AFL vs SHW: Dividend Yield, Growth & Safety Comparison
Aflac Inc (AFL) from Financials and Sherwin Williams Co (SHW) from Materials offer different dividend profiles for income-focused portfolios. AFL offers a significantly higher 2.11% yield compared to SHW's 0.87%, a gap of 1.24%. For dividend growth, AFL leads with a 5-year CAGR of 15.1% versus SHW's 9.5%. Both stocks carry a "Safe" dividend safety rating. Both are classified as Dividend Aristocrats.
Key Metrics Comparison
| Metric | AFL | SHW |
|---|
| Dividend Yield | 2.11% | 0.87% |
| Annual Dividend | $2.44 | $3.16 |
| 5-Year CAGR | 15.1% | 9.5% |
| Payout Ratio | 34% | 31% |
| Consecutive Years | 41 | 40 |
| Price | $115.04 | $368.50 |
Yield Comparison
Aflac Inc (AFL) currently yields 2.11%, which is solid for the broader market. That's 1.24% more than Sherwin Williams Co (SHW), which yields 0.87%. In dollar terms, AFL pays $2.44/share annually versus SHW's $3.16/share.
Dividend Growth
Over the past five years, AFL has grown its dividend at a 15.1% CAGR compared to SHW's 9.5%. 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%. SHW: Dividend growth is accelerating — the 3-year CAGR of 14.3% exceeds the 5-year rate of 9.5% and the 10-year rate of 12.2%.
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. SHW's dividend safety is rated "Safe." The payout ratio of 31% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.3x. Both have similar payout ratios — AFL at 34% and SHW at 31%.
Income Comparison
A $10,000 investment in AFL generates approximately $211/year in dividend income, compared to $87/year from SHW — a difference of $124/year. At $100,000, that gap widens to $1240/year.
Verdict
- Best for income: AFL
- Best for growth: AFL
- Best for safety: SHW
Frequently Asked Questions
Which has a higher dividend yield, AFL or SHW?
Aflac Inc (AFL) has a higher dividend yield of 2.11% compared to Sherwin Williams Co (SHW) at 0.87%.
Is AFL or SHW a better dividend growth stock?
Aflac Inc has the stronger dividend growth with a 5-year CAGR of 15.1%, compared to Sherwin Williams Co's 9.5%.
Which is safer for dividend income, AFL or SHW?
Aflac Inc's dividend safety is rated "Safe" while Sherwin Williams Co 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 31% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.3x.
How much income does $10,000 in AFL vs SHW generate?
A $10,000 investment in AFL generates approximately $211/year in dividends, while the same amount in SHW generates about $87/year.
Is AFL or SHW a Dividend Aristocrat?
Aflac Inc is a Dividend Aristocrat (41 years) and Sherwin Williams Co is a Dividend Aristocrat (40 years).
Which has a lower payout ratio, AFL or SHW?
Sherwin Williams Co has a lower payout ratio of 31% compared to Aflac Inc's 34%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
AFL vs SHW: which is better for retirement income?
It depends on your priorities. AFL for current income, AFL for dividend growth, SHW for safety. Many retirement investors hold both for diversification.
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