Travelers Poised To Continue Its Impressive Streak Of Dividend Hikes

About: The Travelers Companies, Inc. (TRV)
by: Dilantha De Silva
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Dilantha De Silva
Long/short equity, value, growth at reasonable price, research analyst

Travelers shares have gained 19% in the last three years, supported by the rising interest rate environment. However, things have changed in the last few months.

The company will be challenged by declining interest rate but the long-term outlook remains positive.

Travelers has hiked its dividend per share in each of the last 14 years, and the streak will likely continue in the next five years as well.

Shares seem to be fairly valued.


Investment thesis

Insurance companies are increasingly going out of favor of many growth-oriented investors as the growth prospects are perceived to be minimal for this industry. However, this shouldn’t stop income investors from