After watching and reviewing Aflac, Inc. (AFL) for the past month and a half, today I purchased 30 shares for $1,501.65, including transaction fees, giving me a cost basis of $50.06 per share. This purchase gives me an additional $42.00 in annual dividends, increasing my projected forward 12-month dividends from $887.08 to $929.08. Given that my only current financial holding is a bit speculative (Prospect Capital Corp – PSEC), this will add some much needed diversity. Unfortunately, with the market swelling during the past three months, many opportunities appear to be overvalued right now.
Part of what has attracted me to AFL is the low payout ratio, the dividend growth champion status, and the reasonable valuation. I believe that AFL has plenty of room to increase their dividends over the next few years.
A quick business summary from Bloomberg:
“Aflac, Inc. is a general business holding company. The Company, through its subsidiaries, provides supplemental insurance to individuals in the United States and Japan. Aflac’s products include accident/disability plans, cancer expense plans, short-term disability plans, sickness and hospital indemnity plans, hospital intensive care plans, and fixed-benefit dental plans.”
I have updated my Investments page with this transaction.