Why Aflac Is Poised to Outperform
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, insurance giant Aflac has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Aflac and see what CAPS investors are saying about the stock right now.
Aflac facts
Headquarters (founded) | Columbus, Ga. (1955) |
Market Cap | $24.3 billion |
Industry | Life and health insurance |
Trailing-12-Month Revenue | $24.8 billion |
Management | Chairman/CEO Daniel Amos |
Return on Equity (average, past 3 years) | 19.3% |
Cash / Debt | $3.0 billion / $11.0 billion |
Dividend Yield | 2.7% |
Competitors | AIG MetLife Prudential Financial |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 96%of the 2,016 members who have rated Aflac believe the stock will outperform the S&P 500 going forward.
Just last week, one of those Fools, adamlevy, succinctly summed up the bull case for our community:
As a leading life insurance provider in Japan, Aflac has a couple of great advantages over its peers that solely operate domestically. First, Japanese customers are extremely loyal. With 21 million life insurance policies in Japan, Aflac has the social proof necessary to attract new customers that will stay with them forever. Second, Japanese regulation keeps competition low and margins high.
Oh yeah, they also pay out a really nice dividend that ought to continue increasing (just as it's done for the last 29 years ) because the payout ratio is less than 25%, the company is accumulating cash, and profits are growing equally as well.
If you want market-thumping returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite a strong four-star rating, Aflac may not be your top choice.
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The article Why Aflac Is Poised to Outperform originally appeared on Fool.com.
Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Aflac and American International Group. The Motley Fool owns shares of American International Group, and has the following options: Long Jan 2014 $25 Calls on American International Group. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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