Aflac Incorporated

(New York Stock Exchange)
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Very Bullish +78

Josh Brown names top dividend stocks to own in 2026

AI-generated analysis

πŸ“ˆ Josh Brown recommends Travelers (TRV), Chubb (CB), and Aflac (AFL) as top dividend stocks for 2026 due to their defensive stability and reliable income generation.

πŸ’° Travelers reported core EPS of $10.04 in Q2, nearly double the consensus estimate of $5.39, driven by higher investment income and lower catastrophe losses.

πŸ€– Travelers expanded margins using its proprietary AI underwriting platform named 'Travis' to improve operational efficiency.

πŸ“‰ Travelers has retired over 70% of its outstanding shares since 2006, enhancing per-share value and attractiveness for long-term holders.

πŸš€ Chubb's Q1 operating earnings surged 85% year-over-year to $6.82 per share as the company leverages global scale across 54 countries.

πŸ’΅ Chubb's $173 billion investment portfolio is redeploying maturing fixed-income assets at higher interest rates, supporting earnings and dividend durability.

πŸ“ˆ Chubb has increased its dividend for 33 consecutive years with a current annual payout of $4.08 per share.

πŸ“Š Aflac reported Q1 sales growth of 25.5% alongside margin expansion to 35%, driven by its dominant supplemental health presence in the US and Japan.

πŸ’Έ Aflac generates up to $3 billion in annual free cash flow, which is consistently directed into share repurchases and cash payouts to shareholders.

πŸ“‰ AFL trades near an all-time high of $125 with a yield of nearly 2%, though Wall Street analysts currently rate the stock as 'Hold' with a mean target of roughly $116.

Bullish Signals
  • Travelers delivered a massive Q2 earnings beat with core EPS of $10.04, nearly double the consensus estimate of $5.39.
  • Travelers achieved a 46% increase in quarterly net income to US$2.2 billion due to higher investment income and reduced catastrophe losses.
  • Chubb's Q1 operating earnings soared 85% year-over-year to $6.82 per share, demonstrating strong operational momentum.
  • Chubb's investment portfolio of US$173 billion is generating accelerating returns as assets are redeployed at higher interest rates.
  • Aflac achieved a 25.5% increase in Q1 sales while expanding margins to 35%, indicating robust business performance.
  • All three recommended companies have long, consecutive histories of dividend increases: Travelers (22 years), Chubb (33 years), and Aflac (43 years).
  • Travelers has retired over 70% of its shares since 2006, creating a self-funding growth cycle that reduces dilution.
  • Aflac generates up to US$3 billion in annual free cash flow, providing ample capital for share buybacks and payouts.
Risk Factors
  • Travelers faces the risk that catastrophe losses could spike again, potentially wiping out underwriting gains and slowing dividend growth.
  • Chubb is exposed to risks from rising credit or investment losses, as well as a potential rapid fall in interest rates affecting its portfolio returns.
  • Aflac currently trades at a premium near an all-time high of $125, while Wall Street analysts maintain a 'Hold' rating with a mean price target of roughly $116, suggesting potential downside from current levels.
Full Analysis
Josh Brown, CEO of Ritholtz Wealth Management, has identified Travelers (TRV), Chubb (CB), and Aflac (AFL) as top dividend stocks for 2026. The article highlights these insurers for their disciplined underwriting, resilient balance sheets, and long histories of increasing payouts, positioning them as defensive growth opportunities in a volatile market. Travelers recently validated its bullish thesis with blockbuster Q2 earnings, reporting core EPS of $10.04 against a consensus of $5.39. This surge was driven by a 14% increase in investment income and reduced catastrophe losses, alongside efficiency gains from its AI underwriting platform, 'Travis.' The company has retired over 70% of its shares since 2006 and is approaching 'dividend aristocrat' status with 22 consecutive years of payout increases. Chubb demonstrated sharp growth in Q1 operating earnings, which soared 85% year-over-year to $6.82 per share. Its massive $173 billion investment portfolio is generating accelerating returns as fixed-income assets are redeployed at higher interest rates. The company boasts 33 consecutive years of dividend hikes and a $4.08 annual payout, with technical analysis suggesting potential for a breakout above the $320 support level. Aflac offers defensive cash flow through its dominant supplemental health presence in the US and Japan, with Q1 sales up 25.5% and margins expanding to 35%. The company generates approximately $3 billion in annual free cash flow, which it directs toward share repurchases and payouts. While AFL has raised dividends for 43 straight years and trades near an all-time high of $125, Wall Street currently rates the stock as a 'Hold' with a mean price target around $116.