2 Insurance Stocks to Buy With Dividend Streaks Longer Than 50 Years
If you are looking for a reliable income stream, these two Dividend Kings should be on your watch list, if not your buy list.
Overview
The big story with insurance companies is the float. Essentially, an insurance company collects premiums, but doesn't have to pay out any money until there are claims. It can invest that cash, called the float, until it is needed for claims. This can create a very powerful income stream.
Cincinnati Financial (NASDAQ: CINF) and RLI (NYSE: RLI) have used that foundation to build incredible dividend track records, as both are Dividend Kings with over 50 annual dividend increases. If you are looking for reliable dividend stocks, you'll want to get to know these two insurance companies (and may even buy one of them).
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Details
Source
Originally published at www.fool.com.