American Financial Group Lifted Its Dividend 10.2% and Kept Buying Back Stock
American Financial Group had a good second quarter, rewarding investors while also preparing for a tougher market.
American Financial Group (AFG), a $11 billion market cap property and casualty insurer, has announced a significant 10.2% increase in its dividend, maintaining its impressive streak of annual dividend hikes. The last dividend raise, disclosed in August 2026, came with an above-market yield of nearly 2.5%, making it an attractive option for investors focused on dividend growth.
However, the story does not end there. AFG's stock buyback program also plays a crucial role in its financial strategy. The company's combined ratio, a key metric for property and casualty insurers, provides insight into its financial health. This ratio compares the company's expenses and claims to the premiums it earns, with a figure below 100% indicating a profitable operation.
In the second quarter of 2026, AFG's combined ratio stood at 91.6%, a marked improvement from 93.1% in the same quarter of 2025. This improvement in the combined ratio, coupled with the substantial dividend increase, suggests that AFG is on a positive trajectory, making it an appealing prospect for investors.
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