MoneyShow Top Picks 2026: Brown & Brown Inc. (BRO)

Brown & Brown Inc. (BRO) is a leading insurance brokerage firm that provides risk management solutions to both individuals and businesses, with a focus on property and casualty insurance. The company employs about 17,400 people, is expected to produce about $5.9 billion in revenue this year, and trades with a market capitalization of $27 billion, explains Ben Reynolds, editor of Sure Dividend.

Brown & Brown has increased its dividend payments for 32 consecutive years, including a 10% dividend increase announced on Oct. 23, 2025. Brown & Brown is a member of the exclusive Dividend Aristocrats list thanks to its long dividend growth streak.

(This write up came from our MoneyShow 2026 Top Picks Report. To get a FREE copy of the entire report, click here.)

On Oct. 27, 2025, Brown & Brown also announced third quarter earnings for the period ending Sept. 30, 2025. Adjusted earnings per share grew 15.4% to $1.05. The company continued its long record of strong execution as it integrated more than 5,000 new teammates, expanding its capabilities across markets globally.

Despite Brown & Brown’s long dividend history, it has a payout ratio of just 16%. As a result, the stock recently had a dividend yield below 1%, making it more compelling for growth-focused investors than yield-focused investors.

But the low payout ratio also means the insurer has ample funds to reinvest for growth. Brown & Brown’s growth strategy is both simple and sustainable. The company actively acquires smaller insurance brokerage firms and integrates them into its larger operating base.

Brown & Brown has an impressive growth record, as it has grown its EPS by 18% per year on average over the last nine years. Book value per share has grown at a double-digit rate over this period as well. We believe that the company’s strategy has plenty of room left to run and expect 11% average annual growth of EPS until 2030.

The company’s stock was recently trading at less than 19 times its projected 2025 earnings. We believe Brown & Brown deserves to trade at a premium multiple given its safety and growth prospects. Our fair value P/E ratio is 24.

As a result, we believe Brown & Brown to be meaningfully undervalued. The combination of strong growth, safety, and an undervalued stock price makes Brown & Brown a compelling purchase to kick off 2026.

Disclosure: Ben Reynolds is long BRO.