Recent Buy: August 4th, 2014
I added to my position in Aflac (AFL) today. Although the company recently posted better than expected earnings, it slightly decreased its forward guidance. With an already turbulent market, this dividend champion was down almost 6% from where I originally bought it in April. l purchased 24 shares for $58.55 each in my Sharebuilder taxable account, my old cost basis per share of $62.23 now decreases to $60.54. The trailing P/E was only 9.33, and my yield on this purchase is 2.53%. My total yield-on-cost for AFL increases from 2.38% to 2.44%. This purchase adds $35.52 to my 12-month forward annual dividends for a new total of$920.08.
This will likely be the last I’ll be adding to AFL for a while and even if it dips further in price, I believe I got in at a great undervalued long term cost basis. However, I am searching for another investment in the insurance sector to go alongside Aflac, possibly Chubb Corporation (CB) or Traveler’s Insurance (TRV). I’m going to try to add at least $1,400 every two weeks to my portfolio over the next few months, but if the market presents even better prices during that time, I’ll throw down even more. I would love any suggestions for more research candidates from readers.
What do you think of AFL? What is on your watchlist?