Aflac(US:AFL) ZACKS·2024-12-03 18:15Core Viewpoint - Aflac Incorporated has announced a 16% increase in its first-quarter 2025 dividend, reflecting a strong commitment to enhancing shareholder value [1][2]. Dividend Growth - This marks the 42nd consecutive year of dividend increases for Aflac, with the new dividend set at 58 cents per share, up from 50 cents in the previous quarter [2]. - The increased dividend will be paid on March 3, 2025, to shareholders of record as of February 19, 2025 [2]. Financial Performance - Aflac has consistently paid dividends, demonstrating reliability as a dividend-paying company, with a dividend yield of 1.8% based on the stock's closing price of $111.40 on December 2, 2024 [3]. - The company distributed $820 million in dividends during the first nine months of 2024 [3]. Share Buybacks - Aflac actively engages in share buybacks, repurchasing 23.4 million shares worth $2.1 billion in the first nine months of 2024, with 54.3 million shares remaining for repurchase as of September 30, 2024 [4]. Liquidity and Cash Position - Aflac's strong liquidity is highlighted by a cash and cash equivalents balance of $5.6 billion as of September 30, 2024, a 30.3% increase from the end of 2023 [5]. - The company generated net cash from operations of $2.4 billion in the first nine months of 2024 [5]. Growth Initiatives - Aflac's robust cash position allows for investment in growth initiatives, supporting long-term expansion plans and reducing balance sheet risks [6]. Profitability Metrics - Aflac's return on equity stands at 16.4% as of September 30, 2024, which is higher than the industry average of 16.2% [7]. Stock Performance - Aflac's shares have gained 34.6% over the past year, compared to the industry's growth of 43.3% [8].