Chubb Limited Dividend Growth

Dividend Growth Stock Overview: Chubb Limited

Photo: Flickr.com/Alan Cleaver

About Chubb Limited

Chubb Limited is a Zurich-based holding company whose subsidiaries provide insurance and reinsurance services across 54 countries. In addition to covering the traditional insurance lines of home and automobile insurance, the company also covers niche markets like aviation and energy, and provides liability insurance to high-net-worth individuals and families. Chubb Limited was formed when ACE Limited purchased S&P 500 Dividend Aristocrat The Chubb Corporation in January 2016, and began trading under the latter’s ticker symbol CB. The newly merged company, which is the world’s largest publicly traded property and casualty insurer, operates in 54 countries and employs over 30,000 people.

Chubb generates more than half of its net premiums from commercial property and casualty insurance and reinsurance contracts, with another 20% each from personal insurance contracts, and accident and health contracts.

Nearly two-thirds of the insurance premiums come from within the United States, 15% from Europe, Eurasia and Africa, and roughly 10% from Asia.

The company is a member of the S&P 500 index and trades under the ticker symbol CB.

Chubb Limited’s Dividend and Stock Split History

Including the dividend growth history before the merger of Chubb and Ace Limited, the company has increased its dividend payout year-over-year since coming public in 1993.  The company usually announces annual dividend increases in February with the stock going ex-dividend in June.

Chubb has compounded its payout at an average rate of 7.8% over the last 5 years and 10.3% over the last 10 years.

With regards to stock splits, Chubb Limited has only split its stock once – a 3-for-1 split in March 1998 as ACE Limited.

Chubb Limited’s Direct Purchase and Dividend Reinvestment Plans

Chubb Limited has both direct purchase and dividend reinvestment plans. You will need to be a current shareholder to participate in the plans, which means that if you own shares through your broker, you’ll need to have them transferred into your name. Once enrolled, the minimum investment amount for the direct purchase plan is $25 per transaction, up to $3000 per month.

The fee structure of the plans is favorable to investors. There is no setup fee to join the plan and Chubb covers all costs associated with share purchases. The only fees associated with the plan are when you sell your shares. When you do, you’ll pay a transaction fee of between $15 and $25 (depending on the type of sell order) and a commission of 12 cents per share.

Helpful Links

Chubb Limited’s Investor Relations Website

Current quote and financial summary for Chubb Limited (finviz.com)

Information on the direct purchase and dividend reinvestment plans for Chubb Limited