S&P 500   3,788.66 (+0.14%)
DOW   30,270.33 (-0.01%)
QQQ   282.26 (+0.10%)
AAPL   146.96 (+0.38%)
MSFT   250.12 (+0.37%)
META   139.07 (+0.06%)
GOOGL   102.58 (+1.13%)
AMZN   121.21 (+0.21%)
TSLA   242.41 (+0.66%)
NVDA   135.43 (+2.53%)
NIO   16.01 (-0.19%)
BABA   84.92 (+0.63%)
AMD   69.83 (+2.78%)
T   15.77 (-1.00%)
MU   55.05 (+0.58%)
CGC   3.13 (+1.95%)
F   12.50 (-0.08%)
GE   67.27 (-0.25%)
DIS   100.96 (+0.16%)
AMC   7.49 (+2.18%)
PYPL   94.55 (+0.77%)
PFE   43.67 (-1.02%)
NFLX   238.67 (+0.82%)
S&P 500   3,788.66 (+0.14%)
DOW   30,270.33 (-0.01%)
QQQ   282.26 (+0.10%)
AAPL   146.96 (+0.38%)
MSFT   250.12 (+0.37%)
META   139.07 (+0.06%)
GOOGL   102.58 (+1.13%)
AMZN   121.21 (+0.21%)
TSLA   242.41 (+0.66%)
NVDA   135.43 (+2.53%)
NIO   16.01 (-0.19%)
BABA   84.92 (+0.63%)
AMD   69.83 (+2.78%)
T   15.77 (-1.00%)
MU   55.05 (+0.58%)
CGC   3.13 (+1.95%)
F   12.50 (-0.08%)
GE   67.27 (-0.25%)
DIS   100.96 (+0.16%)
AMC   7.49 (+2.18%)
PYPL   94.55 (+0.77%)
PFE   43.67 (-1.02%)
NFLX   238.67 (+0.82%)
S&P 500   3,788.66 (+0.14%)
DOW   30,270.33 (-0.01%)
QQQ   282.26 (+0.10%)
AAPL   146.96 (+0.38%)
MSFT   250.12 (+0.37%)
META   139.07 (+0.06%)
GOOGL   102.58 (+1.13%)
AMZN   121.21 (+0.21%)
TSLA   242.41 (+0.66%)
NVDA   135.43 (+2.53%)
NIO   16.01 (-0.19%)
BABA   84.92 (+0.63%)
AMD   69.83 (+2.78%)
T   15.77 (-1.00%)
MU   55.05 (+0.58%)
CGC   3.13 (+1.95%)
F   12.50 (-0.08%)
GE   67.27 (-0.25%)
DIS   100.96 (+0.16%)
AMC   7.49 (+2.18%)
PYPL   94.55 (+0.77%)
PFE   43.67 (-1.02%)
NFLX   238.67 (+0.82%)
S&P 500   3,788.66 (+0.14%)
DOW   30,270.33 (-0.01%)
QQQ   282.26 (+0.10%)
AAPL   146.96 (+0.38%)
MSFT   250.12 (+0.37%)
META   139.07 (+0.06%)
GOOGL   102.58 (+1.13%)
AMZN   121.21 (+0.21%)
TSLA   242.41 (+0.66%)
NVDA   135.43 (+2.53%)
NIO   16.01 (-0.19%)
BABA   84.92 (+0.63%)
AMD   69.83 (+2.78%)
T   15.77 (-1.00%)
MU   55.05 (+0.58%)
CGC   3.13 (+1.95%)
F   12.50 (-0.08%)
GE   67.27 (-0.25%)
DIS   100.96 (+0.16%)
AMC   7.49 (+2.18%)
PYPL   94.55 (+0.77%)
PFE   43.67 (-1.02%)
NFLX   238.67 (+0.82%)

Recent Dividend Increases

Below you will find a list of public companies, exchange traded funds (ETFs), and real-estate investment trusts (REITs) that have recently increased the amount of their dividend payments. Learn how to invest in stocks with increasing dividends.

