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.
Source: fastgraphs.com
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FV –
Def. LOVED the surprise increase from AFL. I hope more companies deliver, as I’ve seen a few already, including V.
-Lanny
Ooh yes! It was a great surprise. I’m happy about V increases too. I have a post coming out about that soon. Thanks for stopping by Lanny.