Is AFL a good stock to buy? We came across a bullish thesis on Aflac Incorporated on Trevor Young’s Substack. In this article, we will summarize the bulls’ thesis on AFL. Aflac Incorporated’s share was trading at $114.67 as of April 20th. AFL’s trailing and forward P/E were 16.81 and 14.53 respectively according to Yahoo Finance.
Aflac, Inc. (AFL) stands out as a “Dividend Fortress” in the insurance sector, combining stability, growth, and innovation. The company is a leader in supplemental health insurance, providing financial support for expenses that standard insurance doesn’t cover, such as rent or groceries during illness. This business model is inherently resilient, offering predictable cash flows even in volatile economic conditions. Aflac also benefits from significant geographic diversification through its substantial presence in Japan, further enhancing stability.
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For long-term, risk-averse investors, the dividend track record is particularly compelling: as of February 2026, Aflac has increased its dividend for 43 consecutive years, including a 5.2% hike this quarter. This demonstrates the company’s ability to maintain shareholder returns through recessions, market crashes, and global disruptions. While the current dividend yield is approximately 2.1%, the real strength lies in its consistent growth, with a 10-year average dividend growth rate of roughly 12%, supported by a comfortably low payout ratio of around 34%.
Financial metrics such as a 16% return on equity, averaging 17% from 2020–2024, highlight the company’s strong profitability and capital efficiency. Beyond its traditional strengths, Aflac is integrating AI through initiatives like the Workday Wellness Partner Program, using technology to simplify benefits management and improve customer experience.
Overall, Aflac offers a compelling combination of steady income, long-term dividend growth, and strategic innovation. Its resilient business model, proven shareholder returns, and disciplined capital management make it a reliable choice for investors seeking stability with moderate growth, positioning AFL as a defensive yet evolving player in the insurance landscape.
Previously, we covered a bullish thesis on Aflac Incorporated (AFL) by Pacific Northwest Edge in April 2025, which highlighted its resilient insurance operations, disciplined share buybacks, steady dividends, and geographic diversification in Japan. AFL’s stock price has depreciated by approximately 2.61% since our coverage. Trevor Young shares a similar view but emphasizes long-term dividend growth, AI adoption, and consistent profitability, adding a perspective on innovation.
Aflac Incorporated is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 51 hedge fund portfolios held AFL at the end of the fourth quarter which was 42 in the previous quarter. While we acknowledge the risk and potential of AFL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AFL and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