MarketRank evaluates a company based on community opinion, dividend strength, institutional and insider ownership, earnings and valuation, and analysts forecasts.
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Media sentiment refers to the percentage of positive news stories versus negative news stories a company has received in the past week.
Available with a MarketBeat All Access Subscription
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Analyst consensus is the average investment recommendation among Wall Street research analysts.
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Analyst ConsensusUpgrade to All Access to use the All Ratings Filter
CompanyAnnouncement DateAmountPrevious AmountIncrease AmountYieldEx-DatePayable DateIndicator(s)
Nuveen California Select Tax-Free Income Portfolio stock logo
NXC
Nuveen California Select Tax-Free Income Portfolio
10/5/2022$0.0420$0.045.00%3.8%10/13/202211/1/2022Positive News
Luxfer Holdings PLC stock logo
LXFR
Luxfer
10/4/2022$0.13$0.12504.00%3.4%10/13/202211/2/2022News Coverage
Bank OZK stock logo
OZK
Bank OZK
10/3/2022$0.33$0.323.13%3.09%10/13/202210/21/2022News Coverage
BlackRock Capital Allocation Trust stock logo
BCAT
BlackRock Capital Allocation Trust
10/3/2022$0.1041$0.10400.10%8.96%10/13/202210/31/2022News Coverage
Positive News
Global Net Lease, Inc. stock logo
GNL
Global Net Lease
10/3/2022$0.40$0.0592576.05%14.71%10/12/202210/17/2022Short Interest ↑
Positive News
BGRN
iShares USD Green Bond ETF
9/30/2022$0.1170$0.105011.43%3.06%10/3/202210/7/2022Ex-Dividend
Positive News
iShares Broad USD Investment Grade Corporate Bond ETF stock logo
USIG
iShares Broad USD Investment Grade Corporate Bond ETF
9/30/2022$0.1420$0.13405.97%3.51%10/3/202210/7/2022Ex-Dividend
Positive News
iShares 5-10 Year Investment Grade Corporate Bond ETF stock logo
IGIB
iShares 5-10 Year Investment Grade Corporate Bond ETF
9/30/2022$0.1320$0.12902.33%3.25%10/3/202210/7/2022Ex-Dividend
Positive News
iShares 1-5 Year Investment Grade Corporate Bond ETF stock logo
IGSB
iShares 1-5 Year Investment Grade Corporate Bond ETF
9/30/2022$0.0940$0.08905.62%2.28%10/3/202210/7/2022Ex-Dividend
Positive News
iShares J.P. Morgan USD Emerging Markets Bond ETF stock logo
EMB
iShares J.P. Morgan USD Emerging Markets Bond ETF
9/30/2022$0.3710$0.312018.91%5.55%10/3/202210/7/2022Ex-Dividend
Positive News
iShares GNMA Bond ETF stock logo
GNMA
iShares GNMA Bond ETF
9/30/2022$0.0840$0.08202.44%2.33%10/3/202210/7/2022Ex-Dividend
Positive News
iShares ESG Advanced High Yield Corporate Bond ETF stock logo
HYXF
iShares ESG Advanced High Yield Corporate Bond ETF
9/30/2022$0.2020$0.19304.66%5.71%10/3/202210/7/2022Ex-Dividend
Positive News
iShares 7-10 Year Treasury Bond ETF stock logo
IEF
iShares 7-10 Year Treasury Bond ETF
9/30/2022$0.1870$0.17904.47%2.31%10/3/202210/7/2022Ex-Dividend
Positive News
iShares 3-7 Year Treasury Bond ETF stock logo
IEI
iShares 3-7 Year Treasury Bond ETF
9/30/2022$0.1620$0.15206.58%1.69%10/3/202210/7/2022Ex-Dividend
Positive News
iShares Core 1-5 Year USD Bond ETF stock logo
ISTB
iShares Core 1-5 Year USD Bond ETF
