Covered, steady insurer income. A 4.87% yield on a 56.1% reported payout is covered income: $1.40 a quarter, raised in February 2026 for the 18th consecutive year. The raise was 3.7%, from $1.35, and Q2 2026 after-tax adjusted operating income of $4.08 per share ran well ahead of the quarterly rate.
Key risk: Japan conduct risk — reports of a fraud probe at the Gibraltar Life unit in Japan put a key international business under regulatory scrutiny, and life-insurer earnings stay sensitive to credit markets and interest rates.
Changes if: Reported earnings fall enough to push the payout well past 56.1%, or adjusted operating income drops toward the quarterly rate. On FY2025 reported earnings the dividend is covered today.
- ✓Payout-coverage check: 56.1% on a reported basis — $5.60 indicated against $9.99 of FY2025 diluted EPS; Q2 2026 after-tax adjusted operating income was $4.08 per share against the $1.40 quarterly rate.
- ✓Yield check: 4.87% indicated — $1.40/qtr × 4 at the $114.99 close on Oct. 23, 2026. Real, earned yield for a single stock, not a special or a return of capital.
- ✓Dividend growth check: 18 consecutive years of increases; the latest raise, declared Feb. 3, 2026, lifted the quarterly dividend 3.7%, from $1.35 to $1.40.
What this grade doesn't say: It screens the dividend only — covered, real, compounding. It says nothing about valuation or price: a well-covered payer can still be overpriced, and its price can still fall.