The Board of Directors for American Financial Group (NYSE:AFG) has approved a 12.8% increase of its dividend payout, from $0.195 per share to $0.22 quarterly, which is a $0.10 increase in the annual payout, from $0.78 to $0.88.

This announcement marks an eighth consecutive year for American Financial Group's dividend increases. In a joint statement to the press, AFG co-CEOs Craig Lindner and Carl Lindner III stated they were "pleased to increase the annual dividend paid to our shareholders by 10 cents per share. This increase reflects our confidence in the Company's financial condition and liquidity, and its prospects for long-term growth."

As of the market's close on Aug. 21, American Financial Group's stock was trading at $51.60 per share, which means its $0.88 annual dividend currently yields 1.7%.