average annual increase in its EPS between 1999 and 2008. Next year Chubb is expected to earn $5.15 share, followed by $5.20/share in FY 2010.
The Return on Equity has ranged over the past decade between a low of 2% and a high of 20%. Rather than focus on absolute values for this indicator, I generally want to see at least a stable return on equity over time. With the exception of 2001 and 2002, this indicator has been stable.
Annual dividends have increased by an average of 8.40 % annually since 1999, which is slower than the growth in EPS.