Aflac(AFL) The Motley Fool·2025-03-26 22:14Core Investment Insights - Investing in dividend-paying stocks is a strategy for building long-term wealth, as these companies often have strong business models and prudent capital management [1] - Over five decades, dividend-paying stocks have delivered an average annual return of 9.17%, significantly outperforming non-dividend payers at 4.27% [2] - Companies that initiate or grow their dividends have returned even better, with an average return of 10.19% [2] Company Analysis: Chubb - Chubb operates in 54 countries, providing a wide range of insurance products including property and casualty, personal accident, and life insurance [4] - Berkshire Hathaway has invested in Chubb, purchasing 27 million shares, making it the ninth-largest holding in Berkshire's U.S. stock portfolio [5] - Chubb's combined ratio has averaged 90.6% over the past 22 years, well below the industry average of 99.7%, indicating strong underwriting ability [8] - The company recently approved a 6.5% increase in its dividend, marking the 32nd consecutive year of dividend growth [8] Company Analysis: Aflac - Aflac offers life and supplemental insurance plans, facing challenges during low interest rates and the COVID-19 pandemic [9][10][11] - The stock has increased by 85% since 2022 due to improving claims costs and rising interest rates [11] - Aflac raised its dividend payout by 16%, extending its 42-year history of dividend growth [12] Company Analysis: Cincinnati Financial - Cincinnati Financial has a strong history of rewarding investors and solid underwriting performance [14] - The company grew its earned premiums by 12% to 1 billion [15] - Cincinnati Financial announced a 7.4% increase in its dividend payout, achieving a 65-year streak of annual payout increases [15]