AFL vs TGT: Dividend Comparison

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 $115.49 per share, $10,000 buys about 86.6 shares of Target Corp (TGT). Each share pays $4.50 per year in dividends, so the position starts out generating roughly $390 per year — about $32 a month.

TGT is the larger income stream from day one: $178 per year more on the same $10,000 invested.

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.

Target Corp (TGT) has raised its dividend about 9.4% a year over the past five years. If that pace held, the $401 per year that $10,000 generates today at the current 4.01% yield would reach $982 per year by 2036 — a 9.8% yield on the original cost.

On those trailing rates, TGT pays more in 2036: $982 versus $864 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.

Aflac Inc (AFL) yields less today (2.11% vs 4.01%) but has grown its dividend faster — 15.1% vs 9.4% 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 TGT around 2039 (roughly 13 years from now), paying about $1,319 per year at the crossover. Before that point, TGT pays more each year; after it, the gap compounds in AFL's favor.

Aflac Inc (AFL) earns $6.83 per share against $2.44 paid out in dividends — 2.8x coverage (a 34% payout ratio).

Target Corp (TGT) earns $8.25 per share against $4.50 paid out in dividends — 1.8x coverage (a 55% 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 TGT if earnings weaken.

For income you need right now, Target Corp (TGT) leads: $100,000 invested today pays about $335 a month at the current 4.01% 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 9.4% 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; TGT has raised its dividend 42 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.