In addition to a very favorable macro environment, there is a gradual improvement in regard to underlying fundamentals within the life insurance industry. Balance sheets remain strong and cash flow is improving, which can dictate a higher valuation and should ease investor concerns that might have previously existed.
Many companies within the industry are generating a healthy cash flow that will allow them to continue returning capital to shareholders; this more »
Health insurance providers are facing an uncertain time due to the onslaught of ObamaCare, which is expected to hit the speedway in 2014. The effect that the new health plan will have on insurers is largely unknown, but I suspect there will be increased administration costs due to heavy government regulation. That regulation could call for lower insurance premiums, but there could also be additional people looking for insurance. Let more »
I've been bullish on Aflac (NYSE: AFL) since last summer, when the stock had been beaten down in response to the European debt crisis. Since that time shares of AFL have rallied more than 35%, though I believe the stock is still trading at a significant discount to fair value.
Last week, Aflac reported Q2 earnings that beat analyst estimates and reflected the benefits of the company more »
It seems like just yesterday that the entire financial system in the United States was brought to its knees, in large part by American International Group (NYSE: AIG). The embattled insurer’s risky bets on mortgage-backed securities and other complex derivatives necessitated a massive, unprecedented intervention by the U.S. government.
It’s been five years since the 2008 bailouts, and to mark the occasion, AIG announced its first return more »
You may have read in the news lately about the US dollar being "strong." When the US dollar is strong, it has favorable exchange rates on foreign currencies. We will examine how the rising value of the dollar has impacted certain stocks, resulting in some possible buying opportunities.
Some companies are based in the United States, but do a lot of international business. When it comes time to submit earnings more »
Financial stocks have been fantastic bets throughout the recovery, but some look to have more room to run than others.
The Financial SPDR ETF (NYSEMKT: XLF) is up 23% year-to-date. Over the course of the past year, it has outperformed the broader market by a whopping 16 percentage points. Even though the financials have been one of the hottest sectors of the first half of 2013, there is still value more »
Call me an optimist, but it seems like the market isn’t giving enough credit to AFLAC's (NYSE: AFL) management. At the present time, this company that has historically grown both earnings and its dividend and an admirable pace is selling for a lower forward P/E ratio then several of its competitors. Concerns over the company’s exposure to the Yen, and questions about the company’s ability more »
Successful companies in the insurance industry have the flexibility to provide shareholders the increasing stream of profits and dividends that most investors love. For investors looking to gain exposure to the financial services industry who may be wary of buying stocks in banks, insurance companies should be on your watch list.
Specifically, there’s one insurance company with a financial track record that stands above the rest. Supplemental insurer AFLAC more »
After digesting the government data concerning jobs, which was seen as a positive with June non-farm payrolls reported at 195,000 versus the consensus estimate of only 165,000, stocks rallied significantly. The Federal Reserve's plan to taper may be coming sooner than later-- especially if an increase in added jobs becomes a reoccurring and frequent thing. This will likely keep rates on the upward trend.
Insurers make a more »
AFLAC (NYSE: AFL)
- 1932 Wynnton Road, Columbus, GA 31999 USA
- Telephone: (706) 323-3431
- Website: www.aflac.com
- Accident & Health Insurance
- Public Company
- Founded in 1955
- Employees: 8,965
- Revenue: 25.19 billion
- Net Earnings: 2.97 billion
- Per Share Earnings: $6.33
- Ten-Year Average Annual Growth for Per Share Earnings: 16.72%
- Per Share Book Value: 33.33
- Market Price: $57.16
- Dividend/Yield $1.40 more »
American insurers not only need to increase customers by selling more policies, but also need to earn from their investments. A fluctuating underwriting and weak investment yield boost financial and operating risks. Although the pricing environment and industry demand has witnessed some improvement, the new policies the Fed will execute will certainly impose changes in the asset allocation of these firms. Which insurance companies will better handle this new context more »
Everybody loves "easy" money. We can't help it. The good news is that when you are a shareholder of a dividend-paying company, you get paid for your stake in the company. You might get paid annually, semi-annually, every four months, or sometimes monthly. It doesn't matter as dividends are paid for simply waking up every morning. Don't under estimate the power of dividends, the graph below shows more »
This is part 2 (click here to view part 1) of a series of articles on companies within the dividend achievers index that I consider to be the "best of the best." This index contains approximately 200 companies that include some of the best dividend-paying opportunities in the U.S.
In order for a company to be included in this index, it must increase its annual dividend for a minimum more »
According to a research by MarketLine, the global insurance sector is expected to reach $5.1 trillion in 2015. This growth will be mainly driven by the recovery in developed countries like the U.S. The companies within this sector foresee growth opportunities through focusing on products with new insurable risk, international expansions, and regulatory changes. I have analyzed three companies from the industry and observed how they are framing more »
Investors are always looking for new strategies to beat the market over time and build wealth to ensure their financial futures. Unfortunately, many investors get caught in overly complex investment strategies that end up losing them money over the long-term. One time-tested strategy that is both simple and extremely effective is the concept of dollar-cost averaging.
For buy-and-hold investors who understand the merits of slow-and-steady investing and the amazing power more »
Investing in dividend stocks may help grow your retirement fund, but there are risks, as well. After all, every investment comes with risk. However, you can minimize the risk if you set the criteria for your investment. These filters can help create a safety net for your investment.
There are many parameters used by many investors when investing in the quite volatile stock market. This includes the market capitalization, the more »
Legg Mason Capital is a publicly traded mutual fund, overseeing some $3.8 billion. The fund was founded by Ernie Kiehne and Bill Miller in the early 80s. Outlined below are some of the key takeaways and interesting moves that caught my attention in Legg Mason's recent SEC filing that revealed its public-equity holdings (see Legg's portfolio here).
Dumping the duck
Legg Mason sold off its entire stake more »
Steven Check, the founder and Chief Investment Officer (CIO) of Check Capital Management, relies on financial stocks, with the fund heavily invested in Wells Fargo (NYSE: WFC) and Berkshire Hathaway (NYSE: BRK-B). Management has made additions to their holdings in Wells Fargo and Wal-Mart (NYSE: WMT). Let us take a look at how the five biggest positions in Check Capital Management's equity portfolio have done in 2013, and where more »
Approximately 40 percent of the total returns of the stock market going all the way back to 1930 have come from dividends. Dividends consistently paid out indicate that a company’s stock is a good investment--this represents one of the very few universal truths in investing. Investors who focus on buying consistent dividend-paying stocks are able to make it through stormy years of ups and downs in the market. In more »
When looking for solid dividend-paying stocks, Aflac (NYSE: AFL) should be on every investors list. This Dividend Aristocrat also happens to be rather cheap.
The list of Dividend Aristocrats include companies that have raised their dividend payouts to shareholders every single year for at least a quarter-century -- this exclusive list only includes a few dozen stocks. Aflac upped its dividend payment by 6.1% in late 2012, marking the 30th more »
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