AFL vs GPC: Dividend Yield, Growth & Safety Comparison
Aflac Inc (AFL) from Financials and Genuine Parts Co (GPC) from Consumer Discretionary offer different dividend profiles for income-focused portfolios. GPC edges ahead on yield at 2.79% versus AFL's 2.11%. For dividend growth, AFL leads with a 5-year CAGR of 15.1% versus GPC's 6.0%. AFL holds the edge in dividend safety with a "Safe" rating. Both are classified as Dividend Aristocrats.
Key Metrics Comparison
| Metric | AFL | GPC |
|---|
| Dividend Yield | 2.11% | 2.79% |
| Annual Dividend | $2.44 | $4.09 |
| 5-Year CAGR | 15.1% | 6.0% |
| Payout Ratio | 34% | 70% |
| Consecutive Years | 41 | 39 |
| Price | $115.04 | $147.18 |
Yield Comparison
Genuine Parts Co (GPC) currently yields 2.79%, which is solid for the broader market. That's 0.68% more than Aflac Inc (AFL), which yields 2.11%. In dollar terms, GPC pays $4.09/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 GPC's 6.0%. 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%. GPC: Dividend growth is slowing — the 3-year CAGR of 4.1% trails the 5-year rate of 6.0% and the 10-year rate of 5.1%.
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. GPC's dividend safety is rated "Moderate." The payout ratio of 70% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.4x. AFL's payout ratio of 34% is more conservative than GPC's 70%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in GPC generates approximately $279/year in dividend income, compared to $211/year from AFL — a difference of $68/year. At $100,000, that gap widens to $680/year.
Verdict
- Best for income: GPC
- Best for growth: AFL
- Best for safety: AFL
Frequently Asked Questions
Which has a higher dividend yield, AFL or GPC?
Genuine Parts Co (GPC) has a higher dividend yield of 2.79% compared to Aflac Inc (AFL) at 2.11%.
Is AFL or GPC a better dividend growth stock?
Aflac Inc has the stronger dividend growth with a 5-year CAGR of 15.1%, compared to Genuine Parts Co's 6.0%.
Which is safer for dividend income, AFL or GPC?
Aflac Inc's dividend safety is rated "Safe" while Genuine Parts 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 70% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.4x.
How much income does $10,000 in AFL vs GPC generate?
A $10,000 investment in AFL generates approximately $211/year in dividends, while the same amount in GPC generates about $279/year.
Is AFL or GPC a Dividend Aristocrat?
Aflac Inc is a Dividend Aristocrat (41 years) and Genuine Parts Co is a Dividend Aristocrat (39 years).
Which has a lower payout ratio, AFL or GPC?
Aflac Inc has a lower payout ratio of 34% compared to Genuine Parts Co's 70%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
AFL vs GPC: which is better for retirement income?
It depends on your priorities. GPC for current income, AFL for dividend growth, AFL for safety. Many retirement investors hold both for diversification.
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