Travelers Companies - A Great Buy

I've had Travelers Companies Inc. on my watchlist since the beginning of 2015. I really wanted to add Travelers Companies to my Dividend Dreams Portfolio but I have been waiting for a dip in price. A dip came in June but I did not have a buy order in place so I missed an entry at $95.86. Earlier this week another buy opportunity came about when TRV stock dropped again. I purchased 30 shares of Travelers Companies Inc. (NYSE: TRV) for $98.93 per share, totaling $2,977.12. This purchase adds $73.20 to my annual dividend income. Why did I buy Travelers Companies? It's no secret that I like Insurance stocks. In fact I think insurance companies are a very safe bet. If I had to choose an insurance company over a bank I would choose an insurance company every time. Travelers is the third insurance company in my portfolio behind, Aflac and MetLife. Founded in 1853, Travelers is one of the oldest insurance companies in the United States. Travelers Companies is the second largest writer of U.S. commercial property casualty insurance. The image below illustrates the strength of Travelers commercial insurance market share. The company is number 1 or 2 in 31 states.

Travelers Companies Commercial Insurance Rankings By State

 

Source: www.travelers.com

Additionally, Travelers is the third largest writer or personal insurance in the United States. In 2014 the company assets and shareholder equity were valued at over $103B and total revenue was $27B. Travelers has a seasoned management team at the helm and it is the only property casualty company in the Dow Jones Industrial Average. Exceptional products and leadership, market share, strong revenue and assets, and a growing dividend. This is my kind of company.

Travelers Companies Overview

The Travelers Companies, Inc. is a holding company. Through its subsidiaries, the Company is engaged in providing a range of commercial and personal property and casualty insurance products and services to businesses, Government units, associations and individuals. The Company has three operating segments: Business and International Insurance segment, Bond & Specialty Insurance segment and the Personal Insurance segment. Business and International Insurance segment offers a range of property and casualty insurance and insurance related services to its customers, primarily in the United States, as well as in Canada, the United Kingdom, the Republic of Ireland and throughout other parts of the world. Bond & Specialty Insurance segment provides surety, crime, management and professional liability coverages, and related risk management services. Personal Insurance segment includes a range of property and casualty insurance covering individuals' personal risks. Source: www.schwab.com.

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Full Disclosure: Long TRV

I am not a certified financial planner.  I am a personal investor and blogger who writes about my personal ...

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