Business Magazine

Hartford Financial Services - HIG

Posted on the 28 December 2011 by Divstkforcomman @DivStkForComMan
On May 11th, 2007 the Hartford Financial Services Group, Inc., stock ticker HIG, was worth $105.34 and paying a 50 cent dividend. Today, December 28th, 2011 HIG sells for $16.07. Yes, that is a huge change in stock price, however HIG still pays a 10 cent quarterly dividend, which currently is a 2.49% dividend yield.  Let's backtrack for a second. HIG, together with its subsidiaries, The Hartford is an insurance and financial services company. They maintain a retail mutual fund operation, whereby HIG, through wholly-owned subsidiaries, provides investment management and administrative services to The Hartford Mutual Funds, Inc. and The Hartford Mutual Funds II, Inc., consisting of 52 mutual funds, as of December 31, 2010.  HIG is at a historical low, is a great value play, and while you wait for the share price to rebound you'll be paid. I am not some insider who has secret information about this company nor a psychic who can see the future, I just believe that HIG is where it's at for maximum gains. They are planning a buy back of their own stock in 2012 and their dividend will only keep growing at this point. Their P/E is among the lowest in their industry and should recover nicely as they return to respectable profitability in 2012. Essentially HIG has broke even during the past two quarter, however they are trading at less than half of their tangible book value! If you want to go bargain hunting to feed your Roth IRA then look no further than the Hartford. Not only are they a long time insurance company, but they have several lines that cater to our aging population. As the baby boomers continue to hit their retirement years expect sales to pick up drastically. The last time you could pick up HIG at these levels was the early mid 1990's. HIG may not be worth what they were worth in 2007, but they are worth more now than they were in 1994. There is nothing wrong with buying HIG and holding on for the long term. They are a company with over two hundred years of business experience and have been through worse through their company's history and repeatedly come out of the storm just fine in the end. Think of HIG as an insurance policy for your Roth IRA. HIG is only going to increase in value! Believe it. Please visit Hartford's website, here, and their Investor Relations website, here. Feel free to watch the videos below to learn more about this excellent company and consistent dividend payer. Have a great remainder of the week! I wish you much success with your Roth IRA stock purchases.

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