Latest news with #CincinnatiFinancialCorporation
Yahoo
13 hours ago
- Business
- Yahoo
Is Cincinnati Financial Stock Outperforming the Nasdaq?
With a market cap of $22.8 billion, Cincinnati Financial Corporation (CINF) is a provider of property and casualty insurance products across the United States. The company operates through five main segments: Commercial Lines Insurance, Personal Lines Insurance, Excess and Surplus Lines Insurance, Life Insurance, and Investments. Companies valued at more than $10 billion are generally considered 'large-cap' stocks, and Cincinnati Financial fits this criterion perfectly. Its operations are supported by multiple subsidiaries, including The Cincinnati Insurance Company and its affiliates, offering a wide range of insurance and investment services. Is Palantir Stock Poised to Surge Amidst the Israel-Iran Conflict? 'It Has No Utility': Warren Buffett Doesn't Care How High Gold Goes, He Isn't a Buyer OpenAI CEO Sam Altman Says 'We Are Heading Towards a World Where AI Will Just Have Unbelievable Context on Your Life' Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. Despite this, shares of the Fairfield, Ohio-based company have declined 9.9% from its 52-week high of $161.74. CINF stock has increased marginally over the past three months, lagging behind the Nasdaq Composite's ($NASX) 11.7% rise over the same time frame. In the longer term, CINF stock is up 1.4% on a YTD basis, slightly outperforming NASX's 1.2% gain. Moreover, shares of the Insurance firm have soared 28.2% over the past 52 weeks, compared to NASX's 9.4% return over the same time frame. The stock has climbed above its 50-day and 200-day moving averages since May. Despite reporting weaker-than-expected Q1 2025 adjusted revenue of $2.6 billion on Apr. 28, shares of CINF rose 2.9% the next day as the company reported a smaller-than-expected adjusted loss of $0.24 per share. Investors were encouraged by strong core performance, with a 13% increase in earned premiums and a 9% growth in its core commercial lines segment. In comparison, rival Loews Corporation (L) has lagged behind CINF stock over the past 52 weeks, gaining 15.9%. However, Loews stock has risen 4.3% on a YTD basis, outpacing CINF's performance. Despite the stock's strong performance over the past year, analysts remain cautiously optimistic on CINF. The stock has a consensus rating of 'Moderate Buy' from nine analysts in coverage, and as of writing, CINF is trading below the mean price target of $152.83. On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Yahoo
02-06-2025
- Business
- Yahoo
Cincinnati Financial (NASDAQ:CINF) jumps 3.4% this week, though earnings growth is still tracking behind five-year shareholder returns
When you buy shares in a company, it's worth keeping in mind the possibility that it could fail, and you could lose your money. But on the bright side, if you buy shares in a high quality company at the right price, you can gain well over 100%. For example, the Cincinnati Financial Corporation (NASDAQ:CINF) share price has soared 111% in the last half decade. Most would be very happy with that. We note the stock price is up 3.4% in the last seven days. After a strong gain in the past week, it's worth seeing if longer term returns have been driven by improving fundamentals. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. During five years of share price growth, Cincinnati Financial achieved compound earnings per share (EPS) growth of 82% per year. The EPS growth is more impressive than the yearly share price gain of 16% over the same period. Therefore, it seems the market has become relatively pessimistic about the company. You can see below how EPS has changed over time (discover the exact values by clicking on the image). We like that insiders have been buying shares in the last twelve months. Even so, future earnings will be far more important to whether current shareholders make money. This free interactive report on Cincinnati Financial's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further. As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. As it happens, Cincinnati Financial's TSR for the last 5 years was 141%, which exceeds the share price return mentioned earlier. This is largely a result of its dividend payments! It's nice to see that Cincinnati Financial shareholders have received a total shareholder return of 33% over the last year. That's including the dividend. Since the one-year TSR is better than the five-year TSR (the latter coming in at 19% per year), it would seem that the stock's performance has improved in recent times. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. It's always interesting to track share price performance over the longer term. But to understand Cincinnati Financial better, we need to consider many other factors. Take risks, for example - Cincinnati Financial has 2 warning signs (and 1 which is significant) we think you should know about. Cincinnati Financial is not the only stock that insiders are buying. For those who like to find lesser know companies this free list of growing companies with recent insider purchasing, could be just the ticket. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
06-04-2025
- Business
- Yahoo
Is Cincinnati Financial Corporation (CINF) the Best Dividend King to Buy for Safe Dividend Growth?
