Swiss insurer Chubb (CB), one of Warren Buffett’s newest stocks, has announced a $5 billion stock buyback program and raised its quarterly dividend by 6.6%.
Confident Investing Starts Here:
- Quickly and easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
- Receive undervalued, market resilient stocks straight to you inbox with TipRanks' Smart Value Newsletter
Chubb’s board of directors approved the new $5 billion share repurchase program, and agreed to lift the quarterly payout to stockholders to $0.97 per share from $0.91 previously. The stock buybacks go into effect on July 1 and have no expiration date.
Chubb spent $385 million to buyback nearly 1.35 million shares during this year’s first quarter. The Switzerland-based property-and-casualty insurance giant has a current market capitalization of $118 billion. As for the new dividend, it will be payable on July 3 to shareholders of record as of June 13.
Dividend Aristocrat
The latest dividend increase marks the 32nd consecutive annual rise in Chubb’s distribution to shareholders, making the company a Dividend Aristocrat, which refers to companies that have raised their dividend for 25 consecutive years or longer.
Last year, it was disclosed that famed investor Warren Buffett had built a stake in CB stock. After secretly accumulating the stock, it was revealed that Buffett holds more than 27 million shares of Chubb worth $7.94 billion currently. Chubb is one of the few new stocks Buffett has bought over the past year as he has been a net seller of equities.
Warren Buffett will earn nearly $105 million in dividend payments from Chubb this year. CB stock has gained 7% so far in 2025.
Is CB Stock a Buy?
The stock of Chubb has a consensus Moderate Buy rating among 15 Wall Street analysts. That rating is based on eight Buy, six Hold, and one Sell recommendations issued in the past three months. The average CB price target of $312.07 implies 6.14% upside from current levels.
