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How Chubb Limited (NYSE:CB) Could Add Value To Your Portfolio

Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Chubb Limited (NYSE:CB) due to its excellent fundamentals in more than one area. CB is a well-regarded dividend payer that has been able to sustain great financial health over the past. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Chubb here.

Established dividend payer with adequate balance sheet

CB’s debt-to-equity ratio stands at 31%, which means its debt level is reasonable. This means that CB’s capital structure strikes a good balance between low-cost debt funding and maintaining financial flexibility without overly restrictive terms of debt. CB's has produced operating cash levels of 0.35x total debt over the past year, which implies that CB's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

NYSE:CB Historical Debt, August 9th 2019
NYSE:CB Historical Debt, August 9th 2019

CB is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.

NYSE:CB Historical Dividend Yield, August 9th 2019
NYSE:CB Historical Dividend Yield, August 9th 2019

Next Steps:

For Chubb, I've compiled three important factors you should further examine:

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  1. Future Outlook: What are well-informed industry analysts predicting for CB’s future growth? Take a look at our free research report of analyst consensus for CB’s outlook.

  2. Historical Performance: What has CB's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of CB? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.