Dividend Increase: AFL

ID-100130817-300x200 Dividend Increase: AFL

Aflac (AFL) just declared $0.52 quarterly dividend. This is an increase of 15.6% from $0.45.

I own 25 shares, so this will increase my annual dividend income by $7.00 to a total of $4,722.96

I updated both my Passive Income page as well as my Portfolio page to reflect the changes.

 

My Thoughts:

WOW, a 15.6% pay increase. I was not expecting that. Even thought AFL has had a low payout ratio for a long time, they have been averaging a 3-year dividend growth rate of 5.5% and a 5-year dividend growth rate of 5.4%. This 15.6% increase was a completely pleasant surprise.

I made a video on my YouTube Channel describing Aflac. I mentioned that I see them growing their dividend at the same rate as prior years, so this increase was unexpected.

Like I mentioned in the video, AFL is overvalued when comparing it to its normal PE. I would like to see the company with a PE of 10 or lower before considering buying.

With that said, I give Aflac a HOLD recommendation.

Screen-Shot-2018-02-06-at-7.42.56-PM Dividend Increase: AFL

Source: fastgraphs.com

 

Thanks for reading, and don’t forget to follow me for great investment ideas.

 

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