CINF was founded by independent insurance agents in order to better service their needs by providing them preferential treatment when picking an underwriter. The company primarily sells commercial property-casualty insurance with a smaller personal lines exposure marketed through a select group of about 1,100 independent insurance agencies. Like most financial services companies, CINF has seen its share of struggles. Back in December 2009 when I last looked at CINF, its Free Cash Flow payout of 78% turned me away from giving it serious consideration. Since then, the company has worked its FCF payout down to its present level of 47%. The stock has now earned the right for serious consideration when it is trading below its buy price of $34.00.
Source: Dividends Value
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