Core Viewpoint - The article emphasizes the importance of constructing investment portfolios that focus on generating additional income through dividends, highlighting the significance of companies with competitive advantages and strong financials to achieve attractive Dividend Yield and Dividend Growth [1]. Group 1: Investment Strategy - The investment strategy involves combining high Dividend Yield and Dividend Growth companies to reduce dependence on broader stock market fluctuations [1]. - A well-diversified portfolio across various sectors and industries is recommended to minimize portfolio volatility and mitigate risk [1]. - Incorporating companies with a low Beta Factor is suggested to further reduce the overall risk level of the investment portfolio [1]. Group 2: Portfolio Composition - Suggested investment portfolios typically consist of a blend of ETFs and individual companies, emphasizing broad diversification and risk reduction [1]. - The selection process for high dividend yield and dividend growth companies is meticulously curated, focusing on total return, which includes both capital gains and dividends [1]. - This approach ensures that the portfolio is designed to maximize returns while considering the full spectrum of potential income sources [1].

Core Viewpoint - Allianz SE has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook based on an upward trend in earnings estimates, which significantly influences stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of earnings estimate revisions, which are strongly correlated with near-term stock price movements [4][6]. - For the fiscal year ending December 2024, Allianz is expected to earn $2.74 per share, reflecting a 12.3% increase from the previous year [8]. Analyst Behavior and Market Dynamics - Individual investors may struggle with rating upgrades due to the subjective nature of Wall Street analysts' assessments, making the Zacks rating system a valuable tool for understanding stock price movements [2]. - Institutional investors utilize earnings estimates to determine a company's fair value, leading to significant stock transactions that affect price movements [4]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7]. - Allianz's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Group 1 - Allianz SE (ALIZY) is currently outperforming its Finance peers with a year-to-date return of approximately 20%, compared to the average gain of 16.3% for Finance stocks [4] - The Zacks Rank for Allianz SE is 2 (Buy), indicating a positive outlook based on earnings estimates and revisions [3] - The consensus estimate for Allianz SE's full-year earnings has increased by 0.4% over the past three months, reflecting stronger analyst sentiment [3] Group 2 - Allianz SE belongs to the Insurance - Multi line industry, which is ranked 23 in the Zacks Industry Rank, and this industry has gained an average of 12.2% year-to-date [5] - Another notable stock in the Finance sector is Berkshire Hathaway B (BRK.B), which has returned 26.7% year-to-date and has a Zacks Rank of 2 (Buy) [4][5] - The Insurance - Property and Casualty industry, to which Berkshire Hathaway B belongs, is currently ranked 19 and has moved up by 26.8% year-to-date [6]

Economic Outlook - The current economic environment is raising recession alarms, reminiscent of the 2007 downturn, with indicators turning negative despite seemingly solid fundamentals [1] - A shift towards stable and profitable investments is recommended, including a balanced portfolio of treasury bonds and selected dividend stocks [1] Company Highlights Western Midstream Partners (WES) - Western Midstream Partners reported Q1 2024 earnings per share of $1.47, exceeding estimates by $0.68, with revenue growing 20.9% year-over-year to $887.73 million [1] - The company generated record free cash flow of $225 million in Q1 and currently offers a 9.3% dividend yield after a 52% increase in payout [1] Allianz (ALIZY) - Allianz SE's operating profit grew 6.8% to €4 billion in Q1, with net income rising 16%, and the stock is trading $5 above pre-pandemic levels [2] - The company has a 5.6% dividend yield, which is well-covered by earnings, making it an attractive option for dividend investors [3] HSBC Holdings (HSBC) - HSBC reported strong profits in Q2 2024, beating market expectations and initiating a $3 billion share buyback program, with a dividend yield of 7.5% [4] - The bank's robust margins provide a buffer against economic downturns, although concerns exist regarding its exposure to the Hong Kong commercial real estate market [4] Energy Transfer (ET) - Energy Transfer's Q1 results exceeded revenue expectations, with a strong performance across most segments, and it offers an 8.3% dividend yield [5][6] - Analysts have a "strong buy" consensus rating for ET, despite a slight miss in Q1 EPS estimates [6] Deutsche Telekom (DTEGY) - Deutsche Telekom's Q1 2024 service revenue grew 4.1% organically, with adjusted EBITDA increasing 6.9% year-over-year [7] - The stock has gained 26% over the past year and offers a 3.1% dividend yield, making it a reliable dividend payer [7] Axa SA (AXAHY) - Axa SA's Q1 revenues increased by 6%, and the company has made strategic moves, including a €5.4 billion sale and a €500 million acquisition [8] - The stock offers a 6.2% dividend yield and has seen a 12% increase over the past year, supported by a stable life insurance business [8] Canadian Imperial Bank of Commerce (CM) - Canadian Imperial Bank of Commerce has shown resilience in the challenging economic environment, with a 5.4% dividend yield [9] - The bank has seen sequential improvement in impaired PCLs in its Canadian personal and business banking segment, indicating stability [9]

