#5 - Travelers Companies (NYSE:TRV)
The financial sector is another area where investors can look for stocks to buy in a rising interest rate environment. That can bring to mind banks such as JPMorgan Chase & Co. (NYSE: JPM), but you can also look at the insurance sector and, specifically, the Travelers Companies, Inc. (NYSE: TRV).
Insurance companies are all about risk management. That means most of their underlying investments are in the relative security of the bond market. When interest rates are low, these investments underperform stocks. But the reverse can be the case when interest rates are rising. Plus, insurance is a sticky part of an individual or household budget. Put, premiums have to be paid.
In 2022, TRV stock went up 5% while the broader market was having its worst year since 2008. And over the last five years, the stock has gained over 27%. That doesn’t include the company’s dividend, which has a respectable yield of 2.07% and has increased in each of the last 20 consecutive years.
About Travelers Companies
The Travelers Companies, Inc, through its subsidiaries, provides a range of commercial and personal property, and casualty insurance products and services to businesses, government units, associations, and individuals in the United States and internationally. The company operates through three segments: Business Insurance, Bond & Specialty Insurance, and Personal Insurance.
Read More - Current Price
- $257.03
- Consensus Rating
- Hold
- Ratings Breakdown
- 6 Buy Ratings, 13 Hold Ratings, 4 Sell Ratings.
- Consensus Price Target
- $247.90 (3.6% Downside)
