QQQ   432.79 (+0.19%)
AAPL   188.32 (-0.58%)
MSFT   414.11 (+0.01%)
META   470.00 (+0.09%)
GOOGL   145.91 (+0.25%)
AMZN   169.84 (-0.40%)
TSLA   189.56 (+1.06%)
NVDA   696.41 (-0.65%)
NIO   5.82 (-0.68%)
AMD   169.35 (-0.93%)
BABA   70.74 (-3.94%)
T   16.82 (-2.94%)
F   12.83 (+0.23%)
MU   84.88 (-0.34%)
CGC   4.11 (-4.86%)
GE   139.07 (+0.41%)
DIS   110.54 (+11.50%)
AMC   4.09 (+3.81%)
PFE   27.56 (+0.00%)
PYPL   56.13 (-11.24%)
XOM   103.97 (+1.71%)
QQQ   432.79 (+0.19%)
AAPL   188.32 (-0.58%)
MSFT   414.11 (+0.01%)
META   470.00 (+0.09%)
GOOGL   145.91 (+0.25%)
AMZN   169.84 (-0.40%)
TSLA   189.56 (+1.06%)
NVDA   696.41 (-0.65%)
NIO   5.82 (-0.68%)
AMD   169.35 (-0.93%)
BABA   70.74 (-3.94%)
T   16.82 (-2.94%)
F   12.83 (+0.23%)
MU   84.88 (-0.34%)
CGC   4.11 (-4.86%)
GE   139.07 (+0.41%)
DIS   110.54 (+11.50%)
AMC   4.09 (+3.81%)
PFE   27.56 (+0.00%)
PYPL   56.13 (-11.24%)
XOM   103.97 (+1.71%)
QQQ   432.79 (+0.19%)
AAPL   188.32 (-0.58%)
MSFT   414.11 (+0.01%)
META   470.00 (+0.09%)
GOOGL   145.91 (+0.25%)
AMZN   169.84 (-0.40%)
TSLA   189.56 (+1.06%)
NVDA   696.41 (-0.65%)
NIO   5.82 (-0.68%)
AMD   169.35 (-0.93%)
BABA   70.74 (-3.94%)
T   16.82 (-2.94%)
F   12.83 (+0.23%)
MU   84.88 (-0.34%)
CGC   4.11 (-4.86%)
GE   139.07 (+0.41%)
DIS   110.54 (+11.50%)
AMC   4.09 (+3.81%)
PFE   27.56 (+0.00%)
PYPL   56.13 (-11.24%)
XOM   103.97 (+1.71%)
QQQ   432.79 (+0.19%)
AAPL   188.32 (-0.58%)
MSFT   414.11 (+0.01%)
META   470.00 (+0.09%)
GOOGL   145.91 (+0.25%)
AMZN   169.84 (-0.40%)
TSLA   189.56 (+1.06%)
NVDA   696.41 (-0.65%)
NIO   5.82 (-0.68%)
AMD   169.35 (-0.93%)
BABA   70.74 (-3.94%)
T   16.82 (-2.94%)
F   12.83 (+0.23%)
MU   84.88 (-0.34%)
CGC   4.11 (-4.86%)
GE   139.07 (+0.41%)
DIS   110.54 (+11.50%)
AMC   4.09 (+3.81%)
PFE   27.56 (+0.00%)
PYPL   56.13 (-11.24%)
XOM   103.97 (+1.71%)

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 dividend strength, earnings, valuation, analysts forecasts, and more.
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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.
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Analyst consensus is the average investment recommendation among Wall Street research analysts.
