If it looks and quacks like a duck, it is a great stock

We mostly know AFLAC (AFL) from its TV ads.  They have done a brilliant

job branding the company.   That it is rooted in red-dirt Georgia with

Southern flavor and drag is less well known.  But one has to forgive the Southern in them when one looks closely at the company.  It is a great stock to own, a strong international play, and a decent dividend stock to boot.

For one thing, it has recently been named one of the most innovative

corporations using business technology -- specifically introducing an voice activated on demand application that shaves weeks off claim processing.  

Add to that that they have consistently delivered solid returns on invested capital – with a 5 year average of 13.4%.  Last year, it was 15.8%

And, the company also offers a great play on Japan.  Not only is it the number one provider of guaranteed-renewable insurance in the United States, but it is the number one insurance company in terms of individual policies in force in Japan.  In fact, Japan is and always has been a major part of its business, protecting the company from sector shifts in this country.

The best part is that it has a current dividend yield of about 1.50% -- on the surface not bad but not great.  Not great until you realize that dividend growth has been superb -- a 9 year growth rate of 19.9%    With only a 15% growth rate, the dividend doubles every 5 years!

In all, this is an awfully good company.  I own the stock and have for years.  In 17 years, my position has grown 15 fold.  This year the spread between AFL’s high and low has been 38.5%, and it is at its high now.

Its consistent and strong growth, a Japan play, and an impressive dividend growth all make ALAC a strong, long holding.