9/30/2022$0.0870$0.088.75%2.26%10/3/202210/7/2022Ex-Dividend
Positive News
iShares Core Total USD Bond Market ETF stock logo
IUSB
iShares Core Total USD Bond Market ETF
9/30/2022$0.1020$0.09903.03%2.74%10/3/202210/7/2022Ex-Dividend
Positive News
iShares MBS ETF stock logo
MBB
iShares MBS ETF
9/30/2022$0.1980$0.19700.51%2.58%10/3/202210/7/2022Ex-Dividend
Options Volume
News Coverage
Positive News
iShares Preferred and Income Securities ETF stock logo
PFF
iShares Preferred and Income Securities ETF
9/30/2022$0.1690$0.151011.92%6.36%10/3/202210/7/2022Ex-Dividend
News Coverage
Positive News
VanEck Pharmaceutical ETF stock logo
PPH
VanEck Pharmaceutical ETF
9/30/2022$0.27$0.258.00%1.59%10/3/202210/7/2022Ex-Dividend
Positive News
High Trading Volume
Principal U.S. Small-Cap Multi-Factor ETF stock logo
PSC
Principal U.S. Small-Cap Multi-Factor ETF
9/30/2022$0.3570$0.1730106.36%3.81%10/3/202210/6/2022Ex-Dividend
News Coverage
Positive News
iShares Short Treasury Bond ETF stock logo
SHV
iShares Short Treasury Bond ETF
9/30/2022$0.2010$0.161024.84%2.2%10/3/202210/7/2022Ex-Dividend
Positive News
iShares 1-3 Year Treasury Bond ETF stock logo
SHY
iShares 1-3 Year Treasury Bond ETF
9/30/2022$0.1080$0.108.00%1.59%10/3/202210/7/2022Ex-Dividend
Positive News
SKOR
FlexShares Credit-Scored US Corporate Bond Index Fund
9/30/2022$0.1030$0.10101.98%2.69%10/3/202210/7/2022Ex-Dividend
Positive News
iShares 0-5 Year Investment Grade Corporate Bond ETF stock logo
SLQD
iShares 0-5 Year Investment Grade Corporate Bond ETF
9/30/2022$0.0990$0.09603.13%2.5%10/3/202210/7/2022Ex-Dividend
Positive News
iShares ESG 1-5 Year USD Corporate Bond ETF stock logo
SUSB
iShares ESG 1-5 Year USD Corporate Bond ETF
9/30/2022$0.0390$0.03608.33%1.99%10/3/202210/7/2022Ex-Dividend
Positive News
iShares ESG USD Corporate Bond ETF stock logo
SUSC
iShares ESG USD Corporate Bond ETF
9/30/2022$0.0620$0.05806.90%3.38%10/3/202210/7/2022Ex-Dividend
Positive News
iShares 20+ Year Treasury Bond ETF stock logo
TLT
iShares 20+ Year Treasury Bond ETF
9/30/2022$0.2440$0.23603.39%2.82%10/3/202210/7/2022Ex-Dividend
Positive News
Western Asset Total Return ETF stock logo
WBND
Western Asset Total Return ETF
9/30/2022$0.0840$0.067025.37%5.14%10/3/202210/6/2022Ex-Dividend
Positive News
Western Asset Short Duration Income ETF stock logo
WINC
Western Asset Short Duration Income ETF
9/30/2022$0.0550$0.05205.77%2.86%10/3/202210/6/2022Ex-Dividend
Positive News
The First of Long Island Co. stock logo
FLIC
First of Long Island
9/30/2022$0.21$0.205.00%4.72%10/11/202210/21/2022News Coverage
Lockheed Martin Co. stock logo
LMT
Lockheed Martin
9/30/2022$3.00$2.807.14%3.11%11/30/202212/30/2022Analyst Report
Honeywell International Inc. stock logo
HON
Honeywell International
9/30/2022$4.12$0.98320.41%9.73%11/9/202212/2/2022Analyst Report
Glacier Bancorp, Inc. stock logo
GBCI
Glacier Bancorp
9/30/2022$0.33$0.10230.00%2.67%10/7/202210/20/2022News Coverage
Howmet Aerospace Inc. stock logo
HWM
Howmet Aerospace
9/29/2022$0.04$0.02100.00%0.52%11/3/202211/25/2022Positive News
First Trust Enhanced Short Maturity ETF stock logo
FTSM
First Trust Enhanced Short Maturity ETF
