Free Trial

3 Dividend Stocks Raising Payouts—and Backing It Up With Results

Coin Stack percentages rising

Key Points

  • Three companies are increasing their dividend payouts to demonstrate strength in their underlying financials and potential upside in the coming months.
  • Wall Street analysts see their forecasts land on the more conservative spectrum, calling for revisions.
  • Price action will stay bullish as valuation boosts inevitably come from these dividend boosts.
  • Looking to Export and Analyze Clorox Data? Unlock 5 Weeks of MarketBeat All Access for Just $5. Claim Your Limited-Time Discount.

Not all dividends are paid out equally; some companies try to create a “trap” by overpaying on a quarter’s dividend, attracting buyers through a short-term high dividend yield that seems too good to pass up. The realization comes much later, though, that these companies can’t afford these payouts, straining the financial profile altogether and having to decrease or cancel these dividends later.

Today’s list of dividend increases focuses on the exact opposite of this situation. These companies and their solid fundamentals demonstrate that they can not only afford today’s increases but also continue to reward shareholders with rising income potential in the coming quarters and years.

This should also generate demand and upside for the stock itself during a market filled with macroeconomic uncertainty.

This is why considering names like Clorox Co. NYSE: CLX, Wells Fargo & Co. NYSE: WFC, and Sunoco LP NYSE: SUN can be an excellent combination for investors to keep in their dividend income watchlists. This group, which includes financial sector, consumer staples, and energy stocks, provides enough diversification and financial strength to carry portfolios forward.

Clorox Stock’s Discount Makes a Great Yield

Clorox Dividend Payments

Dividend Yield
3.97%
Annual Dividend
$4.96
Dividend Increase Track Record
47 Years
Dividend Payout Ratio
76.07%
Next Dividend Payment
Aug. 29
CLX Dividend History

Now that shares of Clorox have fallen to 72% of their 52-week high, their attractive dividend payout has only become more of a target after a recent increase. As stocks in other (hotter) market areas take the bulk of the bullish price action and attention, it makes sense to see a more stable company like Clorox fall behind.

However, this is precisely when a competent management team typically lays out further shareholder benefits, rewarding those willing to stick around for the “bad” times in the price performance. Now paying $4.88 per dividend share, Clorox investors can enjoy a 3.94% dividend yield today.

Although not the highest and still below the benchmark 10-year treasury bond yields of 4.2%, this dividend provides an added benefit to the upside that can be achieved by buying Clorox stock today. Even though Wall Street analysts rate the stock as a Reduce, recent data may soon change that.

The company’s latest quarterly earnings show a net earnings per share (EPS) figure of $2.87, representing a significant beat over the expected $2.24 number from Wall Street, showing analysts that their current valuations and assumptions may have been on the more conservative side, and calling for a revision (likely higher).

Strong Outlooks Boost Wells Fargo’s Payout

Wells Fargo & Company Dividend Payments

Dividend Yield
2.06%
Annual Dividend
$1.60
Dividend Increase Track Record
4 Years
Dividend Payout Ratio
27.40%
Next Dividend Payment
Sep. 1
WFC Dividend History

Now that the market expects the Federal Reserve (the Fed) to lower interest rates in late 2025, sharp investors can directly spot the benefits of investing in a commercial bank like Wells Fargo, since lower rates typically translate to more demand for credit products like mortgages and credit cards.

Of course, it should raise the bank’s expected EPS figures, which it has. Wall Street analysts now expect to see a report $1.73 in EPS for the second quarter of 2026, an increase of 12% above today’s $1.54 in reported EPS, which was also a beat over the expected $1.41.

Chances are, these forecasts for next year are also conservative, setting Wells Fargo up for another beat. With this confidence in mind, and the right macro backdrop, the bank’s management boosted its dividend payout to $1.8 per share, or an annualized yield of 2.3%.

While not the most exciting yield, investors should take this as a sign of stable and strong financials, with some upside added. With a current forward price-to-earnings (P/E) valuation of 12.6x, Wells Fargo stock is well below its longer-term average of 18.0x, giving investors a decent gap to be closed on the upside.

The Best of Both Worlds: Sunoco Stock

Sunoco Dividend Payments

Dividend Yield
6.89%
Annual Dividend
$3.59
Dividend Increase Track Record
3 Years
Dividend Payout Ratio
176.85%
Next Dividend Payment
Aug. 19
SUN Dividend History

As oil prices remain low for an extended period, more investors will likely overlook energy stocks like Sunoco. However, management is aware of the cyclical nature of oil and is already preparing its shareholders for a reality check.

After boosting its dividend payout to $3.63 per share, investors can now beat the benchmark and any inflation fears through an annualized yield of 6.68% today. The stock's ability to afford this much of an increase and also trade at 90% of its 52-week high may have given Wall Street analysts something to think about.

That thought led to a consensus rating making Sunoco stock a Buy, with Jeremy Tonet from JPMorgan Chase & Co. giving a new valuation target slightly above consensus for $67 per share, which also implies an additional 25% upside potential from where the stock trades today, giving investors the best of both income and upside potential benefits.

Should You Invest $1,000 in Clorox Right Now?

Before you consider Clorox, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Clorox wasn't on the list.

While Clorox currently has a Reduce rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

(Almost)  Everything You Need To Know About The EV Market Cover

Looking to profit from the electric vehicle mega-trend? Enter your email address and we'll send you our list of which EV stocks show the most long-term potential.

Get This Free Report
Gabriel Osorio-Mazilli
About The Author

Gabriel Osorio-Mazilli

Contributing Author

Equity Research, Dividend Investing, ETFs, Global Markets

Like this article? Share it with a colleague.

Companies Mentioned in This Article

CompanyMarketRankâ„¢Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Sunoco (SUN)
3.2444 of 5 stars
$52.12-0.4%6.89%25.68Buy$64.75
Wells Fargo & Company (WFC)
4.6018 of 5 stars
$77.780.9%2.06%13.32Moderate Buy$80.39
Clorox (CLX)
4.5904 of 5 stars
$124.89-0.9%3.97%19.16Reduce$143.36
Compare These Stocks  Add These Stocks to My Watchlist 

Featured Articles and Offers

Recent Videos

3 Buy-the-Dip Stocks Poised to Rebound Soon
Quantum Boom: 3 Strong Picks with Lower Risk
3 Overlooked AI Stocks That Chipmakers Can’t Live Without

Stock Lists

All Stock Lists

Investing Tools

Calendars and Tools

Search Headlines