Wednesday, November 16, 2022

Dividend Increase - Aflac Incorporated (AFL)



Tuesday, November 8th the Board of Directors of Aflac Incorporated (AFL) announced a quarterly dividend increase of from $ 0.40 to $ 0.42 per share that’s payable March 1, 2023 to holders of record February 15, 2023. This represents a 5.0% increase over the last quarterly dividend.


Additionally, its Board of Directors authorized the purchase of up to 100 million shares of its common stock. This authorization is in addition to the 25.6 million shares as of September 30, 2022, that remained under the August 11, 2020 authorization, bringing the total number of shares available for purchase to approximately 125.6 million. The company anticipates that the repurchase of shares will be conducted from time to time in open market or negotiated transactions, depending on market conditions.


With current price $ 70.23 (yesterday's close), this raise brings their dividend yield to 2.39%.


Aflac is a Dividend Champions with a 41 year streak of dividend increases. Dividend growth rates for 1, 3, 5 and 10 years are 17.9, 8.3, 9.7 and 7.9 (Dividend Champions.xls)



Since I own 75 shares of AFL, this will increase my portfolio's projected annual net dividend income by $4.47.


Compared to some of the previous increases, this one seems rather small, but I am happy to accept it, an increase is always an increase.


This is the third dividend increase I received from Aflac since initiating a position August 2020. (More here) During this period, the quarterly dividend has risen by a respectable 50% from $0.28 to $0.42.


This increase raises my YOC to 4.44%.



Summary of 2022 Dividend Increases / Cuts



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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