We recently published a list of the 12 Best Dividend Kings to Buy For Safe Dividend Growth. In this article, we are going to take a look at where Cincinnati Financial Corporation (NASDAQ:CINF) stands against other best dividend kings. The importance of dividend stocks cannot be denied, even in today's market environment, which is dominated by AI stocks. The S&P Dividend Aristocrats Index, which tracks the performance of companies with at least 25 consecutive years, is down by over 4% since the start of 2025, compared with a much harsher decline of 13% in the broader market. Dividend stocks become increasingly popular when companies grow their payouts regularly. Historically, dividend growth stocks have performed better than their peers and have shown less volatility. The dividend growth track records, backed by solid fundamentals, offer reliable investment options to income investors. According to a report by Nuveen, dividend growth stocks have outperformed other asset classes with less risk. The report revealed that companies with strong dividend growth streaks delivered an annual average return of over 10% between 1973 to 2024, as compared to a 4.2% return of non-dividend paying stocks. During this period, dividend cutters delivered a nearly -2% return. Though dividend stocks also do not come with a promise and can also fluctuate, these stocks have made significant contributions to the market's overall return over the decades. According to a report by Hartford Funds, dividends and reinvested dividends represented nearly 40% of the market's return from 1930 to 2024, with capital appreciation making up the rest. The report also highlighted their significance when the economy was in the trenches. The data mentioned that during the 1940s, 1960s, and 1970s, the total returns were lower than 10%, however, dividends represented a larger portion of the market's performance. According to Jerome Powell, inflation in the US is likely to ramp up because of the President's sweeping tariffs. Here are some comments from Powell: 'We face a highly uncertain outlook with elevated risks of both higher unemployment and higher inflation. While tariffs are highly likely to generate at least a temporary rise in inflation, it is also possible that the effects could be more persistent.' While this presents an overall uncertain environment for an investment landscape, dividend investors are in the catbird seat, as dividend stocks have historically been successful in protecting capital against inflation. WisdomTree reported that from 1957 through 2023, dividends have grown by an average of 5.7%, compared with a 3.67% growth in inflation. The report also mentioned that over the past 68 years, dividend payouts have only decreased in six years, and in just one of those years, they dropped by more than 5%. In comparison, stock prices experienced declines in 18 years during the same period, with the worst drop exceeding 40% and an average decline of more than 11%. Stock prices have proven to be more than twice as volatile as the underlying dividend cash flows. This is because market sentiment often causes short-term fluctuations in stock prices, whereas dividend cash flows, which reflect the company's long-term value, are less volatile. Given this, we will take a look at some of the best dividend kings for safe dividend growth. A close-up of a hand signing a property casualty insurance product contract. For this article, we scanned the list of dividend kings, which are the companies that have raised their payouts for 50 years or more. From that list, we picked 12 companies with the highest 5-year annual average dividend growth rates. The stocks are ranked in ascending order of their annual average dividend growth in the past five years. At Insider Monkey, we are obsessed with hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). 5-Year Average Annual Dividend Growth Rate: 7.68% Cincinnati Financial Corporation (NASDAQ:CINF) ranks ninth on our list of the best dividend kings for safe dividend growth. The American insurance company offers property and casualty insurance services to its consumers. The company reported disappointing earnings on some fronts in the fourth quarter of 2024. Its revenue for the quarter came in at $2.53 billion, which fell by 24% from the same period last year. Net income also dropped to $405 million, from $1.18 billion in the prior-year period. However, the company's operating income of $497 million showed a 38% increase on a YoY basis. Its net written premiums also grew by 17% during the quarter. In addition, underwriting profit for the quarter rose by 40% compared to the strong performance in 2023, bringing the full-year underwriting profit to $580 million. For the full year 2024, the combined ratio improved by 1.5 points to 93.4%, supported by disciplined underwriting practices and catastrophe losses remaining consistent with the previous year. Moreover, the core combined ratio for 2024, excluding catastrophe losses and on a current accident year basis, was 1.9 points better than that of the full year 2023. Cincinnati Financial Corporation (NASDAQ:CINF)'s cash position also showed growth despite its poor earnings in some areas. The company ended the year with $983 million available in cash and cash equivalents, up from $907 million in December 2023. On January 31, it declared a 7.4% hike in its quarterly dividend to $0.87 per share. Through this increase, the company stretched its dividend growth streak to 64 years. The stock has a dividend yield of 2.64%, as of April 4. Overall, CINF ranks 9th on our list of the best dividend kings for safe dividend growth. While we acknowledge the potential of CINF as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than CINF but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at .
