AFL vs BDX: Dividend Yield, Growth & Safety Comparison
Aflac Inc (AFL) from Financials and Becton Dickinson & Co (BDX) from Health Care offer different dividend profiles for income-focused portfolios. Both stocks offer similar yields — AFL at 2.11% and BDX at 2.36%. For dividend growth, AFL leads with a 5-year CAGR of 15.1% versus BDX's 6.2%. AFL holds the edge in dividend safety with a "Safe" rating. Both are classified as Dividend Aristocrats.
Key Metrics Comparison
| Metric | AFL | BDX |
|---|
| Dividend Yield | 2.11% | 2.36% |
| Annual Dividend | $2.44 | $4.20 |
| 5-Year CAGR | 15.1% | 6.2% |
| Payout Ratio | 34% | 68% |
| Consecutive Years | 41 | 43 |
| Price | $115.04 | $177.39 |
Yield Comparison
Becton Dickinson & Co (BDX) currently yields 2.36%, which is solid for the broader market. That's 0.25% more than Aflac Inc (AFL), which yields 2.11%. In dollar terms, BDX pays $4.20/share annually versus AFL's $2.44/share.
Dividend Growth
Over the past five years, AFL has grown its dividend at a 15.1% CAGR compared to BDX's 6.2%. AFL: Dividend growth is accelerating — the 3-year CAGR of 35.7% exceeds the 5-year rate of 15.1% and the 10-year rate of 15.7%. BDX: Dividend growth has been steady, with a 3-year CAGR of 6.5% and a 5-year CAGR of 6.2% (10-year: 5.2%).
Dividend Safety
AFL's dividend safety is rated "Safe." The payout ratio of 34% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.8x. BDX's dividend safety is rated "Moderate." The payout ratio of 68% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.5x. AFL's payout ratio of 34% is more conservative than BDX's 68%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in BDX generates approximately $236/year in dividend income, compared to $211/year from AFL — a difference of $25/year. At $100,000, that gap widens to $250/year.
Verdict
- Best for income: BDX
- Best for growth: AFL
- Best for safety: AFL
Frequently Asked Questions
Which has a higher dividend yield, AFL or BDX?
Becton Dickinson & Co (BDX) has a higher dividend yield of 2.36% compared to Aflac Inc (AFL) at 2.11%.
Is AFL or BDX a better dividend growth stock?
Aflac Inc has the stronger dividend growth with a 5-year CAGR of 15.1%, compared to Becton Dickinson & Co's 6.2%.
Which is safer for dividend income, AFL or BDX?
Aflac Inc's dividend safety is rated "Safe" while Becton Dickinson & Co is rated "Moderate." The payout ratio of 34% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.8x. The payout ratio of 68% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.5x.
How much income does $10,000 in AFL vs BDX generate?
A $10,000 investment in AFL generates approximately $211/year in dividends, while the same amount in BDX generates about $236/year.
Is AFL or BDX a Dividend Aristocrat?
Aflac Inc is a Dividend Aristocrat (41 years) and Becton Dickinson & Co is a Dividend Aristocrat (43 years).
Which has a lower payout ratio, AFL or BDX?
Aflac Inc has a lower payout ratio of 34% compared to Becton Dickinson & Co's 68%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
AFL vs BDX: which is better for retirement income?
It depends on your priorities. BDX for current income, AFL for dividend growth, AFL for safety. Many retirement investors hold both for diversification.
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