AFL vs XOM: Dividend Yield, Growth & Safety Comparison
Aflac Inc (AFL) from Financials and Exxon Mobil Corp (XOM) from Energy offer different dividend profiles for income-focused portfolios. XOM edges ahead on yield at 2.64% versus AFL's 2.11%. For dividend growth, AFL leads with a 5-year CAGR of 15.1% versus XOM's 11.2%. Both stocks carry a "Safe" dividend safety rating. Both are classified as Dividend Aristocrats.
Key Metrics Comparison
| Metric | AFL | XOM |
|---|
| Dividend Yield | 2.11% | 2.64% |
| Annual Dividend | $2.44 | $4.00 |
| 5-Year CAGR | 15.1% | 11.2% |
| Payout Ratio | 34% | 60% |
| Consecutive Years | 41 | 42 |
| Price | $115.04 | $148.59 |
Yield Comparison
Exxon Mobil Corp (XOM) currently yields 2.64%, which is solid for the broader market. That's 0.53% more than Aflac Inc (AFL), which yields 2.11%. In dollar terms, XOM pays $4.00/share annually versus AFL's $2.44/share.
Dividend Growth
Over the past five years, AFL has grown its dividend at a 15.1% CAGR compared to XOM's 11.2%. 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%. XOM: Dividend growth is slowing — the 3-year CAGR of 4.3% trails the 5-year rate of 11.2% and the 10-year rate of 6.6%.
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. XOM's dividend safety is rated "Safe." The payout ratio of 60% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 1.7x. AFL's payout ratio of 34% is more conservative than XOM's 60%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in XOM generates approximately $264/year in dividend income, compared to $211/year from AFL — a difference of $53/year. At $100,000, that gap widens to $530/year.
Verdict
- Best for income: XOM
- Best for growth: AFL
- Best for safety: AFL
Frequently Asked Questions
Which has a higher dividend yield, AFL or XOM?
Exxon Mobil Corp (XOM) has a higher dividend yield of 2.64% compared to Aflac Inc (AFL) at 2.11%.
Is AFL or XOM a better dividend growth stock?
Aflac Inc has the stronger dividend growth with a 5-year CAGR of 15.1%, compared to Exxon Mobil Corp's 11.2%.
Which is safer for dividend income, AFL or XOM?
Aflac Inc's dividend safety is rated "Safe" while Exxon Mobil Corp 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 60% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 1.7x.
How much income does $10,000 in AFL vs XOM generate?
A $10,000 investment in AFL generates approximately $211/year in dividends, while the same amount in XOM generates about $264/year.
Is AFL or XOM a Dividend Aristocrat?
Aflac Inc is a Dividend Aristocrat (41 years) and Exxon Mobil Corp is a Dividend Aristocrat (42 years).
Which has a lower payout ratio, AFL or XOM?
Aflac Inc has a lower payout ratio of 34% compared to Exxon Mobil Corp's 60%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
AFL vs XOM: which is better for retirement income?
It depends on your priorities. XOM for current income, AFL for dividend growth, AFL for safety. Many retirement investors hold both for diversification.
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