About American Funds American Balanced Fund Class A (ABALX) — Dividend Analysis 2026
The investment seeks conservation of capital, current income and long-term growth of capital and income. The fund uses a balanced approach to invest in a broad range of securities, including common stocks and investment-grade bonds. It also invests in securities issued and guaranteed by the U.S. government and by federal agencies and instrumentalities. In addition, the fund may invest a portion of its assets in common stocks, most of which have a history of paying dividends, bonds and other securities of issuers domiciled outside the United States.
Is ABALX a good dividend investment in 2026?
ABALX offers a 1.45% forward yield with a 50% payout ratio. Strand Safety Score: 45/100 (Moderate Risk). The 5-year dividend CAGR of -50% is modest — investors should weigh current income against growth alternatives.
ABALX DRIP calculator — what's the difference?
With DRIP on a $10,000 investment over 10 years, your ABALX portfolio grows to $2.18M vs $2.16M without reinvestment. This is the compound interest effect in action.
ABALX dividend growth history & forecast
ABALX has grown its dividend by 0% over the last year and -50% annually over 5 years. At this pace, an investor who holds for 10+ years will see their yield on cost grow substantially above the current 1.45%.
FCF ($90M) is below dividends paid ($4.0B) — risk of cut (FCF: $90M · Dividends est.: $4.0B)
Debt Leverage0.0× Debt/EBITDA
30 / 30 pts
30/30
Debt/EBITDA 0.0× — low leverage, balance sheet is strong
Earnings Momentum+0.1B → +0.0B → +0.0B
15 / 30 pts
15/30
Net income grew in the latest year — positive but trend is unconfirmed
OVERALL ASSESSMENT
Dividend at moderate risk — monitor coverage and debt closely.
STRAND SCORE
45
/100
Strand Safety Score™ is proprietary to DividendFlow. Inputs: FCF, Debt/EBITDA, Net Income from SEC filings via FMP. Not financial advice. N/A for ETFs, pre-revenue companies, and tickers without income statements.
🌍 ABALX Yield by Country & Account Type
Real after-tax yield depends on where you live and how you hold ABALX.
Gross yield
1.45%
Tax rate
15.00%
After-tax yield
1.23%
Real yield (−CPI)
-1.57%
Account/Country
Tax Rate
After-tax Yield
Real Yield
$10K Annual Income
🇺🇸 Roth IRA / 401k
0%
1.45%
-1.35%
$145 / yr
🇺🇸 US Taxable (15%) ✓
15%
1.23%
-1.57%
$123 / yr
🇺🇸 US Taxable (20%)
20%
1.16%
-1.64%
$116 / yr
🇬🇧 UK ISA
0%
1.45%
-1.35%
$145 / yr
🇬🇧 UK Taxable
8.75%
1.32%
-1.48%
$132 / yr
🇨🇦 TFSA
0%
1.45%
-1.35%
$145 / yr
🇨🇦 CA Taxable
25%
1.09%
-1.71%
$109 / yr
🇦🇺 Super (pension)
15%
1.23%
-1.57%
$123 / yr
🇦🇺 AU Taxable
30%
1.01%
-1.78%
$102 / yr
🇩🇪 DE Taxable
26.375%
1.07%
-1.73%
$107 / yr
🇫🇷 FR Taxable
30%
1.01%
-1.78%
$102 / yr
Real yield = after-tax yield minus US CPI of 2.8%. 12-month CPI (US BLS via FMP economic-indicators). Click any row to select. US withholding tax (30%, reducible by treaty) applies to non-US residents holding US stocks in taxable accounts.
🎯 ABALX Income Goal & Break-Even
Dividend Break-Even
50yr+
Years for dividends to fully repay your ABALX investment of $36.31/share (🇺🇸 US Taxable (15%) · 15.00% tax)
$10K invested · 10 Years
Dividends earned (DRIP)
$123.04
Lost to inflation (2.8% CPI)
−$2.5K
Real purchasing power gain
$-2349.26
12-month CPI (US BLS via FMP economic-indicators).
How much do I need to invest in ABALX for:
Shares needed
53,782
Capital required
$1,952,824
Monthly income
$2,000
Based on current dividend of $0.53/share/yr · 🇺🇸 US Taxable (15%) · static projection (no growth assumed).
📅 ABALX Dividend Payment Schedule
ABALX pays quarterly — 4 times per year. Next ex-div: TBD.
Jan
Feb
Mar
💰
Apr
May
Jun
💰
Jul
Aug
Sep
💰
Oct
Nov
Dec
💰
10 shares
$1.12 / payment
$4.46 / year after tax
100 shares
$11.16 / payment
$44.63 / year after tax
1,000 shares
$111.56 / payment
$446.25 / year after tax
📊 ABALX vs Financial Services Benchmarks
How ABALX compares to typical Financial Services averages.
Benchmark: Financial Services
Dividend Yield▼-1.45% vs sectorBelow avg
ABALX
1.45%
avg
2.90%
5Y Dividend CAGR▼-57.10% vs sectorBelow avg
ABALX
-50.00%
avg
7.10%
Payout Ratio▼+12.00% vs sectorBelow avg
ABALX
50.00%
avg
38.00%
Benchmarks: S&P 500 sector averages (2024–2026). Sources: Morningstar, Bloomberg, NAREIT. 5Y CAGR for ABALX sourced from FMP /financial-growth endpoint — real data, not estimates.
🏛️ ABALX Insider Activity
No recent SEC filings reported in the last 90 days.
🔬
Financial Health Scores
Altman Z-Score
2168.70
✅ Safe Zone — low bankruptcy risk
Safe: >3.0 · Grey: 1.81–3.0 · Distress: <1.81
Piotroski F-Score
6/9
⚠️ Moderate fundamentals
Strong: 7–9 · Moderate: 4–6 · Weak: 0–3
Altman Z-Score predicts bankruptcy risk. Piotroski F-Score measures financial strength across 9 criteria. High scores → lower dividend cut risk. Data via FMP financial statements.
📊 About This Data
Dividend yields, payout ratios, and financial metrics are sourced from Financial Modeling Prep (FMP) and cross-referenced with SEC EDGAR filings. Data is cached and updated every 24 hours via our nightly refresh. DRIP projections are forward-looking estimates, not guarantees.
Educational purposes only. Not financial advice. DividendFlow is not a registered investment advisor. Projections generated by the ABALX dividend calculator are estimates based on historical data and user inputs. Actual future returns, stock prices, and dividend payments will vary. Dividends can be cut or suspended at any time. All investments carry risk, including the loss of principal. Please consult a qualified financial professional before making any investment decisions. Full disclaimer →