Aflac is a supplemental insurance company (popularized by the loud Aflac duck) with roots going back to 1955 covering numerous workplace offerings, such as accident, short-term disability, and life insurance.
The pandemic has done a number on insurers, and AFL shares remain down by more than 10% over the past year. Analysts’ consensus recommendation on the stock is ‘Hold.’ Investors should be heartened by Aflac’s ability to increase both revenue and earnings during the fourth quarter ended Dec. 31. And they shouldn’t have to fret about the dividend.
The payout is a highly conservative 12% of profits, for one thing. And in November 2020, Aflac lifted its quarterly dividend for the 39th consecutive year, this time by a whopping 17.9% to 33 cents per share.
Though Aflac Incorporated might be a good choice for value investors, there are plenty of other factors to consider before investing in this name. The company’s recent earnings estimates have been encouraging. The current year estimate witnessed six upward revisions in the past sixty days compared to no downward revision. The full-year 2022 estimate saw two upward revisions compared to no downward revision in the same period.