AFL vs WMT: Dividend Yield, Growth & Safety Comparison
Aflac Inc (AFL) from Financials and Walmart Inc. (WMT) from Consumer Staples offer different dividend profiles for income-focused portfolios. AFL offers a significantly higher 2.11% yield compared to WMT's 0.72%, a gap of 1.39%. For dividend growth, AFL leads with a 5-year CAGR of 15.1% versus WMT's 6.4%. Both stocks carry a "Safe" dividend safety rating. Both are classified as Dividend Aristocrats.
Key Metrics Comparison
| Metric | AFL | WMT |
|---|
| Dividend Yield | 2.11% | 0.72% |
| Annual Dividend | $2.44 | $0.91 |
| 5-Year CAGR | 15.1% | 6.4% |
| Payout Ratio | 34% | 32% |
| Consecutive Years | 41 | 43 |
| Price | $115.04 | $133.79 |
Yield Comparison
Aflac Inc (AFL) currently yields 2.11%, which is solid for the broader market. That's 1.39% more than Walmart Inc. (WMT), which yields 0.72%. In dollar terms, AFL pays $2.44/share annually versus WMT's $0.91/share.
Dividend Growth
Over the past five years, AFL has grown its dividend at a 15.1% CAGR compared to WMT's 6.4%. 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%. WMT: Dividend growth is accelerating — the 3-year CAGR of 11.2% exceeds the 5-year rate of 6.4% and the 10-year rate of 3.9%.
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. WMT's dividend safety is rated "Safe." The payout ratio of 32% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.1x. Both have similar payout ratios — AFL at 34% and WMT at 32%.
Income Comparison
A $10,000 investment in AFL generates approximately $211/year in dividend income, compared to $72/year from WMT — a difference of $139/year. At $100,000, that gap widens to $1390/year.
Verdict
- Best for income: AFL
- Best for growth: AFL
Frequently Asked Questions
Which has a higher dividend yield, AFL or WMT?
Aflac Inc (AFL) has a higher dividend yield of 2.11% compared to Walmart Inc. (WMT) at 0.72%.
Is AFL or WMT a better dividend growth stock?
Aflac Inc has the stronger dividend growth with a 5-year CAGR of 15.1%, compared to Walmart Inc.'s 6.4%.
Which is safer for dividend income, AFL or WMT?
Aflac Inc's dividend safety is rated "Safe" while Walmart Inc. 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 32% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.1x.
How much income does $10,000 in AFL vs WMT generate?
A $10,000 investment in AFL generates approximately $211/year in dividends, while the same amount in WMT generates about $72/year.
Is AFL or WMT a Dividend Aristocrat?
Aflac Inc is a Dividend Aristocrat (41 years) and Walmart Inc. is a Dividend Aristocrat (43 years).
Which has a lower payout ratio, AFL or WMT?
Walmart Inc. has a lower payout ratio of 32% compared to Aflac Inc's 34%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
AFL vs WMT: which is better for retirement income?
It depends on your priorities. AFL for current income, AFL for dividend growth. Many retirement investors hold both for diversification.
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