As market volatility persists and economic conditions shift, dividend-paying stocks remain a key component for investors seeking both income and long-term growth. Josh Brown, CEO of Ritholtz Wealth Management, has identified three insurance giants—Travelers Companies (TRV), Chubb (CB), and Aflac (AFL)—as top dividend picks for 2026. These firms are recognized for their disciplined underwriting, robust balance sheets, and consistent dividend growth.
Travelers Companies (TRV): Approaching Dividend Aristocrat Status
Travelers recently reported strong Q2 earnings, with core EPS of $10.04, nearly double the consensus estimate of $5.39. The company's net income surged 46% year-over-year to $2.2 billion, driven by a 14% increase in investment income and reduced catastrophe losses. Efficiency gains from its AI underwriting platform, “Travis,” have also expanded underlying insurance margins.
Brown highlights Travelers' 22 consecutive years of dividend increases, bringing it close to “dividend aristocrat” status. The company has retired approximately 70% of its outstanding shares since 2006, enhancing shareholder value. Brown recommends long positions with a stop-loss at $325, viewing the post-earnings rally as evidence of a self-funding growth engine.
Chubb (CB): Global Scale and Rising Investment Income
Chubb, the largest U.S. commercial insurer, operates in 54 countries, leveraging its global scale to write profitable premiums. In Q1, operating earnings rose 85% year-over-year to $6.82 per share, while net income nearly doubled from $5.3 billion in FY22 to $10.3 billion in FY25. The company's $173 billion investment portfolio is benefiting from higher interest rates as maturing fixed-income assets are reinvested at higher yields.
With 33 consecutive years of dividend hikes and an annual payout of $4.08 per share, Chubb demonstrates strong structural momentum. Brown notes a bullish gap-reversal pattern on the chart, suggesting that holding above the $320 support level could lead to a breakout.
Aflac (AFL): Longest Dividend Growth Streak
Aflac's dominant position in supplemental health insurance in the U.S. and Japan provides defensive cash flow. Q1 sales rose 25.5%, with margins expanding to 35%. The company generates up to $3 billion in annual free cash flow, which it directs toward share repurchases and dividends.
Aflac has raised its dividend for 43 consecutive years, the longest streak among Brown's picks. Currently yielding nearly 2%, the stock is trading near an all-time high of $125. Brown points to solid technical support at the 50-day moving average ($117) and a key trendline at $110 for long-term positioning. However, Wall Street rates AFL as a Hold, with a mean price target of $116, suggesting potential downside from current levels.
For investors seeking diversification beyond AI and tech, these insurance stocks offer a blend of income and stability. As highlighted in Diversify Beyond AI: 3 Stocks with Strong Fundamentals for 2026, such defensive plays can complement growth portfolios. Meanwhile, broader market movements, such as the Dow Gains 140 Points as Chip Stocks Rebound Ahead of Big Tech Earnings, underscore the importance of balancing exposure across sectors.
This article is for informational purposes only and does not constitute financial advice.
