AFL vs DOV: Dividend Yield, Growth & Safety Comparison
Aflac Inc (AFL) from Financials and DOVER Corp (DOV) from Industrials offer different dividend profiles for income-focused portfolios. AFL offers a significantly higher 2.11% yield compared to DOV's 0.90%, a gap of 1.21%. For dividend growth, AFL leads with a 5-year CAGR of 15.1% versus DOV's 1.0%. Both stocks carry a "Safe" dividend safety rating. Both are classified as Dividend Aristocrats.
Key Metrics Comparison
| Metric | AFL | DOV |
|---|
| Dividend Yield | 2.11% | 0.90% |
| Annual Dividend | $2.44 | $2.08 |
| 5-Year CAGR | 15.1% | 1.0% |
| Payout Ratio | 34% | 26% |
| Consecutive Years | 41 | 41 |
| Price | $115.04 | $231.16 |
Yield Comparison
Aflac Inc (AFL) currently yields 2.11%, which is solid for the broader market. That's 1.21% more than DOVER Corp (DOV), which yields 0.90%. In dollar terms, AFL pays $2.44/share annually versus DOV's $2.08/share.
Dividend Growth
Over the past five years, AFL has grown its dividend at a 15.1% CAGR compared to DOV's 1.0%. 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%. DOV: Dividend growth has been steady, with a 3-year CAGR of 1.0% and a 5-year CAGR of 1.0% (10-year: 4.5%).
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. DOV's dividend safety is rated "Safe." The payout ratio of 26% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.8x. DOV's payout ratio of 26% is more conservative than AFL's 34%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in AFL generates approximately $211/year in dividend income, compared to $90/year from DOV — a difference of $121/year. At $100,000, that gap widens to $1210/year.
Verdict
- Best for income: AFL
- Best for growth: AFL
- Best for safety: DOV
Frequently Asked Questions
Which has a higher dividend yield, AFL or DOV?
Aflac Inc (AFL) has a higher dividend yield of 2.11% compared to DOVER Corp (DOV) at 0.90%.
Is AFL or DOV a better dividend growth stock?
Aflac Inc has the stronger dividend growth with a 5-year CAGR of 15.1%, compared to DOVER Corp's 1.0%.
Which is safer for dividend income, AFL or DOV?
Aflac Inc's dividend safety is rated "Safe" while DOVER Corp is rated "Safe." 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 26% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.8x.
How much income does $10,000 in AFL vs DOV generate?
A $10,000 investment in AFL generates approximately $211/year in dividends, while the same amount in DOV generates about $90/year.
Is AFL or DOV a Dividend Aristocrat?
Aflac Inc is a Dividend Aristocrat (41 years) and DOVER Corp is a Dividend Aristocrat (41 years).
Which has a lower payout ratio, AFL or DOV?
DOVER Corp has a lower payout ratio of 26% compared to Aflac Inc's 34%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
AFL vs DOV: which is better for retirement income?
It depends on your priorities. AFL for current income, AFL for dividend growth, DOV for safety. Many retirement investors hold both for diversification.
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