American Financial Group, Inc. (NYSE:

) announced today that its board of directors has approved an increase in the company's annual dividend from $0.55 to $0.65 per share of common stock. The increased dividend, when declared, will be paid on a quarterly basis of $0.1625 per share of common stock beginning in October 2010. The new dividend rate represents an 18% increase over the annual rate paid thus far in 2010. The company has increased its dividend in each of the last six years.