CNA Stock: High-Yielding Insurance Pick Offers More Than Just Regular Dividends
March 20, 2025
CNA Stock Offers Investors Reliable, High-Yield Income
Today’s focus income pick is CNA stock.
When investors think about income-generating stocks, they often pay a lot of attention to utilities, real estate investment trusts (REITs), business development companies (BDCs), or blue-chip dividend-payers like Coca-Cola Co (NYSE:KO) and Johnson & Johnson (NYSE:JNJ). One area of investment that’s usually overlooked is insurance companies…and that’s a big mistake.
You see, insurance companies can be some of the most reliable income-generating machines for long-term investors.
This is because insurance is a business that comes with some predictability.
How so?
Well, insurance companies collect premiums up front and then take that money to invest and pay out claims. The claims are often paid late. This allows insurers to generate consistent cash flow, which they can use to reward shareholders with dividends.
With this in mind, an insurance stock like CNA Financial Corp (NYSE:CNA) could be worth a look. Those who own CNA stock get paid a regular dividend, plus special dividends.
What Does CNA Financial Do?
Based in Chicago, Illinois, CNA Financial is a subsidiary of Loews Corp (NYSE:L). It’s an insurance holding company, focused on providing commercial property and casualty insurance products in the U.S. and internationally.
It operates through several business segments: Specialty, Commercial, International, and Life & Group.
CNA Financial offers professional liability coverage and risk management services to professionals like architects, real estate agents, accountants, and lawyers. It also offers insurance coverage for small- and mid-sized businesses, public and privately held firms, and not-for-profit organizations, including protection for company leaders, employee-related claims, cyber risks, and more. Furthermore, it provides liability insurance for health-care providers, bonds and warranties, and risk-related products.
In addition, the company insures properties, marine businesses, and equipment like boilers and machinery. CNA Financial offers casualty insurance, including workers’ compensation, general liability, commercial auto, and excess coverage, while also helping businesses manage risks with customized insurance programs. In addition, the company manages old long-term-care insurance policies. (Source: “Profile,” Yahoo! Finance, last accessed March 14, 2025.)
Solid Financials Tell a Bullish Tale
CNA Financial posted solid results in its most recent earnings report. The insurance company’s net income for 2024 was $959.0 million, or $3.52 per diluted share. Its income was a little lower than last year’s, but still solid.
More importantly, its combined ratio, a key measure for insurance companies, was 94.9%. Anything under 100% means the insurance company is making money on its insurance policies, rather than losing money.
Another important measure to look at with CNA Financial is its return on investment portfolio. Remember: most insurance companies invest the premiums they collect before paying out claims. So, they have to be good money managers as well, because that’s where dividends might generally be impacted.
CNA is good at managing money. In 2024, the company’s net investment income was $2.49 billion, up from $2.26 billion in 2023. It holds about $46.56 billion in investments, with most of it in high-quality bonds. This gives the CNA Financial steady, predictable income, which helps fund its dividend payments.
All of this is good news for those who own CNA stock.
CNA Stock Pays Regular & Special Dividend
For income investors, the real appeal of CNA stock is its dividend. CNA Financial pays a quarterly dividend of $0.46 per share, which translates to a yield of around 3.8%, or $1.84 per share on an annual basis—much higher than what you’d get from most S&P 500 stocks, but still low for us here at Income Investors.
Here’ the kicker: CNA stock pays a special dividend on top of its regular dividend. The latest special dividend was $2.00 per share, given out in March. This is something CNA stock has done since 2014: rewarding shareholders with extra cash when business is strong.
Assuming a regular dividend of $1.84 and special dividend of $2.00, this makes the total dividend $3.84, putting CNA stock’s forward dividend yield above eight percent.
It’s also worth noting that CNA stock’s dividend payments have grown over the years. Consider this: in 2015, its regular quarterly dividend payment was $0.25 per share; that same quarterly dividend is now up 76% over the past decade. (Source: “Dividends,” CNA Financial Corp, last accessed March 14, 2025.)
The Lowdown on CNA Stock
CNA Financial is an insurance company that’s good at what it does. The company has been posting a solid financial performance, and it’s great at managing its investments.
CNA shareholders don’t just get rewarded with regular dividends; they receive special dividends as well. And these special dividends get better when CNA Financial’s business does well.
Moreover, a significant portion of this company is owned by large investors. As per the most recent data, 99.29% of all outstanding CNA shares were owned by institutional investors. Loews is the biggest shareholder of CNA Financial, with a 91.71% stake in the outstanding shares. (Source: “Holders,” Yahoo! Finance, last accessed, March 14, 2025.)
