Thursday, November 19, 2020

Dividend Increase – Aflac Incorporated (AFL)


On Wednesday, November 18 the Board of Directors of Aflac Incorporated announced a quarterly dividend increase of from $ 0.28 to $ 0.33 per share that’s payable March 1, 2020 to holders of record February 17, 2020. This represents a 17.9% increase over last quarterly dividend.


Commenting on the announcement, Aflac Incorporated Chairman and Chief Executive Officer Daniel P. Amos said: "I am pleased with the Board's action to increase the first quarter 2021 dividend. We treasure our record of 38 consecutive years of dividend increases, and we are looking to reward our shareholders by extending that track record in 2021. We remain committed to maintaining strong capital ratios on behalf of our policyholders and balance this financial strength with a focus on increasing the dividend, repurchasing shares and reinvesting in our business. Our dividend track record is supported by the strength of our capital and cash flows."


With current price $ 42.63 (today's open), this raise brings their dividend yield to 3.10%.


AFL is a Dividend Champions with a 38 year streak of dividend increases. Dividend growth rates for 1, 3, 5 and 10 years are 3.8, 9.2, 7.9 and 6.8 (Dividend Champions.xls)



Since I own 75 shares of AFL, this will increase my portfolio's projected annual net dividend income by $ 11.18.


This increase raises my YOC to 3.49%.



Summary of 2020 Dividend Increases / Cuts



As you can see, some large dividend cuts will have the effect that full-year growth will be negative. I also believe that there will come more cuts during this year.


Click here to see my portfolio holdings.


You can follow the development of my dividends here.


Full Disclosure: Long AFL


Thanks for stopping by!



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