9/29/2022$0.11$0.099011.11%2.23%9/30/202210/5/2022Positive News
JSMD
Janus Henderson Small/Mid Cap Growth Alpha ETF
9/29/2022$0.0530$0.045017.78%0.43%9/30/202210/6/2022Positive News
Vanguard Short-Term Inflation-Protected Securities Index Fund stock logo
VTIP
Vanguard Short-Term Inflation-Protected Securities Index Fund
9/29/2022$0.9040$0.685031.97%7.52%10/3/202210/6/2022Ex-Dividend
Positive News
Johnson Outdoors Inc. stock logo
JOUT
Johnson Outdoors
9/29/2022$0.31$0.303.33%2.39%10/12/202210/27/2022
Vanguard Total World Bond ETF stock logo
BNDW
Vanguard Total World Bond ETF
9/29/2022$0.1070$0.107.00%10/3/202210/6/2022Ex-Dividend
Positive News
Vanguard Total International Bond Index Fund stock logo
BNDX
Vanguard Total International Bond Index Fund
9/29/2022$0.0490$0.042016.67%10/3/202210/6/2022Ex-Dividend
Positive News
Vanguard Total Corporate Bond ETF stock logo
VTC
Vanguard Total Corporate Bond ETF
9/29/2022$0.1940$0.19201.04%10/3/202210/6/2022Ex-Dividend
Positive News
Vanguard Total Bond Market Index Fund stock logo
BND
Vanguard Total Bond Market Index Fund
9/29/2022$0.1530$0.14803.38%10/3/202210/6/2022Ex-Dividend
Positive News
Vanguard Short-Term Treasury Index Fund stock logo
VGSH
Vanguard Short-Term Treasury Index Fund
9/29/2022$0.0560$0.0440.00%10/3/202210/6/2022Ex-Dividend
Vanguard Short-Term Corporate Bond Index Fund stock logo
VCSH
Vanguard Short-Term Corporate Bond Index Fund
9/29/2022$0.1270$0.11609.48%10/3/202210/6/2022Ex-Dividend
Positive News
Vanguard Mortgage-Backed Securities Index Fund stock logo
VMBS
Vanguard Mortgage-Backed Securities Index Fund
9/29/2022$0.0960$0.0820.00%10/3/202210/6/2022Ex-Dividend
Positive News
Vanguard Intermediate-Term Treasury Index Fund stock logo
VGIT
Vanguard Intermediate-Term Treasury Index Fund
9/29/2022$0.0880$0.073020.55%10/3/202210/6/2022Ex-Dividend
News Coverage
Positive News
Vanguard Intermediate-Term Corporate Bond Index Fund stock logo
VCIT
Vanguard Intermediate-Term Corporate Bond Index Fund
9/29/2022$0.1970$0.19202.60%10/3/202210/6/2022Ex-Dividend
Positive News
Vanguard Emerging Markets Government Bond Index Fund stock logo
VWOB
Vanguard Emerging Markets Government Bond Index Fund
9/29/2022$0.27$0.25705.06%10/3/202210/6/2022Ex-Dividend
Positive News
City Holding stock logo
CHCO
City
9/28/2022$0.65$0.608.33%2.93%10/13/202210/31/2022
Concentrix Co. stock logo
CNXC
Concentrix
9/28/2022$0.2750$0.2510.00%1.0%10/27/202211/8/2022Earnings Report
Insider Selling
Starbucks Co. stock logo
SBUX
Starbucks
9/28/2022$0.53$0.498.16%2.43%11/9/202211/25/2022
Ferguson plc stock logo
FERG
Ferguson
9/28/2022$1.91$0.84127.38%2.6%10/27/202212/8/2022Analyst Revision
Cal-Maine Foods, Inc. stock logo
CALM
Cal-Maine Foods
9/27/2022$0.85$0.7513.33%5.64%10/25/202211/10/2022
OGE Energy Corp. stock logo
OGE
OGE Energy
9/27/2022$0.4140$0.410.98%4.26%10/7/202210/28/2022Positive News
Mid-America Apartment Communities, Inc. stock logo
MAA
Mid-America Apartment Communities
9/27/2022$1.25$1.062517.65%3.3%10/13/202210/31/2022Short Interest ↑
Analyst Revision
News Coverage
Ingredion Incorporated stock logo
INGR
Ingredion
9/26/2022$0.71$0.659.23%3.43%10/5/202210/25/2022