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CompanyAnnouncement DateAmountPrevious AmountIncrease AmountYieldEx-DatePayable DateIndicator(s)
Weyerhaeuser stock logo
WY
Weyerhaeuser
2/8/2024$0.20$0.195.26%2.42%3/22/2024Positive News
Primerica, Inc. stock logo
PRI
Primerica
2/8/2024$0.75$0.6515.38%1.27%3/12/2024Upcoming Earnings
News Coverage
The New York Times Company stock logo
NYT
New York Times
2/8/2024$0.13$0.1118.18%1.2%4/1/20244/18/2024Earnings Report
Manhattan Bridge Capital, Inc. stock logo
LOAN
Manhattan Bridge Capital
2/8/2024$0.1150$0.11252.22%9.9%4/9/20244/15/2024
First Industrial Realty Trust, Inc. stock logo
FR
First Industrial Realty Trust
2/8/2024$0.37$0.3215.63%2.4%3/27/20244/15/2024News Coverage
Positive News
Gap Up
High Trading Volume
Century Communities, Inc. stock logo
CCS
Century Communities
2/8/2024$0.26$0.2313.04%1.1%2/27/20243/13/2024Analyst Revision
Occidental Petroleum Co. stock logo
OXY
Occidental Petroleum
2/8/2024$0.22$0.1822.22%1.52%4/15/2024Upcoming Earnings
Analyst Revision
CME Group Inc. stock logo
CME
CME Group
2/8/2024$1.15$1.104.55%2.24%3/26/2024Upcoming Earnings
Analyst Revision
News Coverage
Positive News
Intercontinental Exchange, Inc. stock logo
ICE
Intercontinental Exchange
2/8/2024$0.45$0.427.14%1.41%3/14/20243/29/2024Earnings Report
Analyst Downgrade
News Coverage
Gap Up
High Trading Volume
The Hershey Company stock logo
HSY
Hershey
2/8/2024$1.37$1.192014.93%2.82%3/15/2024Analyst Report
News Coverage
High Trading Volume
Masco Co. stock logo
MAS
Masco
2/8/2024$0.29$0.28501.75%1.65%3/11/2024News Coverage
Gap Up
High Trading Volume
ITT Inc. stock logo
ITT
ITT
2/8/2024$0.3190$0.2910.00%1.01%3/7/20244/1/2024Analyst Downgrade
Analyst Revision
News Coverage
High Trading Volume
Ramaco Resources, Inc. stock logo
METC
Ramaco Resources
2/8/2024$0.1380$0.125010.40%3.16%2/29/20243/15/2024
X-Links Crude Oil Shares Covered Call ETN stock logo
USOI
X-Links Crude Oil Shares Covered Call ETN
2/7/2024$1.5447$0.842683.33%2/20/20242/26/2024
Brookfield Asset Management Ltd. stock logo
BAM
Brookfield Asset Management
2/7/2024$0.38$0.3218.75%3.82%2/28/20243/28/2024Earnings Report
Analyst Report
News Coverage
Herc Holdings Inc. stock logo
HRI
Herc
2/7/2024$0.6650$0.63255.14%1.78%2/20/20243/7/2024Upcoming Earnings
News Coverage
Trane Technologies plc stock logo
TT
Trane Technologies
2/7/2024$0.84$0.7512.00%1.23%2/29/20243/29/2024Earnings Report
Analyst Report
Insider Selling
News Coverage
Main Street Capital Co. stock logo
MAIN
Main Street Capital
2/7/2024$0.24$0.23502.13%6.37%2/7/20242/15/2024
Allegion plc stock logo
ALLE
Allegion
2/7/2024$0.48$0.456.67%1.51%3/29/2024News Coverage
Fox Co. stock logo
FOX
FOX
2/7/2024$0.26$0.248.33%3.54%3/5/20243/26/2024Earnings Report
Analyst Downgrade
News Coverage
American Assets Trust, Inc. stock logo
AAT
American Assets Trust
2/6/2024$0.3350$0.331.52%6.2%3/6/20243/21/2024News Coverage
