Company Overview - Aflac Incorporated (AFL) is valued at $57.6 billion and is a leading provider of supplemental health and life insurance products, primarily operating in the United States and Japan [1] - The company was founded in 1955 and is headquartered in Columbus, Georgia, known for its iconic Aflac Duck marketing campaign [1] Earnings Expectations - Aflac is expected to announce its fiscal third-quarter earnings for 2025 on November 4, with analysts predicting a profit of $1.80 per share, down 16.7% from $2.16 per share in the same quarter last year [2] - For the full fiscal year, analysts expect an EPS of $6.91, a decrease of 4.2% from $7.21 in fiscal 2024, but a rebound is forecasted with a 6.4% increase to $7.35 in fiscal 2026 [3] Stock Performance - Aflac's stock has declined by 6.3% over the past year, underperforming the S&P 500 Index's 14.1% gains and the Financial Select Sector SPDR Fund's 9.6% gains during the same period [4] - On October 14, Aflac shares rose by 1.1% after Bank of America Securities analyst Joshua Shanker reaffirmed a "Buy" rating with a price target of $130 [5] Analyst Ratings - The consensus opinion on Aflac stock is cautious, with an overall "Hold" rating; out of 17 analysts, two recommend a "Strong Buy," one a "Moderate Buy," 11 a "Hold," and three a "Strong Sell" [6] - The average analyst price target for Aflac is $108.57, indicating a marginal upside from current levels [6]

Core Insights - Aflac Incorporated (NYSE:AFL) is recognized as one of the Top 15 Growth Stocks for Long-Term Investors [1] - The company has a significant presence in the Japanese market, which is crucial for its overall performance [2] Group 1: Financial Performance - In Q2 2025, Aflac Japan reported net earned premiums of ¥254.6 billion, reflecting a 23.2% year-over-year increase in sales [2] - The growth was largely attributed to the success of the new cancer insurance product, Miraito [2] Group 2: Strategic Focus - Aflac is prioritizing innovation, product development, and the expansion of its distribution network through strategic partnerships [3] - The company aims to strengthen its distribution channels and enhance its product portfolio to meet changing customer needs [3] Group 3: Dividend Policy - Aflac is recognized as a dividend aristocrat, having increased dividends for 42 consecutive years [4] - The current quarterly dividend is $0.58 per share, with a dividend yield of 2.09% as of October 12 [4]

Core Insights - Dividend growth stocks remain attractive for long-term investors due to their potential for consistent returns and lower volatility compared to high-growth companies [1][2][3] - Companies that regularly increase dividends are perceived as financially stable and often have strong competitive positions, making them appealing to risk-conscious investors [2][3] Methodology - The article identifies 15 dividend aristocrats, companies that have raised dividends for 25 consecutive years or more, with yields above 2% as of October 12 [5] Company Highlights - **Aflac Incorporated (NYSE:AFL)**: - Dividend yield of 2.09% as of October 13, with a focus on supplemental health and life insurance, particularly in Japan [7][9] - Reported a 23.2% year-over-year increase in sales in Q2 2025, driven by a new cancer insurance product [7] - Has a 42-year history of increasing dividends, currently paying $0.58 per share [9] - **Cincinnati Financial Corporation (NASDAQ:CINF)**: - Dividend yield of 2.19% as of October 13, with a history of raising dividends every year since 1960 [10][13] - Maintains a strong presence in the US insurance industry, providing property and casualty coverage through independent agents [11] - Demonstrates solid financial discipline, with a 65-year streak of consecutive dividend increases [12][13] - **PPG Industries, Inc. (NYSE:PPG)**: - Dividend yield of 2.88% as of October 13, specializing in paints, coatings, and specialty materials [14][17] - Invested billions in acquisitions to drive growth while maintaining a balanced capital allocation approach [15] - Has increased dividends for 54 consecutive years, currently paying $0.87 per share [17]

Core Insights - Aflac Incorporated is a significant player in the insurance industry, particularly known for its supplemental health insurance products in the U.S. and cancer and medical insurance offerings in Japan [1] Group 1: Company Performance - Barclays has maintained an "Underweight" rating for Aflac, while increasing the price target to $102 from $100, despite the stock price being $112.93 at the time [2][5] - Aflac's stock has shown volatility, trading between $112.55 and $113.89, with a market capitalization of approximately $60.4 billion [4][5] - Over the past year, Aflac's stock reached a high of $115.44 and a low of $96.95, indicating fluctuations in performance [4] Group 2: Commitment to Policyholders - Aflac has introduced a grace period for premium payments for federal employees affected by the government shutdown, demonstrating its commitment to supporting policyholders during challenging times [3][5]

Core Insights - Aflac Incorporated will release its third quarter 2025 financial results on November 4, 2025, after market close [1] - A conference call to discuss the quarterly results is scheduled for November 5, 2025, at 8:00 a.m. (ET) [2] - Aflac is recognized as the No. 1 provider of supplemental health insurance in the U.S. and the leading provider of cancer and medical insurance in Japan [2] Financial Information - The company reported total revenues of $4.2 billion for the second quarter of 2025 [4] Corporate Recognition - Aflac has been included in the World's Most Ethical Companies by Ethisphere for 19 consecutive years and in Fortune's World's Most Admired Companies for 24 years [2] - The company became a signatory of the Principles for Responsible Investment (PRI) in 2021 and has been part of the Dow Jones Sustainability North America Index for 11 years [2]