QQD
Simplify Growth Equity PLUS Downside Convexity ETF
9/26/2022$0.0310$0.026019.23%0.53%9/27/20229/30/2022Positive News
TTEC Holdings, Inc. stock logo
TTEC
TTEC
9/26/2022$0.52$0.504.00%2.2%10/7/202210/26/2022
Vanguard Russell 1000 Index Fund stock logo
VONE
Vanguard Russell 1000 Index Fund
9/26/2022$0.7570$0.679011.49%1.82%9/28/202210/3/2022Positive News
Vanguard Russell 1000 Growth Index Fund stock logo
VONG
Vanguard Russell 1000 Growth Index Fund
9/26/2022$0.1510$0.128017.97%1.09%9/28/202210/3/2022Positive News
Vanguard Russell 1000 Value Index Fund stock logo
VONV
Vanguard Russell 1000 Value Index Fund
9/26/2022$0.3830$0.37302.68%2.54%9/28/202210/3/2022Positive News
Vanguard Russell 3000 Index Fund stock logo
VTHR
Vanguard Russell 3000 Index Fund
9/26/2022$0.6450$0.62303.53%1.58%9/28/202210/3/2022Positive News
Vanguard Russell 2000 Growth Index Fund stock logo
VTWG
Vanguard Russell 2000 Growth Index Fund
9/26/2022$0.3930$0.1390182.73%1.05%9/28/202210/3/2022Positive News
Vanguard Russell 2000 Index Fund stock logo
VTWO
Vanguard Russell 2000 Index Fund
9/26/2022$0.2850$0.218030.73%1.71%9/28/202210/3/2022Positive News
Vanguard Russell 2000 Value Index Fund stock logo
VTWV
Vanguard Russell 2000 Value Index Fund
9/26/2022$0.70$0.467049.89%2.44%9/28/202210/3/2022Positive News
WisdomTree Interest Rate Hedged U.S. Aggregate Bond Fund stock logo
AGZD
WisdomTree Interest Rate Hedged U.S. Aggregate Bond Fund
9/23/2022$0.11$0.095015.79%2.89%9/26/20229/29/2022
DGRS
WisdomTree U.S. SmallCap Quality Dividend Growth Fund
9/23/2022$0.15$0.1050.00%4.89%9/26/20229/29/2022Positive News
High Trading Volume
WisdomTree U.S. Quality Dividend Growth Fund stock logo
DGRW
WisdomTree U.S. Quality Dividend Growth Fund
9/23/2022$0.1850$0.1085.00%4.03%9/26/20229/29/2022Positive News
iShares Select Dividend ETF stock logo
DVY
iShares Select Dividend ETF
9/23/2022$1.3460$0.867055.25%4.9%9/26/20229/30/2022
iShares ESG Aware MSCI USA ETF stock logo
ESGU
iShares ESG Aware MSCI USA ETF
9/23/2022$0.3950$0.276043.12%1.95%9/26/20229/30/2022Positive News
WisdomTree Interest Rate Hedged High Yield Bond Fund stock logo
HYZD
WisdomTree Interest Rate Hedged High Yield Bond Fund
9/23/2022$0.10$0.09505.26%5.95%9/26/20229/29/2022
iShares Semiconductor ETF stock logo
SOXX
iShares Semiconductor ETF
9/23/2022$1.8020$0.6280186.94%2.2%9/26/20229/30/2022
iShares S&P Small-Cap 600 Growth ETF stock logo
IJT
iShares S&P Small-Cap 600 Growth ETF
9/23/2022$0.3630$0.215068.84%1.44%9/26/20229/30/2022Positive News
iShares Core S&P U.S. Value ETF stock logo
IUSV
iShares Core S&P U.S. Value ETF
9/23/2022$0.4620$0.305051.48%2.91%9/26/20229/30/2022Positive News
iShares Core S&P U.S. Growth ETF stock logo
IUSG
iShares Core S&P U.S. Growth ETF
9/23/2022$0.2520$0.169049.11%1.23%9/26/20229/30/2022Positive News
IMCV
iShares Morningstar Mid-Cap Value ETF
9/23/2022$0.4150$0.275050.91%2.94%9/26/20229/30/2022Positive News
iShares ESG MSCI USA Leaders ETF stock logo
SUSL
iShares ESG MSCI USA Leaders ETF
9/23/2022$0.3030$0.219038.36%1.93%9/26/20229/30/2022Positive News
iShares ESG Advanced MSCI USA ETF stock logo
USXF
iShares ESG Advanced MSCI USA ETF
