AFLAC announces 5% dividend hike in 2022 | 40 consecutive years of DG
|Insurer Aflac has now raised the dividend forty consecutive years.|
On November 8, 2022, insurer AFLAC (trading symbol AFL) announced a 5% dividend increase to $0.42 quarterly per share. This marks the 40th consecutive year of increased dividends by the Dividend Aristocrat.
Aflac Incorporated announced that its Board of Directors has declared the first quarter dividend of $0.42 per share, payable on March 1, 2023, to shareholders of record at the close of business on February 15, 2023. This represents a 5.0% increase over the previously declared fourth quarter dividend. Last year Aflac announced a dividend hike of 21.2% (see table below) to $0.40 quarterly per share, marking 39 straight years of dividend growth.
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.
AFLAC ANNUAL DIVIDEND INCREASES
- 2022: +5.0% to $0.42 quarterly per share
- 2021: +21.2%
- 2020: +22.2%
- 2019: +3.8%
- 2018: +15.6%
- 2017: +4.7%
Commenting on the announcements, Aflac Incorporated Chairman and Chief Executive Officer Daniel P. Amos said: "I am pleased with the Board's action to increase the first quarter 2023 dividend. We treasure our record of 40 consecutive years of dividend increases, and our dividend track record is supported by the strength of our capital and cash flows. As an insurance company, our primary responsibility is to fulfill the promises we make to our policyholders. At the same time, we are listening to our shareholders and understand the importance of prudent liquidity and capital management. We remain committed to maintaining strong capital ratios on behalf of our policyholders and balance this financial strength with tactical capital deployment."
The new annual dividend rate of $1.68 per share for Aflac yields an estimated 2.35% at a stock price of $68. Aflac will pay an estimated annual dividend of $1.08 billion to shareholders now. Another Aristocrat just announcing a 5% dividend increase is biopharmaceutical company AbbVie.
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.