Look beyond banks for solid dividends: Intact Financial and T. Rowe Price

Article Excerpt

The Finance sector offers income-seeking investors many options beyond Canadian and U.S. banks. Those include high-quality dividend payers such as insurer Intact and mutual fund-operator T. Rowe Price. INTACT FINANCIAL CORP. $163 is a buy. The company (Toronto symbol IFC; High-Growth Dividend Payer Portfolio, Finance sector; Shares outstanding: 143.0 million; Market cap: $23.3 billion; Dividend yield: 2.0%; Dividend Sustainability Rating: Above Average; www.intactfc.com) gives you exposure to Canada’s largest provider of property and casualty insurance. Intact has over $12 billion in annual direct premiums written; it insures more than five million individuals and businesses. Its major brands are Intact Insurance, Canada BrokerLink and belairdirect. The company last raised its quarterly dividend with the March 2020 payment. Investors now receive $0.83 a share, up 9.6% from $0.76. The new annual rate of $3.32 yields 2.0%. Due to the uncertainty over COVID-19, Intact has delayed the planned increase for 2021 until later in the year. The company is now buying U.K. property and casualty insurer RSA Insurance in partnership…

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