9/23/2022$0.1270$0.093036.56%1.8%9/26/20229/30/2022Positive News
FTRI
First Trust Indxx Global Natural Resources Income ETF
9/22/2022$0.4470$0.2859.64%14.74%9/23/20229/30/2022Positive News
DVOL
First Trust Dorsey Wright Momentum & Low Volatility ETF
9/22/2022$0.1050$0.074041.89%1.69%9/23/20229/30/2022Positive News
High Trading Volume
FAB
First Trust Multi Cap Value AlphaDEX Fund
9/22/2022$0.31$0.243027.57%1.98%9/23/20229/30/2022Positive News
FAD
First Trust Multi Cap Growth AlphaDEX Fund
9/22/2022$0.1240$0.102021.57%0.55%9/23/20229/30/2022Positive News
First Trust California Municipal High Income ETF stock logo
FCAL
First Trust California Municipal High Income ETF
9/22/2022$0.10$0.09505.26%2.53%9/23/20229/30/2022
First Trust Capital Strength ETF stock logo
FTCS
First Trust Capital Strength ETF
9/22/2022$0.2560$0.179043.02%1.51%9/23/20229/30/2022Positive News
First Trust Large Cap Core AlphaDEX Fund stock logo
FEX
First Trust Large Cap Core AlphaDEX Fund
9/22/2022$0.3530$0.241046.47%1.91%9/23/20229/30/2022Positive News
FKU
First Trust United Kingdom AlphaDEX Fund
9/22/2022$0.6970$0.66904.19%10.6%9/23/20229/30/2022Positive News
Gap Down
First Trust Managed Municipal ETF stock logo
FMB
First Trust Managed Municipal ETF
9/22/2022$0.11$0.10801.85%2.68%9/23/20229/30/2022Positive News
FMHI
First Trust Municipal High Income ETF
9/22/2022$0.1450$0.143.57%3.78%9/23/20229/30/2022Short Interest ↑
News Coverage
FNK
First Trust Mid Cap Value AlphaDEX Fund
9/22/2022$0.1830$0.145026.21%1.87%9/23/20229/30/2022Positive News
First Trust Mid Cap Core AlphaDEX Fund stock logo
FNX
First Trust Mid Cap Core AlphaDEX Fund
9/22/2022$0.2980$0.196052.04%1.46%9/23/20229/30/2022Positive News
FPA
First Trust Asia Pacific Ex-Japan AlphaDEX Fund
9/22/2022$0.2330$0.165041.21%3.9%9/23/20229/30/2022Positive News
First Trust Large Cap Value AlphaDEX Fund stock logo
FTA
First Trust Large Cap Value AlphaDEX Fund
9/22/2022$0.3430$0.273025.64%2.31%9/23/20229/30/2022Positive News
First Trust Large Cap Growth AlphaDEX Fund stock logo
FTC
First Trust Large Cap Growth AlphaDEX Fund
9/22/2022$0.2850$0.1290120.93%1.32%9/23/20229/30/2022Positive News
First Trust Senior Loan Fund stock logo
FTSL
First Trust Senior Loan Fund
9/22/2022$0.21$0.165027.27%5.66%9/23/20229/30/2022Positive News
First Trust Nasdaq Food & Beverage ETF stock logo
FTXG
First Trust Nasdaq Food & Beverage ETF
9/22/2022$0.10$0.075033.33%1.58%9/23/20229/30/2022Positive News
FTXH
First Trust Nasdaq Pharmaceuticals ETF
9/22/2022$0.0910$0.0380139.47%1.5%9/23/20229/30/2022Positive News
FTXL
First Trust Nasdaq Semiconductor ETF
9/22/2022$0.1240$0.098026.53%0.98%9/23/20229/30/2022Positive News
First Trust Nasdaq Bank ETF stock logo
FTXO
First Trust Nasdaq Bank ETF
9/22/2022$0.2050$0.19604.59%3.08%9/23/20229/30/2022Positive News
FVC
First Trust Dorsey Wright Dynamic Focus 5 ETF
9/22/2022$0.1190$0.071067.61%1.44%9/23/20229/30/2022Positive News
First Trust Small Cap Value AlphaDEX Fund stock logo
FYT
First Trust Small Cap Value AlphaDEX Fund
9/22/2022$0.1610$0.125028.80%1.54%9/23/20229/30/2022Positive News
How to Invest in Stocks with Increasing Dividends