AllianceBernstein Holding L.P. stock logo
AB
AllianceBernstein
2/6/2024$0.77$0.6518.46%9.29%2/16/20243/14/2024Earnings Report
News Coverage
Cognizant Technology Solutions Co. stock logo
CTSH
Cognizant Technology Solutions
2/6/2024$0.30$0.293.45%1.54%2/16/20242/28/2024Earnings Report
Analyst Report
Analyst Revision
News Coverage
DHT Holdings, Inc. stock logo
DHT
DHT
2/6/2024$0.22$0.1915.79%7.99%2/20/20242/28/2024Earnings Report
Analyst Upgrade
News Coverage
Amdocs Limited stock logo
DOX
Amdocs
2/6/2024$0.4790$0.435010.11%2.11%3/27/20244/26/2024Earnings Report
Analyst Upgrade
Gilead Sciences, Inc. stock logo
GILD
Gilead Sciences
2/6/2024$0.77$0.752.67%4.14%3/14/20243/28/2024Earnings Report
Analyst Report
Analyst Revision
News Coverage
Equity LifeStyle Properties, Inc. stock logo
ELS
Equity LifeStyle Properties
2/6/2024$0.4770$0.44706.71%2.87%3/27/20244/12/2024Positive News
Midland States Bancorp, Inc. stock logo
MSBI
Midland States Bancorp
2/6/2024$0.31$0.303.33%5.11%2/15/20242/23/2024Analyst Revision
News Coverage
American Financial Group, Inc. stock logo
AFG
American Financial Group
2/6/2024$2.50$1.5066.67%2/15/20242/28/2024Earnings Report
Analyst Downgrade
Analyst Revision
News Coverage
Gap Down
Prudential Financial, Inc. stock logo
PRU
Prudential Financial
2/6/2024$1.30$1.254.00%4.76%2/16/20243/14/2024Earnings Report
Analyst Upgrade
News Coverage
RenaissanceRe Holdings Ltd. stock logo
RNR
RenaissanceRe
2/6/2024$0.39$0.382.63%0.67%3/14/20243/29/2024Analyst Report
Yum China Holdings, Inc. stock logo
YUMC
Yum China
2/6/2024$0.16$0.1323.08%1.58%3/4/20243/26/2024Earnings Report
News Coverage
DuPont de Nemours, Inc. stock logo
DD
DuPont de Nemours
2/6/2024$0.38$0.365.56%2.31%2/28/20243/15/2024Earnings Report
Analyst Upgrade
Xylem Inc. stock logo
XYL
Xylem
2/6/2024$0.36$0.339.09%1.2%2/20/20243/20/2024Earnings Report
Analyst Report
Analyst Revision
News Coverage
3M stock logo
MMM
3M
2/6/2024$1.51$1.500.67%6.44%2/15/20243/12/2024Positive News
ChampionX Co. stock logo
CHX
ChampionX
2/5/2024$0.0950$0.085011.76%1.31%4/4/20244/26/2024Earnings Report
News Coverage
Otter Tail Co. stock logo
OTTR
Otter Tail
2/5/2024$0.4680$0.43806.85%1.99%2/14/20243/8/2024Upcoming Earnings
FirstService Co. stock logo
FSV
FirstService
2/5/2024$0.25$0.225011.11%0.6%3/27/20244/5/2024Analyst Downgrade
News Coverage
Rexford Industrial Realty, Inc. stock logo
REXR
Rexford Industrial Realty
2/5/2024$0.4175$0.389.87%3.2%3/27/20244/15/2024Analyst Downgrade
News Coverage
Tractor Supply stock logo
TSCO
Tractor Supply
2/5/2024$1.10$1.036.80%1.88%2/23/20243/12/2024Earnings Report
Analyst Revision
CNA Financial Co. stock logo
CNA
CNA Financial
2/5/2024$2.44$1.6250.62%3.8%2/16/20243/7/2024Earnings Report
Analyst Downgrade
Analyst Revision
Magnolia Oil & Gas Co. stock logo
MGY
Magnolia Oil & Gas
2/5/2024$0.13$0.115013.04%2.62%2/15/20243/1/2024Upcoming Earnings
News Coverage
