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Assurant: Diversify Your Dividend Income With This Insurer

Published Tue, 15 Sep 2020 10:36:40 -0400 on Seeking Alpha

Seeking AlphaDividend Ideas | Financials Assurant: Diversify Your Dividend Income With This InsurerSep. 15, 2020 10:36 AM ET|| About: Assurant, Inc. (AIZ)by: Dividend PowerDividend Power Long-term horizon, Dividend Growth Investing, Growth, Long OnlyDividend Power.cls-1{fill:#024999;}SummaryAssurant is a unique insurer focused on less capital-intensive businesses.
The stock is undervalued based on three valuation models.
The dividend has been raised for 16 consecutive years. Assurant is a Dividend Contender.
The current yield is 2.1% and above the average of the S&P 500. The dividend safety metrics are excellent.
Assurant Inc. (AIZ) is relatively little followed as a dividend growth stock. I last wrote an article about it in February 2019 on Seeking Alpha. There have been no articles on the stock since then. That said, you should take a look at Assurant. The stock is a Dividend Contender with 16 consecutive years of dividend growth. I think it will become a Dividend Champion. Assurant's stock price took a hit and the stock price fell in March and early-April after trading near a record high in mid-February. The stock has recovered some but is still down about 9% year-to-date. This may be an opportunity to take a position in a unique insurer that has a 2.1% dividend yield. Assurant has made strategic moves that have repositioned it in capital-light insurance lines. This will likely lead to long-term growth. I view the stock as a buy.
Source: Assurant
Overview of Assurant
Assurant Inc. traces its history to 1892. The company changed its name in 2004 to Assurant. Today, the company is a global provider of specialized insurance products and has operations in North America, Latin America, Europe and Asia Pacific. The company reports results in three business units: Global Lifestyle, Global Housing, and Global Preneed. Through its Global Lifestyle unit, Assurant offers insurance products for mobile, consumer electronics, appliances, and vehicles. The... Read more