Dividend Increases: From Over 10% Yields to Over 10% Dividend Growth

Key Points

• A mortgage REIT with a yield already well above 10% just issued a solid boost to its quarterly payment.
• A consumer staples stock putting up large returns just lifted its dividend by 14%, staying with its multi-year trend of large increases.
• After appointing a new CEO, this large retailer is seeing a resurgence in its shares while also providing a strong dividend yield.

Several stocks spanning the gamut of high dividend yields to high dividend growth just added more juice to their payments. These stocks hold yields that stretch above 13% at the high end, while also seeing recent dividend increases of up to 14%. This leaves investors with multiple options for how to play the yield versus growth spectrum.

Annaly: High-Yield Mortgage REIT With Notable Risks

Annaly Capital Management NYSE: NLY is a real estate investment trust (REIT) with a very high dividend yield. The company is specifically involved in managing mortgage-backed securities (MBS) and other types of debt.

As a mortgage REIT, the company’s value proposition is its ability to identify and generate returns on MBSs, which then flow to its bottom line. After the company’s latest dividend increase of 7%, Annaly now holds an indicated dividend yield near 13.5%. The company’s next dividend is payable on July 31 to shareholders of record as of June 30.

However, one important risk to understand is Annaly’s use of leverage to generate returns, which increases both upside and downside volatility. Still, Annaly argues that it uses leverage more effectively than others in its industry.

Specifically, the firm notes that its economic return per unit of leverage is 2%, or 30% higher than that of the average mortgage REIT.

In other words, to generate the same gain on its underlying investments, the company has used less leverage than its competitors. Annaly has executed its strategy well, delivering a total return of over 40% since the start of 2025. Approximately half of that return has come through dividends. Overall, Annaly’s large dividend yield is appealing, but leverage risk is something that investors must take into account.

Casey’s: Expanding Dividend Rapidly, Rising Shares Weigh on Yield

Casey’s General Stores NASDAQ: CASY may not be in tech or artificial intelligence, but this consumer staples stock has been putting up big returns nonetheless. After rising 40% in 2025, Casey’s has returned approximately 50% in 2026. The convenience store and gas station has made a name for itself due to its in-house food, best known for its pizza.

The company has consistently outperformed analyst expectations, with its latest earnings report serving as another reminder of this. Sales grew by 14.5% year over year (YOY) to $4.57 billion, solidly beating estimates, while earnings per share (EPS) soared by 66% to $4.37. This allowed Casey’s to crush expectations of $3.31 by more than $1, leading shares to pop 20% afterward.

Casey’s also announced a substantial dividend increase of 14%. As Casey’s share price has performed well, large dividend increases have also become common, with this marking the fourth year in a row that Casey’s has boosted its dividend by 13% or more.

However, while Casey’s dividend has grown at a fast pace, its share price has grown faster, leaving the stock with a low indicated dividend yield near 0.3%. The company’s next dividend is payable on Aug. 14 to shareholders of record as of the Aug. 1 close. Overall, dividend income is down on the list of reasons to own Casey’s. However, the company’s willingness to strongly increase its capital returns is a nice cherry on top of its impressive underlying performance.

Target: Rebounding Retailer With an Over 3% Yield

Another impressive story in the consumer staples sector is Target NYSE: TGT. After delivering a return of -25% in 2025, Target appointed a new CEO near the beginning of 2026. So far, the move appears to be playing out well. After posting five quarters in a row of negative sales growth, Target grew revenue by 6.7% YOY in its latest quarter. Not only did the figure return to the green, but it was also Target’s highest sales growth rate in approximately four years.

Target also saw a strong improvement in its EPS, which rose by 31% YOY to $1.71, handily beating estimates of $1.47.

The company now expects to grow sales near 4% during the full year, which would be its best annual growth rate since 2022. As Target works to turn around its business, shares have delivered a return of more than 30% in 2026.

Notably, Target has also announced a small dividend increase of just under 2%, moving its quarterly payout to $1.16. The company’s next dividend is payable on Sept. 1 to shareholders of record as of the Aug. 12 close.

Despite Target’s latest increase being low, the stock’s dividend yield remains relatively high, near 3.5%.

Target also has a very long track record of dividend increases, having raised its payment for 54 years in a row. With this, Target provides investors with a solid dividend yield while also offering upside potential should the recovery in its financial performance continue.

Annaly, Casey's, and Target: Different Flavors of Dividends and Growth

While Annaly, Casey's, and Target offer very different dividend profiles, all are showing a strong desire to return increasing amounts of capital to shareholders. When it comes to Annaly, investors should also know the company can significantly drop its dividend at times. This happened in 2023, when the firm reduced its dividend by approximately 26%.