How does AFL's earnings volatility affect long-term holders?

**Aflac Incorporated's (AFL) earnings volatility does not significantly affect long-term holders** due to several factors that mitigate the impact of short-term fluctuations on investors with a stable investment horizon: 1. **Strong Financial Health**: AFLac's robust financials, as indicated by its high Return on Equity (ROE) of 15%, conservative cost structure, and significant shareholder returns through buybacks and dividends, provide a stable foundation for long-term investment. 2. **Resilience Amid Market Volatility**: The company's ability to outperform during market pullbacks, coupled with a strong market position and consistent revenue growth, suggests that AFLac can weather economic storms, minimizing the impact of earnings volatility on long-term holders. 3. **Dividend Stability**: AFLac's history of steady dividend payments, which currently yield around 2%, provides an additional layer of income stability for long-term investors, helping to offset potential dips in stock price. 4. **Historical Performance**: AFLac's track record of generating substantial free cash flow and its efficient capital structure enable it to return value to shareholders sustainably over time, even in the face of earnings volatility. 5. **Insider Confidence**: The company's management has shown confidence in its long-term strategy, as evidenced by consistent share buybacks despite currency fluctuations. This commitment to returning value to shareholders can bolster investor confidence, especially in the face of short-term volatility. In conclusion, while AFLac's earnings volatility may cause short-term price fluctuations, the company's strong financials, resilient market position, and commitment to shareholder returns make it a suitable investment for long-term holders who are less affected by short-term earnings volatility.