Should I buy Aflac stock in 2025?

Why trust HelloSafe?

At HelloSafe, our expert has been tracking Aflac’s performance for over three years. Every month, more than a million users in the United States trust us to analyze market trends and identify the best investment opportunities. Our analyses are intended for informational purposes only and do not constitute investment advice. In line with our ethical charter, we have never been, and will never be, compensated by Aflac.

What is Aflac?

How much is Aflac stock?

The price of Aflac stock is falling this week. AFL closed at $103.52, down 4.75% over the past 24 hours and 4.09% lower for the week. The company’s market capitalization stands at $56.5 billion, with an average daily volume of 2.11 million shares over the past three months. Aflac trades at a P/E ratio of 10.78 and offers a dividend yield of 2.24%. The stock’s beta is 0.73, signaling it’s less volatile than the broader market. While recent results brought a pullback, AFL’s steady dividends and defensive profile may appeal to investors seeking stability in uncertain times.

Our full analysis on Aflac stock

Having rigorously reviewed Aflac’s latest financial results and scrutinized its stock performance through the lens of the past three years, our analysis integrates a proprietary model utilizing comprehensive financial indicators, technical signals, real-time market data, and a competitive landscape scan. This multi-dimensional approach provides a confident and forward-looking perspective on Aflac’s positioning in the robust life and supplemental insurance sector. So, why might Aflac stock once again become a strategic entry point into the insurance and financial services market in 2025?

Recent Performance and Market Context

Aflac (NYSE: AFL) has shown remarkable resilience and consistency, advancing +24.4% year-over-year to a recent close of $103.52 as of May 1, 2025. This ascent sets Aflac noticeably ahead of most insurance peers and underscores its defensive appeal amid ongoing market volatility. While the past week and past 24 hours witnessed modest declines (-4.1%, -4.8% respectively), this short-term pullback follows a period of pronounced outperformance, creating, in our view, an intriguing reset for opportunistic investors.

Several catalysts underpin this favorable context:

• Robust U.S. employment and persistent wage growth support insurance product demand, especially supplemental health and group products—areas where Aflac leads.
• Stable, low beta (0.73) protects Aflac’s price during broader market swings, while the insurance sector’s defensive character attracts capital flows in uncertain times.
• Macro backdrop: The 2025 market landscape is marked by heightened demand for risk mitigation products, and Aflac’s diversified geographic footprint (Japan and US) allows balanced participation in two of the world’s most developed insurance markets.

In summary, though Q1 earnings triggered some near-term volatility, the underlying momentum and favorable sector tailwinds reinforce Aflac’s status as a portfolio cornerstone—particularly with the stock trading below its recent highs.

Technical Analysis

From a technical standpoint, Aflac presently exhibits a compelling setup for potential buyers:

• Relative Strength Index (RSI-14) stands at 53.77, confirming a neutral state—neither overbought nor oversold—thus presenting room for further upward movement should buying interest rekindle.
• MACD (12,26,9) positive at 0.19 indicates ongoing bullish momentum, with a fresh buy signal generated as the MACD line is trending above the signal line.
• Moving averages tell a nuanced story: The stock price sits above the shorter-term 20-day and 200-day moving averages, both of which now serve as strong underlying support levels (with the 20-day at ~$102.80). The 50-day and 100-day moving averages rest slightly above the current price, highlighting a zone of technical resistance that, if surpassed, could trigger a new leg higher.
• Support and resistance levels: Immediate support is found at $103.10, with interim resistance at $106.54 and major resistance at the 52-week high of $115.50.

In aggregate, these indicators point to a phase where the stock is consolidating after a healthy run—often a precursor to renewed bullish action, especially as strong support is being tested.

Fundamental Analysis

Aflac’s business fundamentals remain exceptionally robust, painting a picture of durability and shareholder focus:

• Attractive valuation: The stock is trading at a trailing P/E of 10.78, below both its historical average and the market average, signaling an opportunity to access a premium franchise at a compelling valuation.
• Earnings quality: While GAAP net earnings dipped in Q1 on the back of net investment losses (a largely market-driven, non-core impact), adjusted operating earnings were a resilient $906 million ($1.66 per share), reflecting only a modest -5.7% decline year-on-year—and preserving Aflac’s margin leadership.
• Revenue trends: Aflac’s Japan operations saw +12.6% sales growth, supercharged by new product rollouts (e.g., cancer insurance). The U.S. unit delivered +3.5% sales growth in group products, further diversifying revenue streams.
• Dividend strength: The annualized forward dividend now stands at $2.32 (yielding 2.24%), with management lifting the quarterly payout by 16% and extending a 42-year streak of consecutive dividend hikes.