Dividend increases are one way to identify ideal value stocks

One key to successful dividend investing is identifying companies that have a history of increasing their dividend yield over time. As dividend yields go up, it typically causes share prices to increase. This is a win-win for investors as they generate regular dividend income while seeing the value of their shares increase. In this article, we’ll take a look at how investors can find stocks that are increasing their dividends and how to maximize their gain from those investments

What is a Dividend?

A dividend is a payment made to shareholders that comes out of a company’s profit. There are two metrics that investors monitor closely. The first is the dividend yield which reflects the value of the dividend relative to the company’s share price. The second is the payout ratio which is the percentage of profit that the company pays out as a dividend.

A dividend is declared and usually pays out quarterly. However, there are some companies that pay a monthly dividend. Still others pay a single, annual dividend. Investors that are looking for income as well as reasonable growth are attracted to dividend stocks.

Why Do Companies Increase Dividends?

Companies increase their dividend yield for several reasons.

  • The most common reason is because their net profits are increasing. As net profits increase, there is more money to return to shareholders.
  • A second reason is that a company may have a change in strategy. If a company is forecasting an economic slowdown, they may choose to put less money into capital projects. Conversely, a rapidly growing company may want to consolidate its capital gains and reassess their market position before continuing their growth strategy.
  • A third reason is in an effort to attract more equity investors.

In all cases, the choice to increase a dividend is means that a company is leaving a larger portion of their profits available to be returned to investors as dividends.

Understanding the Distinction Between Dividend Yield and Dividend Payout Ratio

The dividend yield is the ratio of a company’s annual dividend compared to its share price represented as a percentage. To calculate dividend yield, let’s look at this example:

  • Company A announces a $2 per share annual dividend. The stock costs $40 per share.
  • Company B announces a $1 per share annual dividend. Their stock also costs $40 per share.

To calculate the yield, you would simply divide the announced per share annual dividend by the share price.

  • For company A, that would be 2/40 = 5%
  • For company B, that would be 1/40 = 2.5%

Simply put, investing $10,000 in Company A would produce $500 of annual dividend income. That same $10,000 in Company B would produce $250 in annual dividend income. Assuming all other fundamentals were the same, income-oriented investors would prefer to invest in Company A because of the higher yield.

The dividend payout ratio (also known as simply the payout ratio) gives investors an idea of how much profit a company is returning to shareholders as opposed to how much money they are keeping on hand for reinvestment, to pay off debt, or to hold as cash (i.e. retained earnings). The formula for the dividend payout ratio is as follows:

  • Dividend Payout Ratio = Dividends Paid/Net Income

Some companies will pay out 100% of their income to shareholders. An investor should expect a company’s payout ratio to be higher if they are a mature, established company. When a company has a high percentage of retained earnings, it can try the patience of investors.

What Are the Qualities of Companies That Increase Their Dividends?

Companies that pay dividends are typically mature companies in what are considered defensive stocks (utilities, consumer staples, etc.). These stocks do not generate the same capital growth as high growth stocks so they offer a dividend to help reward shareholders.

There are many companies that have a solid track record of raising their dividends. The best of the best have royal titles: princes, aristocrats, and kings.

  • Dividend princes have raised their dividend for at least 10 years.
  • Dividend aristocrats have raised their dividend for at least 25 years.
  • Dividend kings have raised their dividend for at least 50 years.

