Saturday, October 25, 2008

Aflac Announces 16% Increase In Dividend

Earlier this week Aflac (AFL) announced a 16.67% increase in the company's first quarter 2009 dividend. The new quarterly dividend will equal 28 cents per share versus 24 cents per share in the first quarter 2008. The estimated payout ratio on the new dividend is approximately 25%. This compares to the five year average payout ratio of 19%. The company carries a S&P Earnings and Dividend Quality Ranking of A.

The company's third quarter earnings indicated net income fell to $100 million, or 21 cents a share, from $420 million, or 85 cents a share, in the third quarter of 2007. About $198 million of the after-tax investment losses in the quarter partly stems from the company's decision to sell its holdings in Lehman Brothers and Washington Mutual and impair its investment in Ford Motor. Operating earnings, which exclude net realized investment gains and losses, were $493 million, or $1.02 a share.

(click table/chart for larger image)

Aflac dividend analysis table October 25, 2008
Aflac stock chart October 24, 2008

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