Simon Property Group, Inc. stock logo
SPG
Simon Property Group
2/5/2024$1.95$1.902.63%5.7%3/7/20243/29/2024Earnings Report
Kforce Inc. stock logo
KFRC
Kforce
2/2/2024$0.38$0.365.56%2.24%3/14/20243/29/2024Earnings Report
Analyst Downgrade
Analyst Revision
News Coverage
Tradeweb Markets Inc. stock logo
TW
Tradeweb Markets
2/2/2024$0.10$0.0911.11%0.41%2/29/20243/15/2024Earnings Report
Analyst Report
News Coverage
United States Lime & Minerals, Inc. stock logo
USLM
United States Lime & Minerals
2/2/2024$0.25$0.2025.00%0.4%2/22/20243/15/2024Positive News
Postal Realty Trust, Inc. stock logo
PSTL
Postal Realty Trust
2/2/2024$0.24$0.23751.05%6.8%2/15/20242/29/2024Positive News
Brookfield Renewable Partners L.P. stock logo
BEP
Brookfield Renewable Partners
2/2/2024$0.3550$0.33805.03%5.59%2/28/20243/28/2024Earnings Report
Analyst Downgrade
Brookfield Renewable Co. stock logo
BEPC
Brookfield Renewable
2/2/2024$0.3550$0.33805.03%5.23%2/27/20243/28/2024
Chevron Co. stock logo
CVX
Chevron
2/2/2024$1.63$1.517.95%4.28%2/15/20243/11/2024Earnings Report
Analyst Report
Knight-Swift Transportation Holdings Inc. stock logo
KNX
Knight-Swift Transportation
2/2/2024$0.16$0.1414.29%1.08%3/7/20243/25/2024Positive News
Rogers Communications Inc. stock logo
RCI
Rogers Communications
2/2/2024$0.3742$0.363.94%3.1%3/8/20244/3/2024Analyst Revision
Positive News
Church & Dwight Co., Inc. stock logo
CHD
Church & Dwight
2/2/2024$0.2838$0.27254.13%1.12%2/14/20243/1/2024Earnings Report
Analyst Report
Insider Selling
News Coverage
The Cigna Group stock logo
CI
The Cigna Group
2/2/2024$1.40$1.2313.82%1.82%3/5/20243/21/2024Earnings Report
Analyst Report
Analyst Revision
UFP Industries, Inc. stock logo
UFPI
UFP Industries
2/1/2024$0.33$0.2065.00%1.1%2/29/20243/15/2024
HighPeak Energy, Inc. stock logo
HPK
HighPeak Energy
2/1/2024$0.04$0.025060.00%1.21%2/29/20243/25/2024Positive News
Napco Security Technologies, Inc. stock logo
NSSC
Napco Security Technologies
2/1/2024$0.10$0.0825.00%1.12%2/29/20243/22/2024Earnings Report
Analyst Report
Analyst Revision
News Coverage
Positive News
MFS High Income Municipal Trust stock logo
CXE
MFS High Income Municipal Trust
2/1/2024$0.0140$0.01307.69%4.67%2/13/20242/29/2024Positive News
Exponent, Inc. stock logo
EXPO
Exponent
2/1/2024$0.28$0.267.69%1.43%3/7/20243/22/2024Earnings Report
Analyst Revision
PriceSmart, Inc. stock logo
PSMT
PriceSmart
2/1/2024$0.58$0.4626.09%1.5%2/14/20242/29/2024
GPIX
Goldman Sachs S&P 500 Core Premium Income ETF
2/1/2024$0.3158$0.30314.21%2/2/20242/8/2024Positive News
GSK plc stock logo
GSK
GSK
2/1/2024$0.3564$0.33984.88%3.4%2/22/20244/11/2024
Polaris Inc. stock logo
PII
Polaris
2/1/2024$0.66$0.651.54%2.9%2/29/20243/15/2024Analyst Revision
Camden Property Trust stock logo
CPT
Camden Property Trust
2/1/2024$1.03$1.003.00%4.3%3/27/20244/17/2024Earnings Report
Analyst Report
Analyst Revision
Positive News
Baker Hughes stock logo
