Insurer Aflac Inc. (AFL) will raise its quarterly dividend by 17.9 percent in 2021. This is the second dividend hike announced in 2020 by the Dividend Aristocrat.

This february the dividend was raised by 3.7 percent to $0.28 per share in the first quarter of 2020. This follows a 3.8 percent dividend hike by the Dividend Aristocrat announced in 2019.

The increased dividend is payable on March 1, 2019 to shareholders of record at the close of business on February 17, 2021. The new annualized dividend rate of $1.32 per share yields 3.0% at a stock price of $43.72.

Commenting on the announcement in a press release dated November 18, 2020, Aflac Incorporated Chairman and Chief Executive Officer Daniel P. Amos said: "I am pleased with the Board's action to increase the first quarter 2021 dividend. We treasure our record of 38 consecutive years of dividend increases, and we are looking to reward our shareholders by extending that track record in 2021. We remain committed to maintaining strong capital ratios on behalf of our policyholders and balance this financial strength with a focus on increasing the dividend, repurchasing shares and reinvesting in our business. Our dividend track record is supported by the strength of our capital and cash flows." 

Aflac will now pay an estimated $941 million in dividends to shareholders annually. If we add this new dividend hike to the dividend increase announced earlier in 2020 the total dividend growth announced YTD is 22.2 percent.

Aflac Incorporated is engaged in supplemental health and life insurance. The company is a provider of voluntary insurance at the worksite in the United States and medical and cancer insurance in Japan. The Company offers cancer plans, critical illness plans, and critical care and recovery plans. When a policyholder gets sick or hurt, Aflac pays cash benefits fast, giving policyholders the opportunity to direct cash where it’s needed most when a specific health event or life situation causes financial challenges. This is often due to income loss from missed work as well as asset loss from many medical and non-medical out-of-pocket expenses that often arise. Aflac was founded in 1955 and has increased its dividend every year since 1982.