Out Fox The $treet

Chubb (CB) is a recent addition to the Net Payout Yields portfolio and provides one of the highest yields in the market these days. CB falls into the property and casualty insurance sector that continues to remain undervalued due to fears in the sector. With a PE of just 10, the stock remains cheap. Yesterday, CB announced the continuation of its dividend plus the a new share repurchase program of up to 30 million shares or roughly 10% of the outstanding shares. To this model, this provides the best of both worlds. First, investors get a solid 2.5% dividend providing a nice income stream and a solid return. Second, the huge stock repurchase provides a constant floor for the stock and the opportunity for a dramatic increase in earnings per share just from reducing the outstanding shares. It remains perplexing that such stocks remain this low with such support from the company. Regardless, the Net Payout Yields portfolio will happily take advantage fo declared a regular quarter...

Bought Chubb Corporation (CB) today for the Net Payout Yield Portfolio. CB has a current yield of 13.6% based on a 2.5% dividend yield and 11.1% buyback yield. More importantly CB has been more aggressive in the last 6 months on the buyback leading to an attractive investment potential. CB provides property and casualty insurance for both business and individuals. Interestingly insurance companies seem to have the best yields these days whether via Wellpoint (WLP) in health insurance, Medco Health Solutions (MHS) in pharmacy benefits, or CB in property and casualty insurance. CB is the only one of the three with a dividend that has the 10%+ yields in the insurance sector. Sold NYSE Euronext (NYX) to partly pay for this purchase, but mainly due to NYX no longer buying back stock leaving the yield low for this portfolio at just 4%. Also, for the new Covestor model it's a requirement for stocks to have a market cap of $10B leaving NYX short of that requirement so we've chosen ...