Analysis – AFLAC Inc. Increases Dividend by 5%

AFL

Aflac Incorporated announced a regular quarterly dividend of $0.41, a 5 percent increase from the prior rate of $0.39 per share. The dividend will be paid at the new higher rate on December 1, 2015, to shareholders of record at close of business on November 18, 2015.

Date Quarterly Dividend
11/18/2015 0.41
8/17/2015 0.39
5/18/2015 0.39
2/12/2015 0.39
11/17/2014 0.39
8/18/2014 0.37
5/19/2014 0.37
2/12/2014 0.37
11/18/2013 0.37
8/19/2013 0.35
5/20/2013 0.35
2/13/2013 0.35
11/9/2012 0.35
8/13/2012 0.33
5/14/2012 0.33
2/13/2012 0.33
11/14/2011 0.33
8/15/2011 0.3
5/16/2011 0.3
2/11/2011 0.3
11/15/2010 0.3
8/16/2010 0.28
5/17/2010 0.28
2/11/2010 0.28

Analysis of Valuation of Aflac (Symbol AFL).

Aflac is trading below the average of its price/book value (P/BV) range.  Aflac is trading below its average historical dividend yield. 

Price 10/28/15 % Yield 5 Year Div. Growth Rate BV    2015 P/BV Ratio 10 yr P/BV Low 10 yr P/BV  High 5 yr max Yield % 5 yr lowest Yield %
$64.42 2.47% 5% 45.90 1.33 0.60 4.83 3.54% 1.95%
Aflac Dividend Yield Chart (Click to enlarge)

AFL2

Explanation:  Dividend growth financial stocks may be valued upon historical relative price/book value and current yield analysis. Dividend financial stocks trading at a low historical price/book value (P/BV) ratio should be viewed more highly to investors due to their depressed valuation versus other higher P/BV ratio stocks.  Max P/BV price target is based upon company reaching its highest historical P/BV ratio.  Dividend stocks should also be viewed favorably when the current yield is above historical readings for the past 10 years.

Further information on evaluating dividend growth candidates can be found at http://seekingalpha.com/author/timothy-mcintosh/articles

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