How to Invest in Stocks with Increasing Dividends

Step One: Choose wisely

Once you’ve looked at a company’s dividend yield and dividend payout ratio, it’s still important to choose wisely. Although a dividend is generally considered to be a sign that a company is healthy, that is not always the case. Keep in mind that a dividend is an alternative measure to capital growth. Growth investors would rather invest in companies that are generating impressive revenue and plowing that money back into their business to stimulate even more growth.

A company like Coca-Cola (NYSE:KO) continues to grow year after year (it’s a favorite of Warren Buffett). However, much of Coke’s appeal is in its dividend that is both consistent and growing every year. That brings up the importance of an increasing dividend. Just because a company has a reputation for offering a dividend, investors should still expect a level of dividend growth to increase their total return.  

Also, remember that just because a company announces a dividend does not mean they have to pay it. If a company runs into financial difficulty, dividends are usually the first thing to get cut. An example of this occurred at the onset of the Covid-19 pandemic when many dividend paying companies suspended or cut their dividends in anticipation of weak revenue and/or earnings.

Any company that has both the desire and the ability to generate increased dividend payments for their shareholders is a stock worth considering for an investor’s portfolio.

Step Two: Look to reinvest dividends

Many, but not all, dividend-paying companies allow individuals to reinvest dividends through a dividend reinvestment plan (DRIP). Automatic reinvestment is a strategy for investors who do not need the regular income that is generated by dividends.

Here’s a simplified example of how a DRIP works. Company XYZ has a share price of $25 per share and a dividend yield of 5%. If an investor buys 100 shares, they will earn a yearly dividend of $125 ($2,500 x 5%). If they choose to reinvest that dividend, at the end of the year they will have purchased an additional five shares of Company XYZ stock and the value of their holdings assuming the share price remained at $25 would be $2,625. It’s a wash, right? But what if the share price climbs to $30 by the end of the year? Assuming the dividend yield does not increase, the payout would be $125, but the 105 shares would now be worth $3,150.

Some companies allow investors to put in additional money (with some minimum and maximum restrictions). An investor will typically pay market price for those shares, although some companies will sell these shares at a slight discount.

There are two caveats for investors looking to buy additional shares separate from dividends being reinvested. First, is that it can take some time to sell the shares that you buy directly from the company. Second, it is important to remember that every dividend reinvestment represents shares that are being purchased at a different price. This means that the capital gains are going to be different for every transaction. Therefore, when you go to sell these shares all of those capital gains have to be accounted for.

Step Three: Look at dividend mutual funds and ETFs

Investing in a dividend mutual fund or ETF is a good option for beginning investors and investors who don’t want to take the time to choose their own stocks or track individual stocks once they buy them. These funds are typically comprised of multiple dividend-paying stocks. If you believe in the idea of not putting all your eggs in one basket, this may be a great option.

However, choosing a fund can be like walking into a Baskin-Robbins. There are a lot of varieties and it’s still up to you to decide on which funds are right for you. You’ll want to look at the stocks that are included and check their dividend yield, their consistency with paying the dividend over time, their expense ratio (low is good) and the size of the company, or market capitalization. From lowest to highest risk, there are large caps, mid-caps and small caps.

Why do Companies Cut Their Dividends?

If dividends are attractive to some investors why do companies cut their dividend? As we mentioned above, a company that is not rapidly growing may take on debt to spur growth. If the company takes on a lot of debt in a short period of time, the dividend may have to get cut in order for the company to service the payment of the debt.

Beware of Chasing a Dividend Yield

One trap that can befall dividend investors is chasing a high yield. In some cases, a company’s dividend yield exists for good reason. But in some cases, a high dividend yield is a warning that the company is not financially stable. That’s why it’s always good to follow the strategy of looking at a company’s fundamentals to understand if their dividend yield and/or payout ratio is sustainable and also looking for companies with a history of increasing yields.

Some Final Thoughts on Investing in Stocks with Increasing Dividends

Investing in dividend stocks is a time-honored way of growing wealth slowly. Following the simple three-part strategy of choosing a company wisely, looking to reinvest your dividends, and if necessary investing in dividend mutual funds and ETFs are good ways to identify and take advantage of dividend stocks that are increasing their dividends on a regular basis.

Dividend investing is not about chasing the highest yield you can find. There are often reasons why a company is offering a high yield. Like many things in life, if it looks too good to be true, it usually is.

 

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