Investing in beaten-down dividend shares with robust fundamentals permits you to profit from a tasty yield in addition to capital good points when market sentiment recovers.

On this article, I’ve recognized one such blue-chip TSX inventory, Intact Monetary (TSX:IFC), that needs to be in your watchlist proper now. Down virtually 17% from all-time highs, the TSX dividend inventory provides you a yield of two% in September 2025.

Is that this TSX inventory a very good purchase proper now?

Valued at a market cap of $47 billion, Intact Monetary offers property and casualty insurance coverage merchandise to people and companies throughout Canada, the US, the UK, and internationally.

The corporate provides private auto and property insurance coverage, in addition to business and specialty traces, pet insurance coverage, and danger administration options by way of a number of distribution channels, together with brokers, direct-to-consumer platforms, and managing common brokers.

Earlier this 12 months, Intact Monetary outlined an formidable progress technique at its investor day. The monetary providers large goals to extend working revenue per share by 10% yearly by way of 2030, whereas sustaining its monitor document of outperforming the ROE (return on fairness) throughout all working geographies.

The Canadian property and casualty insurance coverage chief demonstrated robust fundamentals, with 650 foundation factors of ROE outperformance over the previous decade, and constantly achieved mid-teens returns throughout Canada, the US, and the UK.

Administration emphasised that recurring income from funding and distribution revenue now contributes practically 10 factors of ROE earlier than underwriting operations start.

Intact’s progress framework centres on three pillars:

• Natural progress concentrating on 6% yearly
• Margin growth of roughly 2% by way of superior AI and information analytics deployment
• Capital deployment contributing over 4% by way of strategic acquisitions

Intact has deployed over 500 AI fashions throughout operations, producing $150 million in recurring annual advantages, with plans to exceed $500 million inside 5 years.

Worldwide growth stays a key driver, with the U.Ok. business traces market representing 2.7 instances the dimensions of Canada’s market, the place Intact holds solely 6% share in comparison with 25% domestically. World Specialty Traces goals to attain $10 billion in premium by 2030, concentrating on a mixed ratio of underneath 90%, leveraging the corporate’s presence throughout 70% of the worldwide specialty markets.

Administration highlighted over $20 billion in capital era capability by way of 2030, with north of $10 billion out there for mergers and acquisitions at goal leverage ratios.

The technique builds on Intact’s confirmed integration capabilities. As an illustration, it has generated roughly 20% inner charges of return on earlier acquisitions whereas efficiently exporting Canadian operational experience to worldwide markets.

Within the second quarter (Q2) of 2025, Intact Monetary reported a web working revenue per share of $5.23. Its guide worth per share rose 12% 12 months over 12 months, supported by an working return on fairness exceeding 16% for the third consecutive quarter. Income progress of 4% mirrored momentum in private traces, pushed by price will increase and a 2% improve in coverage depend.

Nevertheless, business traces confronted ongoing stress from elevated competitors in giant accounts, with premium progress of simply 1% in Canada regardless of beneficial market situations.

The corporate’s mixed ratio improved to 86.1%, indicating efficient pricing and danger choice methods, regardless of a $41 million improve in disaster losses in comparison with the prior 12 months.

What’s the worth goal for IFC inventory?

Analysts masking Intact Monetary forecast gross sales to extend from $21.66 billion in 2024 to $25.67 billion in 2027. Comparatively, adjusted earnings per share are forecast to broaden from $14.67 to $18.65 on this interval.

Right now, the TSX inventory is priced at 15.9 instances ahead earnings, which is marginally increased than its 10-year common. Due to this fact, at the same a number of, it might acquire 13% throughout the subsequent 18 months, primarily based on its earnings forecast.

A widening earnings base ought to allow Intact Monetary to extend its annual dividend per share from $4.84 in 2024 to $6.27 in 2027, indicating an annual progress price of 9%. If we regulate for dividends, the TSX inventory has returned 250% to shareholders over the past 10 years.