Core Insights - Aflac Incorporated (AFL) is positioned for growth due to expanding sales in Japan and the U.S., a trusted brand, innovative products, strict underwriting discipline, and effective cost management [1][3][4] Sales Performance - Sales in Japan increased by 18.7% year-over-year in the first half of the year, reaching $236 million, driven by strong sales of Miraito and efforts to attract younger customers with Tsumitasu [3][9] - U.S. sales rose by 3.1% year-over-year to $649 million, with group life and disability products contributing significantly to this growth [3][9] Margin Analysis - The company anticipates pretax margins of 30-33% in Japan and 17-20% in the U.S. for 2025, with the U.S. segment achieving a 22.5% pretax margin in the second quarter due to cost-control measures [4][9] Business Resilience - Demand for supplemental insurance remains strong, as these products address coverage gaps rather than compete with traditional offerings, providing Aflac with a stable revenue stream less affected by economic fluctuations [5] Shareholder Value Initiatives - Aflac prioritized shareholder rewards, repurchasing 7.9 million shares worth $829 million in the second quarter and authorizing an additional 100 million shares for repurchase, totaling approximately 130.9 million shares remaining [6] - The company extended its dividend growth streak to 42 consecutive years in 2024, with total capital deployment reaching $2.4 billion in the first half of 2025 [6] Earnings Performance - Aflac's earnings have exceeded the Zacks Consensus Estimate in two of the last four quarters, with an average surprise of 6.6% [7] Industry Competitors - Competitors like AMERISAFE, Inc. and Globe Life Inc. are also active in the market, with AMERISAFE focusing on workers' compensation and maintaining a strong retention rate, while Globe Life benefits from steady premium income and underwriting margins [10][11]

Core Viewpoint - Aflac (AFL) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][2] Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [3] - Institutional investors often adjust their valuations based on earnings estimates, leading to significant stock price movements when they buy or sell large amounts of shares [3] Aflac's Earnings Outlook - The upgrade reflects an improvement in Aflac's underlying business, with rising earnings estimates expected to drive the stock price higher [4] - For the fiscal year ending December 2025, Aflac is projected to earn $6.86 per share, with a 1.9% increase in the Zacks Consensus Estimate over the past three months [7] Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks which have averaged a +25% annual return since 1988 [6] - Aflac's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [9]

Aflac Incorporated (NYSE:AFL) is included among the 11 Cheap Quarterly Dividend Stocks to Buy Right Now. Aflac Incorporated’s (AFL) Dividend Growth History and its Place in Cheap Quarterly Dividend Stocks Aflac Incorporated (NYSE:AFL) is an American insurance company, and its main business focuses on supplemental health and life insurance. It is especially recognized for policies that provide cash benefits directly to policyholders, such as cancer, medical, and accident coverage in Japan, and accident, c ...

Industry Overview - The Zacks Accident and Health Insurance industry is expected to benefit from increased underwriting exposure, with companies like Aflac, Trupanion, and Globe Life likely to be driven by prudent underwriting standards [1] - The industry has maintained profitability due to solid reserves, prudent claims management, stable loss trends, and fewer claims, although a softer performance is predicted for 2025 [2] - The global workers' compensation insurance market is projected to grow significantly between 2024 and 2032, driven by rising awareness of the benefits of coverage [3] Trends Impacting the Industry - Pricing pressure is anticipated to continue due to inflation, rising medical costs, and demographic changes, with healthcare spending expected to increase by 5.4% annually through 2028 [4] - Claims frequency is improving due to better safety measures and working conditions, which is expected to enhance the industry's performance [5] - The adoption of technology, including AI and data analytics, is accelerating, potentially reducing workers' compensation claim expenses by about 45% [6] Industry Performance - The Zacks Accident and Health Insurance industry currently holds a Zacks Industry Rank of 227, placing it in the bottom 7% of 251 Zacks industries, indicating weak near-term prospects [7][8] - The industry has underperformed compared to the Finance sector and the Zacks S&P 500 composite, with a year-to-date gain of 4.5% compared to 12.2% and 10.1% respectively [11] Current Valuation - The industry is trading at a trailing 12-month price-to-book (P/B) ratio of 1.82X, significantly lower than the Zacks S&P 500 composite's 8.42X and the sector's 4.26X [14] Company Highlights - **Aflac**: Offers voluntary supplemental health and life insurance products, with a focus on strategic growth investments and digital solutions. The consensus estimate for 2025 earnings indicates a decrease of 5.3%, but an increase of 7% is expected for 2026 [19][20] - **Trupanion**: Provides pet insurance in a large but underpenetrated market, with a consensus estimate for 2025 earnings indicating a 252.2% increase. The company has a Growth Score of A and has seen significant upward revisions in earnings estimates [23][24] - **Globe Life**: Offers individual life and supplemental health insurance, with positive revenue trends driven by premium growth. The consensus estimates for 2025 and 2026 earnings indicate increases of 15.8% and 5.4% respectively [27][29]

Core Insights - Aflac is launching its 2025 college football campaign featuring the Aflac Duck, Coach Nick Saban, and Coach Deion "Coach Prime" Sanders to address the issue of medical debt for Americans [1][2][4] - The campaign aims to educate fans on how to manage medical expenses that traditional health insurance may not cover, with the Aflac Duck taking on the role of "Commissioner of Coverage" [2][5] - Aflac's marketing strategy includes two new commercials and a social media series, enhancing brand awareness and connection with consumers [4][5] Company Overview - Aflac Incorporated is a Fortune 500 company and the leading provider of supplemental health insurance in the U.S., with a strong presence in Japan as well [6] - The company has been recognized for its ethical practices and sustainability efforts, being included in the World's Most Ethical Companies for 19 consecutive years and Fortune's World's Most Admired Companies for 24 years [6] - Aflac's commitment to corporate social responsibility is evident through its signatory status with the Principles for Responsible Investment and its inclusion in the Dow Jones Sustainability North America Index for 11 years [6]