Next Stock Purchase – Aflac (NYSE: AFL)

My next stock purchase will be an insurance company, Aflac – ticker AFL.  The company is an insurance powerhouse in Japan and the United States providing supplemental medical and other insurance products.  Aflac has powerful brand awareness within Japan and most of its revenue comes from the Japanese market.  Living in Japan, I can attest to the brand’s popularity.

The company pays a moderately decent dividend of 2.3% and has a P/E of a little over 10.  This is considered a value stock and because of the dividend and low P/E, I feel the downside risk is lower relative to the overall market.

Aflac has a Motley Fool CAPS rating of 4 out of 5 stars.  Sales and profits have been rising at a healthy clip for many years and they have a strong investment portfolio.  Also, with the recent dip in the stock price due to the Japan crisis, I feel now is a great opportunity to buy.  It is also one of S&P 500 stocks with the biggest gap between market price of $52.65 per share versus analyst estimate price of $65.77 per share.  If the analyst are to be believed, I would be getting this stock at about a 20% discount, not too shabby.  In the meantime, as I wait for the market to catch up with the true value of the company, I can continue collect my 2.3% annual dividend.

Advertisements

About runninginspired

I’m in my mid-40s and have been running for about 19 years. I have finished 24 marathons with a personal best time of 3:04. I currently reside in San Diego, CA. I enjoy running since it keeps you honest and will give back what you put into it. Work hard, but smart, and good results will eventually follow. I like to experiment with training plans, gadgets, shoes, and nutrition to find what works for me. The primary purpose of this blog is to document my training and thoughts about running in my ongoing quest to improve my fitness and health.
This entry was posted in Investing, Stock Picks and tagged , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s