Core Insights - The article emphasizes the importance of Zacks' ranking system, which focuses on earnings estimates and revisions to identify winning stocks, while also considering trends in value, growth, and momentum [1][2] Company Analysis - Allianz (ALIZY) is highlighted as a strong value investment opportunity, currently holding a Zacks Rank of 2 (Buy) and a Value grade of A [6] - ALIZY's P/B ratio is reported at 1.73, which is lower than the industry average of 2.23, indicating potential undervaluation [3][4] - The company's P/S ratio stands at 0.63, compared to the industry's average of 0.97, further supporting the notion that ALIZY is undervalued [7] Investment Strategy - Value investing is described as a strategy aimed at identifying companies undervalued by the market, utilizing fundamental analysis and traditional valuation metrics [5]

Financial Data and Key Metrics Changes - The total business volume increased by 7.5% to €48 billion, with an operating profit of €4 billion, representing 27% of the midpoint outlook [4] - Shareholder core net income rose by 16% compared to the previous year, supported by improvements in non-operating profit [4][33] - The solvency ratio stands strong at 203%, slightly down from 206% at year-end 2023 [9][10] Business Line Data and Key Metrics Changes - The Property & Casualty (P&C) segment showed a 7.5% internal growth, with an operating profit of €2.1 billion, up by more than 10% year-on-year [5][6][17] - Life and Health segment reported a record value of new business at €1.3 billion, with a new business margin of 5.7%, exceeding the target of 5% [7][24] - Asset Management achieved €34 billion in third-party net flows, leading to an operating profit of €800 million, reflecting a strong performance [8][31] Market Data and Key Metrics Changes - The P&C growth was driven by significant rate changes, particularly in the U.K. and Australia, with retail rates increasing by 11% [15][16] - The combined ratio for P&C improved to 91.9%, better than the previously guided range of 93% to 94% [17][20] - The investment side saw a 19% increase compared to last year, with an economic reinvestment yield of 4.3% [22] Company Strategy and Development Direction - The company is well-positioned to confirm its outlook of €14.8 billion for the year, with all key metrics in the first quarter exceeding full-year assumptions [33] - There is a focus on maintaining strong capital strength and managing growth effectively across all segments [15][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operating environment, noting that the first quarter results are better than expected and indicating a positive trajectory for the year [33] - The company is monitoring inflationary effects and adjusting reserves accordingly, particularly in the context of the motor market [56][68] Other Important Information - The company reported a negligible economic variance in the CSM work, with a normalized CSM growth of 1.7% [26] - The real estate portfolio experienced an 8% reevaluation last year and a 2% reevaluation in the first quarter, with expectations for similar levels throughout the year [68][70] Q&A Session Summary Question: Can you provide insight into the prudence of the attritional undiscounted loss ratio in Q1? - Management indicated that the attritional loss ratio was in line with expectations, with no significant supportive dimensions affecting it [35][37] Question: What are the expectations for the non-economic variances in the CSM? - Management noted that negative adjustments have been observed, but these are expected to stabilize as the company adjusts to IFRS 17 [36][41] Question: Can you explain the discounting benefit affecting the combined ratio? - The discounting effect was higher than anticipated due to seasonal patterns and increased reserves in certain operating entities [46][48] Question: What is the current opportunity set in the German P&C market? - Management highlighted strong growth opportunities in both motor and non-motor segments, with a notable increase in customer numbers [54][60] Question: How is the life business performing in terms of capital generation? - The life business is self-funding, with strong growth observed, although some capital consumption is noted due to new business growth [62][66] Question: What is the rationale behind the real estate portfolio reevaluation? - Reevaluations are conducted to ensure fair value representation of assets, reflecting market developments and occupancy rates [92][94]

Investors looking for stocks in the Insurance - Multi line sector might want to consider either Allianz SE (ALIZY) or Zurich Insurance Group Ltd. (ZURVY) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and es ...

According to a recent Bloomberg article, annuity sales in the U.S. could hit $700 billion over the next two years. In 2023, they hit a record of $385 billion, 23% higher than in 2022. That’s excellent news for annuity stocks. Bloomberg reported comments from Torsten Slok, chief economist at Apollo Global Management:“Key drivers for credit demand at the moment are retail and pensions seeking higher all-in yields, and annuity sales driven by more baby boomers retiring and by a higher level of interest rates g ...

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key ...

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.Zacks has developed the innov ...