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Published On: Wed, Nov 7th, 2012

Chesnara on the rise with a 9% dividend yield

Chesnara, a British holding company that operate in the life insurance and pension sectors, have been steadily rising for the last few years. With a rise of 11 percent over the last 3 years and a 9% dividend yield they continue to attract attention from funds and individual investors alike. The holding owns and operates two subsidiaries; Countrywide Assured plc in the UK and Movestic Livförsäkring AB in Sweden.

Countrywide Assured plc are purchasers of “closed life insurers”, meaning they take on all policies of life insurers who have decided to close their doors and no longer accept new clientele. Countrywide Assured will then continue to collect the monthly, quarterly or yearly premium payments from the client until the agreement comes to an end through either the passing of the client or the client ceasing further payments.

The Swedish branch of the company, Movestic Livförsäkring AB, are life insurers in the more traditional sense. They both operate as a life insurer and acquire competitors that they feel have potential, such as Aspis Liv, a company they acquired in 2010. The Swedish division is where they had been falling short, holding back the larger group with their poor performances year on year. With new leadership now at the helm the company’s future looks a little more rosey.

Make no mistake, the group as a whole had been doing well, offering dividends of 16.6p last year and a rise to 17.3p is expected this year. Midas themselves have been recommending this stock since late 2009 and continue to do so now. Current holders are advised to hold, collecting more dividends in the near future, while new investors on the hunt for a respectable yield will probably find this rising stock, in a pretty stable industry, a tempting offer.

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About the Author

- Marcus Holland has been trading the financial markets since 2007 with a particular focus on soft commodities. He graduated in 2004 from the University of Plymouth with a BA (Hons) in Business and Finance.

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