Summary
Aflac Incorporated (AFL) announced on August 10, 2010, through an 8-K filing, that its Board of Directors has approved a 7.1% increase in its quarterly cash dividend, bringing it to $0.30 per share, payable in the fourth quarter of 2010. This dividend increase signals confidence from management in the company's financial stability and future earnings prospects following the 2008 financial crisis. Furthermore, Aflac intends to resume its share repurchase program, which had been suspended in late 2008. This move indicates a commitment to returning capital to shareholders and reflects a belief that the company's stock may be undervalued. With 32.4 million shares available for repurchase as of June 2010, this resumption is a positive development for investors seeking both income and potential capital appreciation.
Key Highlights
- 1Aflac's Board of Directors approved a 7.1% increase in the quarterly cash dividend, effective for the fourth quarter of 2010.
- 2The new quarterly dividend will be $0.30 per share, payable on December 1, 2010, to shareholders of record on November 17, 2010.
- 3Aflac announced its intention to resume share repurchase activities.
- 4The company had suspended its share repurchase program in the fourth quarter of 2008 due to the financial crisis.
- 5As of the end of June 2010, Aflac had 32.4 million shares available for repurchase under existing authorizations.
- 6The filing includes a press release dated August 10, 2010, as Exhibit 99.1.