Dividend Aristocrat Overview: Aflac, Inc.

The Aflac duck has been the company's logo since 2000.
Photo: Flickr.com/BrownZelip

About Aflac

Aflac is the #1 provider of guaranteed renewable insurance in the U.S. and the #1 insurer in Japan, and started as the American Family Life Assurance Company of Columbus in 1955.  The company is well known for the “Aflac Duck”, which was introduced in 2000 and is a prominent part of the company’s branding strategy.  Aflac employs more than 4,500 people.  In addition, more than 74,000 independent sales agents represent Aflac.

The company’s business is focused in the United States and in Japan.  Aflac has been licensed to operate in Japan since 1974 and the company insures 1 in 4 households in Japan.  Aflac Japan is represented by over 120,000 licensed sales associates.

The company is a member of the S&P 500 index and trades under the ticker symbol AFL.  Aflac has been a Dividend Aristocrat since 2007.

Aflac’s Dividend and Stock Split History

Aflac has increased dividends annually since 1983.  Since 2010, the company has announced dividend increases in late October, with the stock going ex-dividend in November.

Aflac has compounded its payout at an average rate of 5.4% over the last 5 years and 8.1% over the last 10 years.

Aflac has paid out stock dividends many times since being listed on the NYSE in 1974.  The company paid a 25% stock dividend (that is, the company paid you 1 additional share for each 4 shares already owned) in October 1976, 10% stock dividends in March 1978 and September 1979, a 20% stock dividend in December 1983, another 10% stock dividend in December 1984, a 50% stock dividend in June 1985, a 33% stock dividend in March 1986, a 100% stock dividend in February 1987, a 25% stock dividend in 1993, and 50% stock dividend in March 1996, and, finally, 100% stock dividends in June 1998 and March 2001.

Direct Purchase and Dividend Reinvestment Plans

Aflac has both direct purchase and dividend reinvestment plans.  The terms and fees of Aflac’s plans are very friendly to investors, as the company pays all administration costs for the plans.  Aflac also pays the commissions when you buy shares of stock whether through dividend reinvestments or directly.  However, when you sell your stock through the plan, you will pay a sales commission.

Aflac administers the plan directly; additional information and the enrollment form is available on its website.

Helpful Links

Aflac’s Investor Relations Website

Current quote and financial summary for Aflac (finviz.com)

Information on the direct purchase and dividend reinvestment plans for Aflac

Want to find out about more great dividend growth stocks?

Check out the list of current S&P Dividend Aristocrats.

 

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