July 24, 2026 a 12:46 pm
AFL: Dividend Analysis - Aflac Incorporated
Aflac Incorporated, a leading player in the insurance sector, offers a reliable dividend yield of 2.03%. With a rich history of 43 consecutive years of dividend payments and no history of cuts or suspensions, its dividend profile exhibits resilience and growth. The current dividend per share is $2.26, reflecting the company's robust financial health and commitment to shareholder value.
📊 Overview
Aflac operates in the insurance sector, providing a consistent dividend yield and demonstrating financial reliability. Its dividend profile is strengthened further by its solid history of 43 years of dividends without a cut.
| Attribute | Value |
|---|---|
| Sector | Insurance |
| Dividend Yield | 2.03% |
| Current Dividend Per Share | $2.26 |
| Dividend History | 43 years |
| Last Cut or Suspension | None |
📈 Dividend History
The long-standing dividend history is a key indicator of Aflac's financial stability and commitment to rewarding its shareholders. The consistency in dividend distribution is an attractive aspect for investors looking for income stability.
| Year | Dividend Per Share (USD) |
|---|---|
| 2026 | 1.22 |
| 2025 | 2.32 |
| 2024 | 2.00 |
| 2023 | 1.68 |
| 2022 | 1.60 |
📈 Dividend Growth
Dividend growth is a critical metric for assessing the earnings potential and future reliability of dividends. Aflac's growth indicates its commitment to enhancing shareholder value over time.
| Time | Growth |
|---|---|
| 3 years | 13.19% |
| 5 years | 15.68% |
The average dividend growth is 15.68% over 5 years. This shows moderate but steady dividend growth, indicating a positive trend for future payouts.
📉 Payout Ratio
The payout ratio is a crucial metric for understanding how much profit is used to pay dividends. It helps gauge whether a company can sustain its dividend payouts.
| Key Figure | Ratio |
|---|---|
| EPS-based | 25.01% |
| Free Cash Flow-based | 39.21% |
Aflac's EPS payout ratio of 25.01% and a FCF payout ratio of 39.21% suggest a conservative approach, preserving significant earnings for reinvestment while ensuring reliable dividends.
Cashflow & Capital Efficiency
Assessing cash flow and capital efficiency is critical in understanding a company's ability to generate cash and manage financial resources effectively.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Free Cash Flow Yield | 4.37% | 4.69% | 6.49% |
| Earnings Yield | 6.24% | 9.43% | 9.47% |
| CAPEX to Operating Cash Flow | 0% | 0% | 0% |
| Stock-based Compensation to Revenue | 0% | 0% | 0% |
| Free Cash Flow / Operating Cash Flow Ratio | 100% | 100% | 100% |
The effective cash flow management, as reflected by stable free cash flow yields and a high free cash flow operating ratio, exhibits Aflac's operational efficiency and strong cash management.
Balance Sheet & Leverage Analysis
Balance sheet analysis provides insights into financial health, debt management, and overall leverage, affecting liquidity and financial stability.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Debt-to-Equity | 0.29 | 0.29 | 0.33 |
| Debt-to-Assets | 0.0722 | 0.0638 | 0.0581 |
| Debt-to-Capital | 0.222 | 0.223 | 0.251 |
| Net Debt to EBITDA | 0.39 | 0.20 | 0.58 |
| Current Ratio | 12.39 | 0 | 0 |
| Quick Ratio | 12.39 | 0 | 0 |
| Financial Leverage | 3.95 | 4.50 | 5.76 |
The analyses indicate robust financial stability with adequate leverage. Aflac is equipped to handle obligations, offering a stable base for future growth.
Fundamental Strength & Profitability
Profitability metrics showcase a company's ability to generate profit and enhance shareholder value.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Return on Equity | 12.36% | 20.86% | 21.19% |
| Return on Assets | 3.13% | 4.63% | 3.68% |
| Net Profit Margin | 20.91% | 28.46% | 24.73% |
| EBIT Margin | 26.67% | 33.55% | 27.93% |
| EBITDA Margin | 31.68% | 33.55% | 27.93% |
| Gross Margin | 38.93% | 35.63% | 100.00% |
| Research & Development to Revenue | 0% | 0% | 0% |
Aflac demonstrates strong profitability metrics, particularly in return on equity and margins, reinforcing its efficient operations and robust financials.
Price Development
Dividend Scoring System
Evaluating the dividend profile involves aggregating various financial measures to score the company comprehensively.
| Category | Score | Score Bar |
|---|---|---|
| Dividend Yield | 4 | |
| Dividend Stability | 5 | |
| Dividend Growth | 4 | |
| Payout Ratio | 5 | |
| Financial Stability | 5 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 5 | |
| Balance Sheet Quality | 4 |
Total Score: 37/40
✅ Rating
Aflac Incorporated stands out as a financially sound company with strong dividend attributes. Its commitment to consistent and growing payouts coupled with robust financial health makes it a compelling choice for income-driven investors seeking stability and moderate growth potential.
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