Aflac's Dividend Record and Currency Exposure
Market figures in this article reflect the data snapshot available on August 13, 2026 and are not updated afterward.
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An Insurer Whose Dividend Leans on Japan
Aflac sells supplemental health and life insurance, and most of its profit comes not from the United States but from Japan, where it is one of the largest insurers of its kind. That geographic tilt is unusual for a US-listed Dividend Aristocrat, and it shapes the dividend in a specific way. The cash funding 42 years of raises is earned largely in yen and translated back into dollars, which adds a variable most dividend payers never deal with.
A Light Payout Keeps the Dividend Steady
Aflac pays out about 26% of earnings, well under the 43% median for Dividend Aristocrats. A payout that light — what the ratio does and does not settle is set out in The Payout Ratio — gives the dividend a wide margin, which matters for an insurer whose results move with claims, interest rates, and the yen-dollar exchange rate. Keeping nearly three-quarters of earnings back is how Aflac has protected its 42-year streak through all of those swings.
| Metric | Aflac (AFL) | Aristocrat median |
|---|---|---|
| Dividend yield | 1.97% | 2.28% |
| Payout ratio | 25.7% | 43.1% |
| Consecutive raise years | 42 | 32 |
The underlying demand helps as well. Supplemental health and life policies are relatively low-cost for policyholders and tend to stay in force for years, so premiums recur with little churn. That steadiness in the top line, across both the US and Japan, is the foundation the payout rests on, and it is why an insurer can commit to a 42-year raise streak in the first place.
A Yield Slightly Below Its Own Norm
At 1.97%, Aflac's yield sits 7% under its five-year average of 2.13%, and further below its 10-year average of 2.21%. A modestly below-average yield points to a price that has edged a little ahead of the dividend, though not by much, and our screen tags the stock Fair.
| Yield reference | Level | vs current |
|---|---|---|
| Current trailing yield | 1.97% | — |
| 5-year average | 2.13% | −7% |
| 10-year average | 2.21% | −11% |
The Currency Wrinkle Behind the Payout
The Japan exposure is worth understanding, because when the yen weakens against the dollar, Aflac's Japanese profits translate into fewer dollars, which can pressure reported earnings even when the underlying business is healthy. The light payout is the buffer against exactly that. By committing so little of earnings to the dividend, Aflac can absorb currency swings without threatening the streak, which is a large part of why the streak has held despite that added complexity.
The Read
So Aflac is a durable dividend with an unusual engine. The 42-year streak and 25.7% payout describe a well-protected dividend, and the yield sitting slightly below its norm means the stock is priced fairly to a touch rich. The distinctive risk is the yen, which can move reported earnings around, but the low payout is built to handle it. For an income investor comfortable with that currency wrinkle, Aflac offers a steady, well-covered dividend at an ordinary price. The screener shows how that payout and yield rank against the rest of the tier on any given day.
The dividend record and latest figures are in the company's filings on SEC EDGAR. For how we group stocks by history tier and assign a current dividend profile, see our methodology page.
Disclaimer: This is informational only and not financial advice. Figures reflect the site snapshot dated 2026-08-13 and move with the market. Investing carries risk of loss, including loss of principal.