AFL vs SHW: Dividend Comparison
Dividend data as of
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.
Verdict
Yield Analysis
AFL yields 1.24% more than SHW. In dollar terms, AFL pays $2.44/share vs SHW's $3.16/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%.
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: The payout ratio of 34% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.8x.
SHW: The payout ratio of 31% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.3x.
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in AFL vs SHW 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 $368.50 per share, $10,000 buys about 27.1 shares of Sherwin Williams Co (SHW). Each share pays $3.16 per year in dividends, so the position starts out generating roughly $86 per year — about $7 a month.
AFL is the larger income stream from day one: $126 per year more on the same $10,000 invested.
What could $10,000 of AFL or SHW 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.
Sherwin Williams Co (SHW) has raised its dividend about 9.5% a year over the past five years. If that pace held, the $87 per year that $10,000 generates today at the current 0.87% yield would reach $214 per year by 2036 — a 2.1% yield on the original cost.
On those trailing rates, AFL pays more in 2036: $864 versus $214 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.
When would SHW's dividend growth overtake AFL's higher yield?
It doesn't, on the trailing numbers. Aflac Inc (AFL) yields more today (2.11% vs 0.87%) and has also grown its dividend at least as fast (15.1% vs 9.5% a year over five years). Unless SHW accelerates its raises or AFL stumbles, SHW never closes the income gap — AFL wins on both current income and growth.
Can AFL and SHW 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).
Sherwin Williams Co (SHW) earns $10.28 per share against $3.16 paid out in dividends — 3.3x coverage (a 31% payout ratio).
SHW'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 AFL if earnings weaken.
Which fits an early-retirement income portfolio better, AFL or SHW?
For income you need right now, Aflac Inc (AFL) leads: $100,000 invested today pays about $176 a month at the current 2.11% yield, versus $72 a month from Sherwin Williams Co (SHW) at 0.87%.
AFL also leads on dividend growth (15.1% vs 9.5% a year over five years), so the trailing numbers favor it on both fronts.
On consistency: AFL has raised its dividend 41 consecutive years; SHW has raised its dividend 40 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 $234/yr in SHW 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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