8 Magnificent Dividend Growth Stocks to Buy Now

3. Aflac Incorporated (NYSE:AFL)

5-Year Average Annual Dividend Growth Rate: 12.4%

Aflac Incorporated (NYSE:AFL) is an American insurance company that is a major provider of supplemental insurance in the United States. Supplemental insurance provides financial protection for expenses not covered by a primary insurance plan. The company’s supplemental policies include coverage for accidents, healthcare, dental, disability, and other areas.

Regarding its Japan operations, Aflac Incorporated (NYSE:AFL) has maintained its emphasis on third-sector products while also reaching out to newer, younger customers. Although still in the early phases, management was encouraged by the initial launch of a new life insurance product, which includes options for asset building and nursing care. This contributed to a 12.3% rise in sales for the third quarter of 2024. This approach aligns with the company’s strategy to engage younger clients by offering comprehensive financial protection and services that support them across various stages of life. The company’s overall revenue for the quarter fell by over 40% on a YoY basis at $3 billion.

Aflac Incorporated (NYSE:AFL) is a dependable choice for dividend investors. The company’s strong cash position supports its steady dividend payouts. Its trailing twelve-month operating cash flow came in at over $2.9 billion and its levered free cash flow for the period amounted to $2.89 billion.

Aflac Incorporated (NYSE:AFL), one of the best dividend aristocrat stocks, currently offers a quarterly dividend of $0.50 per share. The company has raised its payouts for 42 years in a row and its 5-year average annual dividend growth rate comes in at 12.4%. As of November 14, the stock has a dividend yield of 1.82%.