With this recent acquisition I went with Erie Indemnity Co. (ERIE) as it has been on my watch list for some time now and one of my alerts notified that it was sale, well somewhat. Not a total steal here, but still got a fairly valued price. This is as boring as a company business can get – insurance… Insurance has been around for centuries and I am not seeing it going away well basically ever. I also believe that this is a great insurance for my “The Dividend Machine” if it ever breaks down. That was a joke guys and gals try to relax! Essentially, I like this ancient insurance business model as my other two holdings Aflac, Inc. (AFL) and Travelers Companies, Inc. (TRV) have done great by paying and growing dividends as well as steadily increasing in price. Oh also one last note, I am a longterm customer and their rates are even better than any other insurers (even some very Military friendly ones) and Erie still beat them! Has to be something right? Competitive or Non-Competative advantage?
Erie Indemnity Company was founded in 1925 and is headquartered in Erie, Pennsylvania. It provides sales, underwriting, and policy issuance services to the policyholders of Erie Insurance Exchange primarily in the Midwest, mid-Atlantic, and Southeast regions of the United States. The company sells its products through independent insurance agents. The company has a wide range of diversified insurance products such as auto insurance, motorcycle insurance, insurance coverage for car collectors, ATVs, RVs, boat insurance, homeowners insurance, renters insurance, condo insurance, mobile home insurance, personal valuables insurance, flood insurance, life insurance, personal catastrophe liability insurance, identity theft recovery coverage, business and commercial insurance.
- Dividend Yield: 2.9%
- 10 Year Dividend Growth Rate: 6.9%
- 5 Year Dividend Growth Rate: 7.2%
- 3 Year Dividend Growth Rate: 7.2%
- Payout Ratio: 68.0%
- P/E: 28.8
- Consecutive Years of Dividend Raises: 22
- Dividend Payout: Quarterly
I purchased 18 shares of Erie Indemnity Co. (ERIE) for the price of $115.94 per share for a total investment of $2,086.92 adding around $60.48 to my annual dividend income.
This is the 1st time I am initiating a stock acquisition this year. This transaction is my first ever purchase of ERIE stock shares into the portfolio. Currently, ERIE ownership stake represents to be around 1.7% of my current portfolio value. Also, the acquisition of ERIE makes it the 39th company or ownership stake I am invested in.
The Portfolio “The Dividend Machine” has been updated with link ➡️ here.
Thank you for reading & have a great day!