3 Reasons to Hold On to Aflac's Stock

Aflac has a decent valuation, a solid balance sheet, and a well-covered dividend with room to continue growing.

Chuck Saletta
Chuck Saletta
Apr 21, 2014 at 5:33PM
Investment Planning

AflacĀ (NYSE:AFL) is a selection for the real-money Inflation-Protected Income Growth portfolio. In this brief video, portfolio manager Chuck Saletta offers three reasons he's holding on to Aflac's stock despite its 16% increase since he bought those shares in February 2013.

Summary:

  1. Aflac's market capitalization is somewhat below the iPIG portfolio's fair-value estimate.
  2. Aflac sports a solid balance sheet with a debt-to-equity ratio around 0.7, which suggests the company should have little trouble rolling over its debt in the near future.
  3. Aflac has a healthy, well-covered dividend with recent growth and room to continue growing as the company does.

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