Tariffs don’t impact this stock — it delivers a 7.5% dividend, grows that payout at 23% annually, outpaces the S&P with 17% yearly returns — all with volatility similar to the index. If CNA Financial isn’t part of your portfolio, you might be missing out!
CNA is a property and casualty insurance provider that has shown solid growth and stability post-COVID. While it stands strong, if you seek even lower volatility with strong returns, consider the High-Quality portfolio, which has beaten the S&P 500 with over 91% returns since launch.
Look At These Numbers And Tell Us You Won’t Buy It Today
- 7.5% dividend yield with nearly 23% annual growth
- Over 6% revenue growth, impressive for an all-weather stock, with nearly 20% operating cash flow margin
- Roughly 17% annualized return, outperforming the S&P over the past 5 years
- Annualized volatility around 22%, close to the S&P’s 18% — unlike many high-performing, high-volatility stocks
- All this value at a low PE ratio of just over 14
Still not convinced? Here’s more: CNA delivered +3.8% in 2022 while the broader market fell nearly -19%. It has repeated its outperformance this year as well. With the market down -9%, CNA is up +3.3% (as of April 11, 2025)
Why Has CNA Been So Good?
P&C insurers like CNA benefit from reinvesting new premiums at higher bond yields — a major profit source. CNA has also effectively raised premiums across its commercial and specialty lines. As inflation increased replacement and repair costs, CNA swiftly repriced policies. Bottom line: this stock is defensive and less tied to speculative market segments.
Does This Mean No Risk?
Not quite. During the COVID crash, CNA dropped nearly -27% in a month compared to the S&P’s -12%, and it lagged behind the S&P in 2018. But post-COVID, the narrative has shifted. CNA and peers have increased premiums, and while there’s minimal direct tariff risk, there are indirect risks if customer businesses shrink and reduce policy needs.
There’s always inherent risk in holding a single or just a few stocks. Consider the Trefis High Quality Portfolio — a 30-stock collection that has consistently outperformed the S&P 500 over the past 4 years. Why? As a group, HQ Portfolio names have delivered stronger returns with reduced risk versus the index, offering a smoother investing experience as shown by the HQ Portfolio performance metrics.
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