Dividend-Paying Value Stock Hits New High

It's an all-time high for Aflac, a supplemental health insurer

Author's Avatar
Feb 06, 2022
Summary
  • Stock has low price-earnings ratio.
  • The company just hiked its dividend.
  • It just beat Wall Street's earnings expectations.
Article's Main Image

It’s an insurance stock. It’s a member of the Standard & Poor’s 500 index. It pays a dividend. And it just hit a new all-time high.

Aflac Inc. (

AFL, Financial) is having a good run. The low price-earnings ratio of 10.49 is substantially lower than the price-earnings ratio of the market as a whole, which now comes in at 37.18 according to Shiller.

The New York Stock Exchange-listed equity trades at just 1.29 times its book value. Compare that to the average book value of an S&P 500 stock now at 4.58.

Other key metrics are indicating value as well: the price-sales ratio is just 1.88 and the price-to-free cash flow is 9.03.

1489992707106480128.png

Aflac’s earnings per share this year increased at a 50.70% pace, beating Wall Street's expectations for the fourth quarter. Earnings per share growth over the past five years is up by 17.90%. Shareholder equity greatly exceeds long-term debt.

Investors are paid a $1.60 per share dividend for an annualized yield of 2.47%. Aflac just hiked the dividend amount after reporting strong quarterly earnings on Friday.

Average daily volume is 3.27 million shares, making it a highly liquid stock and thus accessible to large institutional funds and investor who might require that.

The GuruFocus summary of its financials finds one good sign and six medium warning signs:

1489993057041457152.png

The company’s market capitalization is $42.19 billion with an enterprise value of $44.04 billion. Aflac’s main competitors in the insurance business are heavyweights: MetLife (NET), Prudential Financial (

PRU, Financial), Lincoln National (LNC, Financial), Globe Life (GL, Financial) and Primerica (PRI, Financial), among others.

Legendary hedge fund managers

John Hussman (Trades, Portfolio) and Paul Tudor Jones (Trades, Portfolio) added to their existing positions in Aflac during 2021’s third quarter. This is a sign of confidence in the stock by those with a history of careful and thoughtful portfolio construction for the long term.

Aflac focuses on supplemental health insurance, a form of additional coverage for out-of-pocket expenses not necessarily covered by a major medical insurance policy.

Also check out: (Free Trial)

» Take a Free Trial of Premium Membership

Disclosures

I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours. Click for the complete disclosure
Rating:
0 / 5 (0 votes)
Author's Avatar
WRITTEN BY

GuruFocus Screeners

Related Articles