Free Issue No. 04 of 13.02.2020
The shares of the ZURICH insurance group have continued to be a source of pleasure so far this year. Themes such as the quality of the company, stability and dividend strength seem to be dominating investor interest again this year. Many companies have started to release 2019 financial results. Insurance group ZURICH will do so today, February 13. The past financial year is expected to continue the good business performance so far. As a reminder, CEO Mario Greco presented ambitious medium-term targets last November. By 2022, the company aims to achieve a return on equity of 14% (previously: 12%) and organic profit growth of at least +5% per year. Because ZURICH still intends to distribute around 75% of earnings to shareholders, the dividend trend should continue on an upward trajectory over the next few years. At the beginning of April we expect a dividend payment of CHF 20 per share (yield 4.8%). So far, investors have not been disappointed by the management, which has been clearly reflected in the share price. If the business figures are convincing, which is to be expected, the share price should continue to soar. It cannot be ruled out that the company's management will increase the dividend, which could provide further share price fantasy. The stock of insurance group ZURICH has a high investment quality, moreover, the management is able to take advantage of the very competitive environment to generate higher growth. Last but not least: ZURICH pays one of the best dividends within the Swiss equity segment! When interest rates remain in negative territory or sink even lower, dividend gems like ZURICH shares offer a real investment alternative. The good run of the share should therefore continue. We are adjusting our price target upwards, but waive the stop-loss limit!
We are raising the price target from CHF 410 to CHF 435!