Aflac Incorporated — A Cheap Inflation Beater

Boring is good. At least when it comes to investing.

And Aflac Incorporated ($AFL) is the perfect example of this.

This is a dependable company with a great balance sheet, low valuation, and steadily rising dividend that outpaces inflation. Despite all its positive qualities, Aflac gets almost no media attention.

Today’s article examines what this unloved gem does — and why boring, “sleeper companies” can be fantastic buy and hold investments.

What Does Aflac Incorporated Do?

Aflac is an insurance company that specializes in supplemental policies.

Supplemental insurance policies typically cover outlier events like short-term disabilities, dental procedures, and accidents.

Aflac is one of the biggest players in this space.

While insurance may not sound like the most exciting business, well-run insurance companies are absolute money-printers. This is due to the fact that customers pay a monthly premium, and insurance companies can invest a portion of this money for themselves.

Well-run insurance companies use this opportunity to create massive investment portfolios, “on the house.”