Most of the money insurance companies make do not come from premiums, rather from interest paid on the premiums. Insurance companies sell policies at what they expect to pay out in the future, and then invest the premiums. As a result, although insurance companies can be strained in low-rate, tough economic times, insurance companies have the potential to see stock appreciation as sentiment improves, as well as paying out solid dividends. You should visit on Insider Monkey, for more info on the solid dividend plays.
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Wednesday, October 02, 2013
Solid dividend plays in the industry of insurance are revealed. Insider Monkey made a posting about " 5 Solid Dividend Plays in the Insurance Industry". Dividends can be very attractive in a low rate environment, such as the one we currently find ourselves in, where the Fed has vowed to keep target rates low through mid-2015. Worth noting is that dividend stocks are not without risks, however we look to limit risk by ensuring the companies can afford to pay dividends throughout an extended economic contraction.
Posted by Norlyn Opinaldo at 7:37 AM