AFL vs ULTY: Dividend Comparison
Dividend data as of
Aflac Inc (AFL) from Financials and YieldMax Ultra Option Income Strategy ETF (ULTY) from N/A offer different dividend profiles for income-focused portfolios. ULTY offers a significantly higher 137.83% yield compared to AFL's 2.11%, a gap of 135.72%. For dividend growth, AFL leads with a 5-year CAGR of 15.1% versus ULTY's -88.4%. AFL is a Dividend Aristocrat with 41 years of consecutive increases.
Verdict
Yield Analysis
ULTY yields 135.72% more than AFL. In dollar terms, AFL pays $2.44/share vs ULTY's $45.23/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%.
ULTY: Dividend growth has been steady, with a 3-year CAGR of -88.4% and a 5-year CAGR of -88.4% (10-year: -88.4%).
Dividend Safety
AFL: The payout ratio of 34% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.8x.
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in AFL vs ULTY 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 $34.47 per share, $10,000 buys about 290.1 shares of YieldMax Ultra Option Income Strategy ETF (ULTY). Each share pays $45.23 per year in dividends, so the position starts out generating roughly $13,120 per year — about $1,093 a month.
ULTY is the larger income stream from day one: $12,908 per year more on the same $10,000 invested.
What could $10,000 of AFL or ULTY 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.
YieldMax Ultra Option Income Strategy ETF (ULTY)'s dividend has shrunk about 88.4% a year over the past five years. If that trend continued, today's $13,783 per year on $10,000 (at the current 137.83% yield) would fall to $0 per year by 2036.
On those trailing rates, AFL pays more in 2036: $864 versus $0 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 ULTY's higher yield?
Aflac Inc (AFL) yields less today (2.11% vs 137.83%) but has grown its dividend faster — 15.1% vs -88.4% 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 ULTY around 2028 (roughly 2 years from now), paying about $280 per year at the crossover. Before that point, ULTY pays more each year; after it, the gap compounds in AFL's favor.
Why is there no payout ratio for ULTY?
REWD has neither an earnings-per-share figure nor a payout ratio for YieldMax Ultra Option Income Strategy ETF (ULTY) — typical for ETFs and covered-call funds, whose distributions are funded by the underlying portfolio (stock dividends, option premium, or return of capital) rather than a single company's earnings. For a fund, judge sustainability by the distribution history and the strategy behind it, not a payout ratio.
Aflac Inc (AFL) earns $6.83 per share against $2.44 paid out in dividends — 2.8x coverage (a 34% payout ratio). That's the usual corporate affordability test — it just doesn't translate to the fund side of this comparison.
Which fits an early-retirement income portfolio better, AFL or ULTY?
For income you need right now, YieldMax Ultra Option Income Strategy ETF (ULTY) leads: $100,000 invested today pays about $11,486 a month at the current 137.83% 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 -88.4% 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.
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 $0/yr in ULTY 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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