Maiden Holdings (MHLD)
From Cabot Wealth Advisory 11/24/15 Sign up for Cabot Wealth Advisory—it’s free!
Insurance companies have traditionally been a great conservative way to build wealth and Maiden Holdings (MHLD), born in Bermuda in 2007, appears to be no exception. Plus, because it’s “small,” with just $2.6 billion in revenues, it can grow faster!
Right now, Maiden is growing revenues at moderate double-digit rates—11% in the latest quarter. Earnings growth has been less consistent, but analysts are looking for 31% growth in 2016. And the chart looks good.
I like the slow but steady uptrend. I like the sharp pullback from 17 to 13 on August 24, as the entire market plummeted for one day. It washed out the weak hands. And I like the recovery since then, followed by a normal pullback in recent weeks.
Last but not least, I like the dividend yield of 3.8%, which will almost certainly increase in the future.
Which brings me to a key point about the stocks recommended in Cabot Dividend Investor’s Dividend Growth group.
These stocks are selected not just for growth and dividends, but for growth of dividends.
So while you’ll get an annual dividend of 3.8% if you buy MHLD today, you’d have a higher dividend if you bought earlier, as the readers of Cabot Dividend Investor did.
They first bought in September of 2014, and now they not only have a profit of 31% on their investment, they’re also collecting dividends of 4.7%—based on their lower cost!
Bottom line: buying dividend-payers with real growth prospects rewards you two ways. If that sounds like a system that would help you achieve your retirement goals, you can find more information by clicking here.
|Maiden Holdings (MHLD)
131 Front Street, 2nd Floor
Hamilton, HM 12 Bermuda
Index Membership: N/A
Industry: Property & Casualty Insurance
Full Time Employees: 192