Tuesday, December 17, 2013

Aflac, Inc. Preferred Stock Redefines Long-Term Income Investing

Aflac, Inc. (AFL), a U.S. supplemental insurance company with a $30+ billion market capitalization, is well known for its very clever duck commercials. Aflac offers one exchange-traded debt security (ETDs) for consideration by preferred stock investors. Trading under the symbol AFSD, the security boasts double investment grade ratings (Baa1/BBB) and offers a 5.5 percent coupon.

In the U.S., Aflac's strategy of offering supplementary insurance has allowed them to, at least for now, sidestep much of the teeth-gnashing that has consumed primary health insurance providers over the troublesome Affordable Care Act. And in Japan, being a supplementary coverage provider has allowed them to do a mega-deal with Japan Post. Because of that deal, Aflac now insures one out of every four households in Japan...

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