He mentions that CINF’s dividend payout ratio is pretty high, and their dividend increases have been pretty small. The most recent increase was only 1.2422%, from 40.25 cents to 40.75 cents. When a company measures dividends to one-hundredths of a cent, perhaps that is a sign that you should look at a different stock.
Selling at the current price would give me about $1700. With that, I could buy about 18 shares of MMM, 20 shares of APD, 28 shares of DOV, 23 shares of CB, 25 shares of JNJ, or 42 shares of WGL. Many of those stocks have gone up in price since I bought them, but so has CINF. But I might sell CINF soon and wait for some of the other stocks to go down.
I already have a few other insurance stocks, so it’s not like one less will hurt me. Those have lower payout ratios and higher rates of dividend increases.