Structurally, Aflac continues to leverage its U.S. leadership in supplemental health products and its Japanese dominance in cancer and medical insurance. With formidable brand strength (“Aflac Duck”), high persistency rates (93.8% Japan, 79.3% US), and a durable ability to generate surplus capital (shareholder equity: $26.3 billion), the group’s foundation for earnings and dividend growth looks as secure as ever.

Volume and Liquidity

Market confidence in Aflac is underscored by:

• Sturdy liquidity: Average daily trading volume is robust at 2.11 million shares, ensuring deep market liquidity—even for sizable institutional portfolios.
• Share repurchases: The company has actively returned capital, buying back $900 million in shares during Q1, with another 38.8 million shares still authorized for future repurchase. This creates a dynamic float environment supporting ongoing valuation upside.
• Institutional ownership: Anchored by major players such as Vanguard and Japan Post Holdings, the shareholder base is stable and sophisticated—another mark of market endorsement.

This combination of active buybacks and ample trading volume sets the stage for a share price that remains responsive to fundamental improvement and future catalysts.

Catalysts and Positive Outlook

Looking forward, several tangible catalysts underline a constructive outlook for Aflac:

• Product innovation: Rollout of the new “Miraito” cancer insurance product in Japan is already delivering strong early sales, validating Aflac’s innovation strategy and creating meaningful earnings upside in its largest market.
• Demographic tailwinds: Aflac’s Japanese business is successfully reaching a younger customer base, diversifying beyond its established clientele and locking in future premium growth.
• U.S. group business momentum: Enhanced focus on life, disability, and network dental products positions the U.S. operation for continued expansion as employers seek comprehensive employee benefit solutions.
• Capital return commitment: The continued execution of share repurchases and significant year-on-year dividend growth affirm management’s focus on enhancing shareholder value.
• ESG and brand: The company’s longevity, commitment to ethical conduct, and iconic branding campaign reinforce both its long-term market share and customer loyalty.

These elements, coupled with possible macro relief from stabilization in investment markets and favorable regulation, provide multiple levers for top- and bottom-line improvement.

Investment Strategies

Astute investors will observe several timely entry scenarios:

• Short-term positioning: The present technical pullback—approaching solid support at $103.10—may offer an attractive entry for traders seeking to capitalize on a near-term rebound, especially with technical buy signals flickering.
• Medium-term: The clustering of moving averages, combined with a series of upward earnings catalysts (new products, potential improvement in investment performance, ongoing buybacks), positions the stock for possible outperformance against sector peers as the year progresses.
• Long-term holders: Aflac’s blend of robust dividend growth, moderate cyclical risk, and a strong global competitive moat builds a case for sustained accumulation, especially for portfolios seeking dependable income and capital appreciation.

Current conditions—subdued relative to 52-week highs, strong technical support, and confirmed capital return discipline—suggest an environment that supports measured, yet optimistic, portfolio allocation toward Aflac.

Is it the Right Time to Buy Aflac?

Summing up, Aflac displays a rare combination of sector leadership, compelling valuation, disciplined capital return, and identifiable near-term growth levers. The stock is trading at attractive multiples, has recently reset on a technical basis, and enjoys undiminished brand and operational dominance in both its core markets.

With its disciplined management, unmatched track record of returning capital to shareholders, innovative product portfolio, and resilient operating performance—even amid temporary investment-related headwinds—Aflac seems to represent an excellent opportunity for investors seeking stability, yield, and potential capital upside in 2025 and beyond. The company’s trajectory is well-supported by strong fundamentals, robust liquidity, and multiple organic growth levers, all enveloped in a defensive business model with low volatility.

In this context, Aflac’s current valuation and forward-looking strategy combine to justify renewed interest from investors of all profiles. As the macro landscape evolves and the company continues to build on its market strengths, the stock may be poised to enter a new bullish phase—one offering attractive total return potential, powered by both dividend yield and resilient earnings growth. For diligent, forward-thinking investors, Aflac stands out as a stock that merits serious consideration for fresh portfolio allocation.

How to buy Aflac stock in United States?

Buying Aflac (AFL) stock online is straightforward and secure when using a regulated US broker. Retail investors can choose between two primary methods: spot buying (purchasing shares outright) or trading via Contracts for Difference (CFDs), which enable leveraged speculation on price movements. Each method presents distinct features, risks, and fee structures. For guidance in selecting the option that best matches your investment profile, there is a detailed broker comparison further down the page.

