10 Undervalued Dividend Aristocrats to Buy According to Hedge Funds

6. Aflac Incorporated (NYSE:AFL)

Dividend Yield as of December 23: 2.26%

Number of Hedge Fund Holders: 32

P/E Ratio: 15.26

Aflac Incorporated (NYSE:AFL) offers supplemental health and life insurance products. The company operates in two segments – Aflac Japan and Aflac US. The Aflac Japan segment provides cancer, medical, nursing care, work leave, and various life insurance products, along with saving-type insurance plans. The Aflac US segment offers a range of insurance products, including cancer, accident, disability, critical illness, and long-term care insurance, among others.

Aflac Incorporated (NYSE:AFL) reported a loss of $0.17 per share for Q3 2024, mainly due to the negative impact of foreign exchange losses from the strengthening yen. However, adjusted earnings increased by 17.4% to $2.16 per share. Year-to-date earnings per share were $6.23, with a 13.5% increase in adjusted earnings per share to $5.64.

The company saw solid sales growth in Japan, driven by the launch of Tsumitasu, a product combining asset formation with nursing care, and a 12.3% year-over-year increase in sales. In the US, Aflac achieved a 5.5% increase in sales, with strong growth in Group Life and cancer insurance. Aflac also reported a 20.8% pre-tax profit margin for the quarter. The company repurchased $500 million in shares during the quarter. Despite challenges like remeasurement gains impacting ratios, Aflac’s solid performance and strategic investments ensure its long-term growth trajectory.

On December 2, Aflac Incorporated (NYSE:AFL) announced that its Board has declared a first-quarter dividend of $0.58 per share, payable on March 3, 2025, to shareholders on record as of February 19. This dividend marks a 16% increase from the fourth quarter dividend. Aflac has a 42-year history of consecutive dividend increases, making it one of the best dividend aristocrat stocks to buy.

32 hedge funds tracked by Insider Monkey in the third quarter of 2024 held stakes in Aflac Incorporated (NYSE:AFL), up from 25 funds in the earlier quarter.