Aflac, Inc. (NYSE:AFL)

Good insurance comapny

http://www.aflac.com

Great ads and people need insurance especially in these times.

Steady dividend grower and conservatively well managed portfolio

solid financials, reasonable risk

nice float, dividend, potential.

No brainer value play. Low PE, trailing, lower forward, dividend 2.7% with low payout ratio.

Top 25 pick

low p.e, great profits, decent growth, and decent financial health

Nibble here, 2.8% divy and growing.

Insurance + Dividend + Graham

Aflac's business model will trump short term market volatility.

I've owned the duck for a year or so, when it dropped I bought 100 shares, now I have 104.5 shares with dividends reinvested :o) A lot of investors sell on news, earnings were strong and guidance is good with reinvestments leading to less exposure on the European front. They are impacted by the yen's value, but this is a strong company, it is making money and it is a dividend king. I'm in today for another 99 shares and will rest easy knowing I own a strong brand name in my portfolio, at the top of their game.

Unedited excerpt from a CAPSCall article anticipated for publication on 31-JAN-2013:

The next selection for the Inflation-Protected Income Growth Portfolio is supplemental insurance giant Aflac (NYSE: AFL). Best known for the accident prone duck that is its mascot, Aflac is a powerhouse in supplemental insurance in the US and the number one writer of individual insurance policies in Japan.

And in spite of the tsunami-induced nuclear meltdown that devastated Japan in 2011, Aflac managed to continue its string of increasing dividends, which has now reached 30 consecutive years. Any insurance company capable of (literally) riding out a storm like that and coming out largely intact has a solid foundation. Combine that with that growing and well-covered dividend, and it earns a place in this real money portfolio.

Charles schwab screener A+ Low P/E Low PEG < 1

The recent tumble coincides with a JP Morgan downgrade to neutral from overweight, which, frankly, is a kick in the teeth to investors by steering them away from the stock. Citing continued low interest rates that will limit stock growth, the analyst falls into the WHAT IS HAPPENING RIGHT NOW trap and tries to pull everyone else down on top of them. It ignores the fact that AFL continues to grow, ignores the stock's eye-poppingly cheap valuation (PE under 9 with projected earnings growth, and that's AFTER rising around 20% last year), and ignores the fact that low interest rates are not going to last forever (interest rates being part of what really drives earnings growth at AFL--imagine what it will be worth if/when interest rates recover!).

Okay, that last bit is an assumption, and I suppose it's possible we could remain above 6.5% unemployment forever or the Fed could renege on its promise to stop buying treasuries. But that's a big assumption.

I confess I own AFL, but I'm not disappointed the price is dropping. As a long-term investor hunting for great stocks, this sort of bungling is exactly what you look for. I am astounded the price is dropping, however, and annoyed that the drop might have something to do with an asinine downgrade founded on weak analysis and guesswork (e.g., the stock has already risen X%, it can't keep rising...) that makes the call seem stupid.

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.

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S&P STARS Ranking: = 5 stars (5 is the highest rank out of 5)
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S&P Fair Value Ranking: = 5 (5 = undervalued, 1 = overvalued)

This duck should quack in 2013!!!