Spot Buying

Spot (or cash) buying involves acquiring actual Aflac shares and becoming a shareholder, which entitles you to dividends, voting rights, and any potential price appreciation. Major US brokers generally offer low fees—typically a small fixed commission per trade, often between $0 to $5. For example, if Aflac shares trade at $103.52, investing $1,000 allows you to acquire approximately nine shares (since $1,000 ÷ $103.52 ≈ 9), accounting for a $5 brokerage fee.

Example gain scenario

If the stock price increases by 10%, your shares would be valued at about $1,100. This nets you a $100 gross gain, representing a +10% return on your original $1,000 investment.

Trading via CFD

CFDs (Contracts for Difference) are financial instruments that allow you to speculate on Aflac’s price movements without purchasing actual shares. Leverage can magnify both potential gains and losses, making CFDs riskier. The main costs are the spread (difference between buying and selling price) and daily overnight financing fees if you keep positions open for multiple days. For instance, a $1,000 stake with 5x leverage gives you exposure to $5,000 worth of Aflac stock.

Example gain scenario

If AFL shares rise by 8%, your leveraged position yields 8% × 5 = 40%. This equates to a $400 gross gain on your $1,000 margin outlay (excluding spreads and overnight charges).

Final Advice

Before investing, carefully compare the fees, platform features, and trading conditions offered by different brokers—some may prioritize low commissions, while others feature more advanced tools for CFD trading. Your choice between spot buying and CFD trading should be based on your goals, risk appetite, and investment timeline. To make an informed decision, don't forget to consult the comprehensive broker comparison further down this page.

Application

Rates & Fees

Learn More

#1

30+ million users

#1Recommended by Forbes

eToro

Rates & Fees

4.9

Discover

51% of CFD accounts lose money. You will never lose more than your investment.

#2

CFD and Indices Expert

#2

IG

Rates & Fees

4.9

Discover

74% of CFD accounts lose money. Your capital is at risk.

#3

CFD specialist

#3

Avatrade

Rates & Fees

4.8

On the broker's website

Our 7 tips for buying Aflac stock

The latest news about Aflac

Aflac reported a resilient performance in the U.S., with Q1 2025 sales growing by 3.5% year-over-year. This growth was primarily driven by the company's group insurance products, including group life, disability, and network dental offerings. The U.S. business remains a core contributor to results despite broader industry pressures, reflecting successful initiatives to grow distribution through agents and brokers. Continued focus on strengthening its domestic presence has fueled incremental sales momentum, demonstrating that Aflac's U.S. strategic priorities are gaining traction.

The Board approved a 16% increase in the quarterly dividend to $0.58 per share, payable in June 2025. This marks the 42nd consecutive year of dividend increases for Aflac, reinforcing the company’s commitment to shareholder return. With the next ex-dividend date set for May 21, 2025, the forward yield now stands at 2.24%. The enhanced dividend aligns with strong capital generation and solid free cash flow, making Aflac particularly attractive for U.S. investors seeking reliable and growing income streams from established financial institutions.

During Q1 2025, Aflac repurchased $900 million of its own stock, underscoring robust capital management. A total of 8.5 million shares were bought back, reducing share count and enhancing per-share metrics. The company maintains authorization to repurchase an additional 38.8 million shares, offering further flexibility to support the stock price. The buyback activity, alongside consistent dividend growth, sends a constructive signal about management confidence in Aflac’s underlying fundamentals and ongoing ability to return value to shareholders.

Technical analysis indicators signal a favorable risk/reward profile, with the stock recently rebounding off key support levels. Aflac’s RSI remains neutral at 53.77 and the MACD is signaling a buy, while the stock sits comfortably above its 20- and 200-day moving averages. After a short-term pullback coinciding with the Q1 earnings release, the share price found support near $103.10, suggesting underlying demand at these levels. Current technical positioning points to stabilization with potential upside, especially if fundamental momentum persists in the coming quarters.

Aflac’s U.S. operation continues to enjoy sector leadership, supported by strong brand presence and disciplined underwriting. As the nation’s top provider of supplemental health insurance, Aflac leverages its iconic marketing and trusted reputation to grow market share, even amidst competition and evolving regulatory frameworks. Improvements in agent productivity and ongoing expansion of group product offerings are positioning the company for continued medium-term growth. These competitive strengths, together with a solid balance sheet and prudent management, contribute to optimism for Aflac’s long-term prospects on the New York Stock Exchange.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.