Yahoo
19-03-2025
- Business
- Yahoo
Cincinnati Financial Corporation Announces Internet Availability of Proxy Materials and Webcast for 2025 Annual Meeting of Shareholders
CINCINNATI, March 19, 2025 /PRNewswire/ -- Cincinnati Financial Corporation (NASDAQ:CINF) today announced the internet availability of materials for its 2025 Annual Meeting of Shareholders – the 2024 Annual Report on Form 10-K, the 2025 Annual Shareholder Meeting Notice and Proxy Statement and the 2025 Annual Letter to Shareholders. The company has filed these materials with the Securities and Exchange Commission, and they are available for viewing online. The 2025 Annual Meeting of Shareholders takes place on Saturday, May 3, at 9:30 a.m. ET at the Cincinnati Art Museum, 953 Eden Park Drive, Cincinnati, Ohio 45202. The company invites those unable to attend in person to visit for a live, listen-only webcast of the meeting. Participants are encouraged to visit the website to test their systems for compatibility in advance. A replay of the webcast is typically available approximately two hours after the close of the meeting. Over the next few weeks, shareholders of record on March 5, 2025, will receive voting instructions by mail or email. Subject to shareholder preferences, most shareholders will receive those instructions via a mailed Notice of Internet Availability of Proxy Materials that encourages online reading of proxy materials. Mailing the Notice in lieu of full printed materials reduces costs and environmental impacts. Shareholders who have previously made specific elections to receive printed materials or electronic delivery will continue to receive materials per those instructions. Shareholders who would like to specifically elect to receive printed materials free of charge or to receive electronic delivery will find instructions at in electronic delivery emails and on the Notice of Internet Availability of Proxy Materials. About Cincinnati FinancialCincinnati Financial Corporation offers primarily business, home and auto insurance, our main business, through The Cincinnati Insurance Company and its two standard market property casualty companies. The same local independent insurance agencies that market those policies may offer products of our other subsidiaries, including life insurance, fixed annuities and surplus lines property and casualty insurance. For additional information about the company, please visit Mailing Address: Street Address: P.O. Box 145496 6200 South Gilmore Road Cincinnati, Ohio 45250-5496 Fairfield, Ohio 45014-5141 View original content to download multimedia: SOURCE Cincinnati Financial Corporation Sign in to access your portfolio
Yahoo
06-03-2025
- Business
- Yahoo
Cincinnati Financial (NASDAQ:CINF) Will Pay A Larger Dividend Than Last Year At $0.87
The board of Cincinnati Financial Corporation (NASDAQ:CINF) has announced that it will be paying its dividend of $0.87 on the 15th of April, an increased payment from last year's comparable dividend. This makes the dividend yield 2.4%, which is above the industry average. View our latest analysis for Cincinnati Financial Impressive dividend yields are good, but this doesn't matter much if the payments can't be sustained. However, Cincinnati Financial's earnings easily cover the dividend. As a result, a large proportion of what it earned was being reinvested back into the business. EPS is set to fall by 67.7% over the next 12 months. If the dividend continues along recent trends, we estimate the payout ratio could be 74%, which we consider to be quite comfortable, with most of the company's earnings left over to grow the business in the future. The company has been paying a dividend for a long time, and it has been quite stable which gives us confidence in the future dividend potential. Since 2015, the dividend has gone from $1.76 total annually to $3.48. This implies that the company grew its distributions at a yearly rate of about 7.1% over that duration. Companies like this can be very valuable over the long term, if the decent rate of growth can be maintained. Investors who have held shares in the company for the past few years will be happy with the dividend income they have received. Earnings per share has been crawling upwards at 3.7% per year. While growth may be thin on the ground, Cincinnati Financial could always pay out a higher proportion of earnings to increase shareholder returns. Overall, we think this could be an attractive income stock, and it is only getting better by paying a higher dividend this year. The earnings easily cover the company's distributions, and the company is generating plenty of cash. We should point out that the earnings are expected to fall over the next 12 months, which won't be a problem if this doesn't become a trend, but could cause some turbulence in the next year. All of these factors considered, we think this has solid potential as a dividend stock. Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. However, there are other things to consider for investors when analysing stock performance. Taking the debate a bit further, we've identified 1 warning sign for Cincinnati Financial that investors need to be conscious of moving forward. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
