Dividend Aristocrats In Focus: Chubb Ltd.

Up to date on January thirtieth, 2026 by Bob Ciura

Solely firms within the S&P 500 Index, with a minimum of 25 years of dividend progress, can declare the title of being a Dividend Aristocrat.

This membership is so unique that there are solely 69 such firms within the S&P 500 Index.

In consequence, Dividend Aristocrats are comparatively uncommon among the many broader S&P 500.

With this in thoughts, we created an inventory of all 69 Dividend Aristocrats, together with vital monetary metrics like price-to-earnings ratios and dividend yields.

You may obtain an Excel spreadsheet with the total record of Dividend Aristocrats by clicking on the hyperlink under:

Disclaimer: Certain Dividend isn’t affiliated with S&P World in any means. S&P World owns and maintains The Dividend Aristocrats Index. The knowledge on this article and downloadable spreadsheet relies on Certain Dividend’s personal assessment, abstract, and evaluation of the S&P 500 Dividend Aristocrats ETF (NOBL) and different sources, and is supposed to assist particular person traders higher perceive this ETF and the index upon which it’s primarily based. Not one of the info on this article or spreadsheet is official information from S&P World. Seek the advice of S&P World for official info.

Chubb Ltd. (CB) has elevated its dividend for 33 consecutive years. Chubb yields 1.3% proper now, which isn’t a excessive dividend yield.

Whereas Chubb isn’t a high-yield dividend inventory, it does present constant dividend will increase annually, backed by a robust enterprise mannequin.

Enterprise Overview

Chubb relies in Zurich, Switzerland, and offers insurance coverage companies, together with property & casualty insurance coverage, accident & medical health insurance, life insurance coverage, and reinsurance.

The corporate operates in over 50 international locations and territories. It’s the world’s largest publicly traded P&C insurance coverage firm and the biggest business insurer within the U.S.

For its fiscal third quarter, Chubb Ltd reported web earned premiums of $14.4 billion, which was 7% greater than the web earned premiums that Chubb generated throughout the earlier 12 months’s quarter.

Internet written premiums had been up 7% year-over-year as nicely, primarily due to progress within the P&C insurance coverage enterprise. Chubb was in a position to generate web funding earnings of $1.65 billion throughout the quarter, or $1.78 billion after changes, which was up by a pleasant 8% in comparison with the earlier 12 months’s interval.

Chubb generated earnings-per-share of $7.49 throughout the third quarter, which was a hefty 31% above the earlier 12 months’s quarter’s stage and which represents a brand new quarterly file.

Chubb’s above-average profitability throughout the quarter may be defined by robust premium progress and average disaster losses that didn’t trigger excessive prices in comparison with different quarters.

Due to written premium progress and tailwinds from share repurchases, Chubb’s income could possibly be robust within the coming quarters, until the corporate feels an impression from above-average disaster losses, which usually aren’t predictable.

Chubb’s e-book worth was up barely throughout the interval, ending the quarter at $182.22.

Progress Prospects

Chubb has created vital worth for shareholders when it comes to rising its e-book worth per share, a key metric for insurance coverage firms. Since 2009 the corporate’s e-book worth has grown at a compound common progress price of ~7% per 12 months.

As an insurance coverage firm, Chubb has a big pool of accrued premium earnings that has not been paid out in claims to prospects. This is named float. Insurers make investments premiums as quickly as they’re collected to earn curiosity or different earnings.

Robust written premium progress and tailwinds from greater rates of interest for Chubb’s funding earnings needs to be progress drivers for the corporate’s profitability in the long term, though traders must stay with fluctuations within the firm’s profitability on a year-over-year foundation.

These are attributable to disaster losses which are greater in some intervals, relying on what number of pure disasters strike in what areas, whereas disaster losses will likely be smaller in different years.

Aggressive Benefits & Recession Efficiency

Chubb’s aggressive benefits are its main trade place in addition to its monetary power.

First, Chubb is the world’s largest publicly traded property and casualty insurance coverage firm and the biggest business insurer in the USA. It has a dominant place throughout its product classes, which helps it to retain prospects.

It’s also in a robust monetary place. Chubb is rated A by Commonplace & Poor’s and Aa3 by Moody’s, the key U.S. credit standing companies.

Its wholesome steadiness sheet and excessive credit standing present the corporate with monetary power that helps retain purchasers and make investments for progress.

The insurance coverage trade may be cyclical. Because the financial strengths, folks are inclined to have extra discretionary capital that can be utilized so as to add to their insurance coverage insurance policies.

If the financial system weakens, prospects might pull again on their spending. This occurred throughout the Nice Recession for Chubb.

• 2007 earnings-per-share of $8.07
• 2008 earnings-per-share of $7.72 (-4.3% lower)
• 2009 earnings-per-share of $8.17 (5.8% enhance)
• 2010 earnings-per-share of $7.79 (-4.7% lower)
• 2011 earnings-per-share of $6.96 (-10.7% lower)

Though Chubb didn’t see fairly as extreme revenue declines as many different monetary companies, earnings-per-share did expertise some variability.

Nevertheless, Chubb remained extremely worthwhile throughout the Nice Recession, which allowed it to proceed elevating its dividend even via the steep financial downturn. Chubb additionally remained extremely worthwhile in 2021, even throughout the coronavirus pandemic.

Whereas earnings-per-share might fluctuate from 12 months to 12 months, the corporate’s e-book worth has elevated extra constantly.

Valuation & Anticipated Returns

Utilizing Chubb’s most up-to-date share value of ~$3.04 and earnings-per-share of $23.50 per share anticipated for 2025, the inventory trades for a P/E of 13.0, which is above our honest worth P/E of 12.

Growth of the valuation a number of might enhance annual returns by 0.1% per 12 months over the subsequent 5 years.

Taking the corporate’s anticipated EPS progress price of 4%, dividend yield of 1.3%, and valuation adjustments collectively results in whole anticipated returns of 5.3% per 12 months over the subsequent 5 years.

Ultimate Ideas

Whereas Chubb is a well-managed and diversified insurance coverage inventory with an extended historical past of rising e-book worth, we imagine the inventory will generate low whole returns within the coming years.

That is as a result of excessive valuation of the inventory in comparison with its 10-year common and the low dividend yield as a result of rising share value.

The steadiness in a cyclical trade is noteworthy, as is the distinctive dividend progress file, however the present valuation makes us lean towards a maintain advice.

Moreover, the next Certain Dividend databases include probably the most dependable dividend growers in our funding universe:

• The Dividend Champions: Dividend shares with 25+ years of dividend will increase, together with these that will not qualify as Dividend Aristocrats.
• The Dividend Achievers: dividend shares with 10+ years of consecutive dividend will increase.
• The Dividend Kings: thought-about to be the final word dividend progress shares, the Dividend Kings record is comprised of shares with 50+ years of consecutive dividend will increase

If you happen to’re searching for shares with distinctive dividend traits, think about the next Certain Dividend databases: