Aflac hikes dividend by 16% to $0.58 quarterly in 2024

Aflac Incorporated (Ticker: AFL), a leader in the health and life insurance sector, has announced a 16% increase in its dividend for 2024. This marks another milestone in the company’s impressive track record of 42 consecutive years of dividend increases, reflecting its strong commitment to rewarding shareholders.

For Aflac, one of the Dividend Heroes in 2024, this new dividend hike follows a 19% dividend increase in 2023. In the last 10 years Aflac hiked its dividend by a total of 197.4%. The current dividend yield is 2.2% based on a stock price of $106.76. The annual dividend payment for Aflac is estimated to be $1.3 billion. 

Aflac's latest dividend hike comes with several notable details. The new quarterly dividend per share has been set at $0.580, bringing the annual dividend per share to $2.32. Based on the current stock price of $106.76 as of December 3, 2024, this results in a dividend yield of 2.2%. Additionally, the ex-dividend date for this payout is scheduled for February 19, 2025.

Aflac Dividend Growth and Performance

Over the last five years, Aflac has demonstrated consistent dividend growth with a compound annual growth rate (CAGR) of 16.5%. The latest 16% hike for 2024 is well above the average, further solidifying the company's status as a reliable dividend payer. Aflac has been paying dividends since 1982, and its robust financial performance has enabled it to maintain its streak of increases for nearly four decades.

Aflac Stock Performance

As of December 3, 2024, Aflac's stock price stands at $106.76. The company has delivered a year-to-date total return of 33.1%, showcasing strong shareholder value creation not only through dividends but also via capital appreciation and stock buybacks. Aflac has repurchased more than 38% of its own shares in the past decade with annual buybacks of 4 to 6% of shares outstanding.

Aflac stock trades near its all time high

Aflac is also a Dividend Aristocrat with more than 25 consecutive years of dividend increases. Other Dividend Aristocrats announcing a dividend hike recently are Becton Dickinson and ADP.

Aflac Incorporated is a business holding company engaged in supplemental health and life insurance. Aflac is a provider of voluntary insurance at the worksite in the United States and medical and cancer insurance in Japan. The Company offers cancer plans, critical illness plans, and critical care and recovery plans. Aflac is a Dividend Aristocrat with more than 25 consecutive years of dividend growth.