As a dividend investor, I’m constantly looking for new opportunities and dividends to invest in. This time, my digging has brought me to a company that’s been around for over half a century. It’s an insurance company that has a solid and consistent track record and after being on my radar for some time now, I’ve finally decided to take a position in it.
In my next batch of purchases, I will be investing in the most annoying duck that has ever been on commercials… Aflac.
Like I said before, this company deals with insurance and right now, people need insurance more than ever. With the current political landscape, our healthcare system isn’t going to be upended anytime soon contrary to what some news outlets might think. But taking the politics out of the equation, let’s look at the financials to see what makes Aflac such an attractive buy as a Dividend Aristocrat.
FINANCIALS
With a current share price of $36.58, Aflac is an easy investment to grab shares in. It currently offers a strong yield of 3.05% and it gives investors a quarterly dividend of $0.28 per share. What I really enjoy with this investment is the fact that it’s a Dividend Aristocrat. It has been consistent in growing it’s dividend for the past 38 years! With a 10 year growth rate of 6.79% Aflac really values the dividends it pays out to investors and it’s growth is very important to them.
What is even more stunning is how safe the dividend is. It’s current Payout Ratio is an incredible 23.88% While normally, I value companies that are within the 40-60% range, this company has shown that it is very consistent in the dividend growth and to a dividend investor like myself, this is a perfect opportunity to get into.
To top it all off, it’s current Price to Earnings Ratio is 9.46! This is just further proof that this dividend is so safe, that they have plenty of room to grow it more in the future and every increase in the dividend for an investor like me is essentially just a raise in the income I receive every quarter.
Conclusion
So there you have it. A Dividend Aristocrat such as Aflac has been on my radar ever since I started this journey 3 months ago. After all the research that I’ve done myself along with other blogs that I’ve read on the company, I feel like Aflac is going to be a terrific addition for my personal portfolio. I haven’t purchased shares yet, but will be doing so at the end of the month and I will be updating my portfolio when I do.
Thank you so much for reading my take on Aflac. I hope you found it informative so you can have a starting point if you want to research this company. I’m ending this post on that note and I’ll catch you on the next one!
Marcus