Book value

Below book value and paying dividends: 5 shares

Each of these stocks is now trading below its book value and each pays a dividend. Both of these factors make them likely candidates for the value stock investor, although further research is required.

They’re also all insurance stocks, the type often favored by Warren Buffett and, once, by Benjamin Graham.

American international group

(NYSE: AIG) is trading at just 96% of its book value and with a very low price/earnings ratio at 3.58. The company pays a dividend of 2.34%. It is a large insurance company, one of the largest in the world, with life, property and casualty offerings. Credit Suisse has maintained a “neutral” rating on AIG since September 12, 2022.

The price is lower today than it was at the start of the year. Can he regain his momentum?

Financial Jackson (NYSE: JXN) can be purchased at 29% of its book value. It trades with a price/earnings ratio of 0.50 and a forward p/e of 1.84. The company pays a dividend of 6.87%. Jackson focuses on the annuity segment of the floating, fixed and fixed index insurance market. On September 9, 2022, Jeffries maintained its “buy” rating of the company and raised the price target to $38.

It’s another low now than it was on January 1, 2022. From a previous high of 45 to its current level of 31, it’s a rapid decline of 31%.

Lincoln National

(NYSE: LNC) is a life insurance company that now trades at a 9% discount to book value with a price-earnings ratio of 9.48. Lincoln pays a dividend of 3.67%. In May 2022, Citigroup
launched analyst coverage with a “neutral” rating and a price target of $56. In June 2022, Jeffries downgraded Lincoln from “outperformance” to “peer performance” and gave it a price target of $53.

The stock is having a tough 2022, dropping from a high of 75 at the start of the year to its current price of 40.

Radian Group

(NYSE: RDN) is a specialized operation focused on services to the mortgage insurance and real estate industry. The company is available for purchase at 91% of its book value and trades with a price-earnings ratio of 5.40. Bank of America
Headlines in mid-August 2022 moved Radian Group from “underperforming” to “neutral” with a price target of $24.

Lower highs and lower lows so far in 2022, but the stock seems to be holding up better than its peers so far.

Unum Group (NYSE: UNM) is a life and disability insurance company that currently trades at 85% of book value. The price/earnings ratio of 7.49 is low compared to the S&P 500 p/e of 19.38. Citigroup launched the Unum hedge in May 2022 with a price target of $36. Goldman Sachs on September 19, 2022 maintained its “buy” rating on the stock and raised the price target to $42.

More buyers than sellers all year for this stock as the uptrend continues into September.

No investment advice. For educational purposes only.