AFL vs GPC: Dividend Comparison
Dividend data as of
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.
Verdict
Yield Analysis
GPC yields 0.68% more than AFL. In dollar terms, AFL pays $2.44/share vs GPC's $4.09/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%.
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: The payout ratio of 34% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.8x.
GPC: 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.
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in AFL vs GPC 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 $147.18 per share, $10,000 buys about 67.9 shares of Genuine Parts Co (GPC). Each share pays $4.09 per year in dividends, so the position starts out generating roughly $278 per year — about $23 a month.
GPC is the larger income stream from day one: $66 per year more on the same $10,000 invested.
What could $10,000 of AFL or GPC 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.
Genuine Parts Co (GPC) has raised its dividend about 6.0% a year over the past five years. If that pace held, the $279 per year that $10,000 generates today at the current 2.79% yield would reach $501 per year by 2036 — a 5.0% yield on the original cost.
On those trailing rates, AFL pays more in 2036: $864 versus $501 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 GPC's higher yield?
Aflac Inc (AFL) yields less today (2.11% vs 2.79%) but has grown its dividend faster — 15.1% vs 6.0% 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 GPC around 2030 (roughly 4 years from now), paying about $371 per year at the crossover. Before that point, GPC pays more each year; after it, the gap compounds in AFL's favor.
Can AFL and GPC 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).
Genuine Parts Co (GPC) earns $5.81 per share against $4.09 paid out in dividends — 1.4x coverage (a 70% 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 GPC if earnings weaken.
Which fits an early-retirement income portfolio better, AFL or GPC?
For income you need right now, Genuine Parts Co (GPC) leads: $100,000 invested today pays about $232 a month at the current 2.79% 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 6.0% 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; GPC has raised its dividend 39 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 $659/yr in GPC 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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