{"id":8333,"date":"2020-12-28T23:52:01","date_gmt":"2020-12-28T18:22:01","guid":{"rendered":"https:\/\/capitalante.com\/?p=8333"},"modified":"2020-12-28T23:52:01","modified_gmt":"2020-12-28T18:22:01","slug":"best-insurance-stocks-to-buy","status":"publish","type":"post","link":"https:\/\/capitalante.com\/best-insurance-stocks-to-buy\/","title":{"rendered":"7 Best Insurance stocks to buy"},"content":{"rendered":"

The Insurance sector is a great addition to an investor\u2019s stock portfolio. The insurance sector not only delivers better returns in the long run but also is a recession-proof sector, since insurance is everyone\u2019s basic need nowadays after the corona pandemic. When you will leverage various valuation matrices, you will find the best insurance stocks to buy at an attractive valuation.<\/span><\/p>\n

\"Insurance<\/p>\n

3 Points to Consider before investing in Insurance Stocks<\/span><\/strong><\/h2>\n

When you are investing in any industry-specific stocks to diversify your stock portfolio, do consider the following points.<\/span><\/p>\n

Do you have a clear idea about the business model of a company?<\/span> <\/span><\/h3>\n

Have you a clear understanding of how the company generates its revenue? Will the products of the company tackle the peer competition? What are the future plans of the company? If yes, then you are free to invest in any sector without any woes.<\/span><\/p>\n

\"Do<\/p>\n

Whether the products or services of any sector will still relevant after 30 or 50 years?<\/span><\/h3>\n

This is the must question you should consider. After proper analysis when you find that the sector has huge upside potential in the near future, stay invested in that sector for the long run to create wealth.<\/span><\/p>\n

\"Whether<\/p>\n

Are you investing in any stock recommended on CNBC?<\/span><\/h3>\n

Don’t invest blindly in the stock market without analyzing the earnings, valuations, etc. that are recommended by weekend warriors on CNBC.<\/span><\/p>\n

\"Are<\/h2>\n

How to Pick Insurance stocks for Consistent Returns<\/span><\/h2>\n

\"How<\/p>\n

After choosing the sectors where you wish to invest, you need to pick the best stocks for consistent returns. In order to pick the best stock, you should check out the following parameters of the company.<\/span><\/p>\n

Parameter #1. Revenue \u2013<\/span> Revenue or net sales of a company should be constant for at least 5 years. You may check that the company has been generating sales growth annually during the last 5 financial years of at least 10%.<\/span><\/p>\n

Parameter #2. Net Profit \u2013<\/span> The net profit of a company increases at least 15% on a year-on-year basis.<\/span><\/p>\n

Parameter #3. Healthy dividend payout and stable Earnings-per-share<\/span><\/h3>\n

Let\u2019s assume, a company has a net income of $ 10,000 per year. It Pays $5,000 in a preferred dividend to investors. It has 50 shares outstanding.<\/span><\/p>\n

\"Earning<\/a><\/p>\n

It is a good idea to invest your money in those stocks that regularly pay a dividend and deliver a Healthy dividend payout. The stocks which have delivered healthy dividend-paying must have the following features<\/span><\/p>\n