– Premium float = regular investment income – Mature insurers reward shareholders with payouts – Dividend yield adds value in volatile markets
Top Dividend-Paying Insurance Stocks
– ICICI Lombard – Healthy payout history + profits – HDFC Life – Regular dividends, moderate yield SBI Life – Conservative but steady payouts
Why Dividend Matters
– Reduces volatility in return – Offers passive income alongside capital appreciation – Sign of financial health & capital discipline
Dividend-Related Risks
– High payout ratio may limit reinvestment – Dividend cuts during claim surges – PSU insurers may have policy-driven variability
Investment Insights
– Prefer insurers with consistent dividend & growing EPS – Watch payout ratio vs reinvestment needs – Use dividend payers for steady income in long-term portfolios