Acquisition TRV

Travelers Companies Inc LogoThe recent Reynolds American (RAI) acquisition of Lorillard (LO) has left me with new shares of RAI stock and some free cash on hand. Therefore, I decided to go with one of the most undervalued dividend paying stocks currently. Travelers (TRV) company has been in my watch list for a while now, and the recent depreciation of this property and casualty insurance company helped solidify a position in my portfolio.

The Travelers Companies, Inc. was founded in 1853 and is based out of New York, New York. It is a leading provider in a wide range of commercial, personal property and casualty insurance products and services to businesses, government units, associations and individuals in United States and Internationally. The company’s diverse business lines offer its global costumers a wide range of coverage sold primarily through independent agents and brokers.

  • Dividend Yield: 2.4%
  • 3Yr Dividend Growth Rate: 10.6%
  • 5Yr Dividend Growth Rate: 11.8%
  • Payout Ratio: 26.2%
  • P/E: 9.6
  • Consecutive Years of Dividend Raises: 6

I purchased 10 shares for the price of $99.86 adding $24.40 to my annual dividend income.

This is the 6th time I am initiating a stock acquisition this year. This transaction is my initial purchase of TRV into the portfolio. Furthermore, the acquisition of TRV makes it the 30th company I am invested in. Currently, TRV ownership stake represents to be around 1.5% of my current portfolio value.

The 12-month dividend income increased to $2,395.

Thank you for reading & have a great day!

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4 Comments

  1. Captain Dividend on June 25, 2015 at 17:06

    I feel like I could have wrote the same exact summary as I also has money from the RAI merger that I wanted to put to work. I bought TRV a couple days ago as well at about the same price as you (wish I woulda waited a couple days). Good buy here.

    • DividendVet on June 25, 2015 at 20:18

      Thanks! I am sure quite a few of us dividend growth investors can relate to this recent merger, as a pile of cash is waiting for reinvestment. Glad to hear that you went with TRV as well, there has been quite a few solid dividend payers that have slipped in their valuations.

      Take care.

  2. FerdiS on June 26, 2015 at 02:05

    Welcome, fellow shareholder! This is a good buy of a solid dividend payer. I’ve been a shareholder for 2 years now, and like the stock.

    Congratulations and take care!

    • DividendVet on June 26, 2015 at 14:03

      Good to be a fellow shareholder! Definitely, the fundamentals of TRV are promising and dividend growth has been more aggressive than AFL.

      Much appreciated, best of luck!

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