American Financial Group Raises Dividend 10.2%, Extends Increase Streak to 21 Years

Dividend Increase and Yield

American Financial Group, Inc. (AFG) has announced a 10.2% increase in its annual common stock dividend, raising it to $3.88 per share from $3.52. The new dividend will be paid quarterly at $0.97 per share starting in October 2026. This marks the 21st consecutive year of dividend increases for the company.

Based on the closing price of $143.65 on August 20, 2026, the dividend yield stands at 2.4%, significantly higher than the industry average of 0.2%. The company's 10-year compound annual growth rate for regular annual dividends is 12.1%.

Financial Performance and Capital Management

In the second quarter of 2026, American Financial returned nearly $100 million to shareholders, including $26 million in share repurchases and an $0.88 per share regular quarterly dividend. As of June 30, 2026, the company held approximately $406 million in cash and investments.

The company's strong underwriting margins, healthy premium growth, and higher property and casualty net investment income contributed to a record second-quarter pretax P&C operating income. This performance resulted in an annualized core operating return on equity of 19%. Over the trailing 12 months, return on equity was 20.3%, compared favorably with the industry average of 7.4%.

American Financial expects its operations to continue generating significant excess capital throughout 2026, providing opportunities for acquisitions, special dividends, or share repurchases. The company's capital management strategy includes returning capital to shareholders through regular and special dividends and opportunistic share repurchases, while also deploying capital into core businesses for organic growth and acquisitions that meet target return thresholds.

What it means for income investors

American Financial's latest dividend increase extends a long track record of annual hikes, supported by strong financial performance and a commitment to returning capital to shareholders. With a yield well above the industry average, the company continues to be a notable income generator in the specialty insurance sector.

Reporting based on: Yahoo Finance. Figures verified against market data where available.