How Safe Is Aflac's Dividend?
Most Americans know Aflac (NYSE: AFL) because of its duck-filled ads on television, with the specialty insurer offering a different type of insurance coverage from what most people get through their employer health plans. Aflac also has a huge business in Japan, where it actually gets more revenue than in the U.S. and offers a similar set of unique insurance products to millions of Japanese workers. Aflac is well-known as a strong dividend stock, with impressive yields and long-term growth in quarterly payouts that have added to the success of the investment over the long run.
With that in mind, we'll assess Aflac on a number of metrics to determine whether its dividend is safe.
Aflac currently has a dividend yield of 2.1%. That's relatively close to the overall average dividend yield among S&P 500 stocks, but it's toward the low end of where Aflac has generally seen itself. Over the past five years, Aflac's yield has fluctuated between 2% and 3%, but a recent drop has sent the yield to levels not seen since 2011. Most of the hit to Aflac's dividend yield has come as a result of a big boom in its stock price rather than because of any weakness in the company's quarterly payout.
Source: Fool.com
Aflac Inc. Stock
Currently there is a rather negative sentiment for Aflac Inc. with 3 Buy predictions and 5 Sell predictions..
With a target price of 95 € there is a slightly negative potential of -14.03% for Aflac Inc. compared to the current price of 110.5 €.
