5 Insurance Stocks to Buy for a Decade of Rising Dividends
2026-10-25 20:30
•Thomas Niel •The Motley Fool
••••• ••••• Axe Cap view
South African Insurance: Lessons from US Dividend Kings
US insurers show steady dividend growth; here’s what it means for SA investors and the JSE.
US insurers like Aflac and Travelers boast decades of continuous dividend growth, driven by their ability to profit from underwriting and investing premiums. South Africa’s listed insurers—Standard Bank’s insurance unit, Sanlam, and Old Mutual—are different beasts but share one common challenge: underwriting discipline amid economic cycles. The US examples underline the value of solid underwriting profitability paired with healthy investment returns to sustain dividend growth. Local insurers often face tougher conditions, with South Africa’s market vulnerability to regulatory changes and volatile economic growth. Meanwhile, the rand’s swings (USD/ZAR) will impact foreign earnings and investment returns for firms like Sanlam, which has global exposure. Therefore, while US dividend kings inspire confidence, the local sector demands caution. Investors should watch Sanlam for potential dividend stability and consider trimming more cyclical names like Old Mutual until underwriting improves. This view could be wrong if South African economic growth surprises positively or regulatory changes favor insurers aggressively expanding dividends. this is just our opinion and not financial advice
Trim exposure to Old Mutual and similar cyclical insurers. Watch Sanlam for steady dividend yields supported by its diversified earnings.
- Sanlam
- Old Mutual
- USD/ZAR
- South African economic slowdown
- Rand volatility impacting foreign earnings
6/10
The article recommends five insurance stocks with strong dividend growth track records: Aflac (45 years of consecutive increases), Chubb (33 years), Cincinnati Financial (66 years), Old Republic (46 years), and Travelers Companies (22 years). These insurers profit from underwriting and investing premiums (float), enabling consistent dividend raises. Each stock offers modest to moderate dividend yields but has demonstrated strong historical growth potential.
Our take is based on reporting first published by The Motley Fool.