AFL vs BDX: Dividend Comparison
Dividend data as of
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.
Verdict
Yield Analysis
BDX yields 0.25% more than AFL. In dollar terms, AFL pays $2.44/share vs BDX's $4.20/share annually.
Dividend Growth
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: The payout ratio of 34% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.8x.
BDX: 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.
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in AFL vs BDX today?
At $115.04 per share, $10,000 buys about 86.9 shares of Aflac Inc (AFL). Each share pays $2.44 per year in dividends, so the position starts out generating roughly $212 per year — about $18 a month.
At $177.39 per share, $10,000 buys about 56.4 shares of Becton Dickinson & Co (BDX). Each share pays $4.20 per year in dividends, so the position starts out generating roughly $237 per year — about $20 a month.
BDX is the larger income stream from day one: $25 per year more on the same $10,000 invested.
What could $10,000 of AFL or BDX income look like in 10 years?
Aflac Inc (AFL) has raised its dividend about 15.1% a year over the past five years. If that pace held, the $211 per year that $10,000 generates today at the current 2.11% yield would reach $864 per year by 2036 — a 8.6% yield on the original cost.
Becton Dickinson & Co (BDX) has raised its dividend about 6.2% a year over the past five years. If that pace held, the $236 per year that $10,000 generates today at the current 2.36% yield would reach $431 per year by 2036 — a 4.3% yield on the original cost.
On those trailing rates, AFL pays more in 2036: $864 versus $431 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.
When would AFL's dividend growth overtake BDX's higher yield?
Aflac Inc (AFL) yields less today (2.11% vs 2.36%) but has grown its dividend faster — 15.1% vs 6.2% a year over the past five years. If both trends continued, a $10,000 position in AFL would start out-earning the same position in BDX around 2028 (roughly 2 years from now), paying about $280 per year at the crossover. Before that point, BDX pays more each year; after it, the gap compounds in AFL's favor.
Can AFL and BDX afford their dividends?
Aflac Inc (AFL) earns $6.83 per share against $2.44 paid out in dividends — 2.8x coverage (a 34% payout ratio).
Becton Dickinson & Co (BDX) earns $6.12 per share against $4.20 paid out in dividends — 1.5x coverage (a 68% payout ratio).
AFL's wider coverage leaves more cushion if earnings dip. As a rule of thumb, coverage below about 1.5x (a payout ratio above ~65%) is where a dividend starts to look stretched — worth watching for BDX if earnings weaken.
Which fits an early-retirement income portfolio better, AFL or BDX?
For income you need right now, Becton Dickinson & Co (BDX) leads: $100,000 invested today pays about $197 a month at the current 2.36% yield, versus $176 a month from Aflac Inc (AFL) at 2.11%.
With a decade or more before the income is needed, AFL's faster dividend growth (15.1% vs 6.2% a year) matters more than the starting yield — raises compound into the larger paycheck over time.
On consistency: AFL has raised its dividend 41 consecutive years; BDX has raised its dividend 43 consecutive years.
Many income investors simply hold both — the mix pairs current yield with growth and spreads single-name risk. Whichever way you lean, dividends are never guaranteed; recheck the payout each quarter rather than setting and forgetting.
$10,000 with DRIP: projected annual income
If each holding keeps raising its dividend at its real 5-year rate and every payment is reinvested, a $10,000 position pays $1,065/yr in AFL vs $544/yr in BDX by year 10.
Assumes dividends are reinvested at the current yield and grow at each holding's trailing 5-year dividend CAGR. A projection, not a prediction — no price appreciation modeled.
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