BKR
Baker Hughes
2/1/2024$0.21$0.205.00%2.93%2/12/20242/23/2024
Brookfield Infrastructure Co. stock logo
BIPC
Brookfield Infrastructure
2/1/2024$0.4050$0.38255.88%4.5%2/28/20243/29/2024News Coverage
Positive News
Brookfield Infrastructure Partners L.P. stock logo
BIP
Brookfield Infrastructure Partners
2/1/2024$0.4050$0.38206.02%5.09%2/28/20243/29/2024Analyst Revision
Franco-Nevada Co. stock logo
FNV
Franco-Nevada
2/1/2024$0.36$0.345.88%1.3%3/13/20243/28/2024Analyst Revision
News Coverage
Microchip Technology Incorporated stock logo
MCHP
Microchip Technology
2/1/2024$0.45$0.43902.51%2.1%2/22/20243/8/2024Earnings Report
CMS Energy Co. stock logo
CMS
CMS Energy
2/1/2024$0.5150$0.48755.64%3.61%2/9/20242/29/2024Earnings Report
Analyst Report
Positive News
Quest Diagnostics Incorporated stock logo
DGX
Quest Diagnostics
2/1/2024$0.75$0.715.63%2.34%4/5/20244/22/2024Earnings Report
Analyst Downgrade
Arrow Financial Co. stock logo
AROW
Arrow Financial
1/31/2024$0.27$0.258.00%4.47%2/9/20242/23/2024
International Bancshares Co. stock logo
IBOC
International Bancshares
1/31/2024$0.66$0.634.76%2.5%2/14/20242/28/2024Positive News
AvalonBay Communities, Inc. stock logo
AVB
AvalonBay Communities
1/31/2024$1.70$1.653.03%3.82%3/27/20244/15/2024Earnings Report
Analyst Revision
Esquire Financial Holdings, Inc. stock logo
ESQ
Esquire Financial
1/31/2024$0.15$0.125020.00%1.19%2/14/20243/1/2024
Novo Nordisk A/S stock logo
NVO
Novo Nordisk A/S
1/31/2024$0.6640$0.2209200.60%0.9%3/22/20244/2/2024Options Volume
OFG Bancorp stock logo
OFG
OFG Bancorp
1/31/2024$0.25$0.2213.64%2.72%3/27/20244/15/2024Positive News
Unitil Co. stock logo
UTL
Unitil
1/31/2024$0.4250$0.40504.94%3.42%2/13/20242/29/2024Upcoming Earnings
Positive News
Western Asset Total Return ETF stock logo
WBND
Western Asset Total Return ETF
1/31/2024$0.0874$0.08483.07%2/1/20242/6/2024Positive News
Western Asset Short Duration Income ETF stock logo
WINC
Western Asset Short Duration Income ETF
1/31/2024$0.10$0.086315.85%2/1/20242/6/2024Positive News
USBF
iShares USD Bond Factor ETF
1/31/2024$0.3393$0.297514.05%2/1/20242/7/2024Positive News
iShares iBonds Dec 2026 Term Treasury ETF stock logo
IBTG
iShares iBonds Dec 2026 Term Treasury ETF
1/31/2024$0.0743$0.06917.55%2/1/20242/7/2024Positive News
USFI
BrandywineGLOBAL - U.S. Fixed Income ETF
1/31/2024$0.0870$0.0091857.10%2/1/20242/7/2024Positive News
FB Financial Co. stock logo
FBK
FB Financial
1/31/2024$0.17$0.1513.33%1.6%2/12/20242/27/2024
QQQY
Defiance Nasdaq 100 Enhanced Options Income ETF
1/31/2024$0.85$0.6237.10%57.4%2/1/20242/6/2024Positive News
Cencora, Inc. stock logo
COR
Cencora
1/31/2024$0.51$0.2350117.02%0.93%2/8/20242/26/2024Analyst Report
News Coverage
CF Industries Holdings, Inc. stock logo
CF
CF Industries
1/31/2024$0.50$0.4025.00%2.65%2/14/20242/29/2024Upcoming Earnings
Eversource Energy stock logo
ES
Eversource Energy
1/31/2024$0.7150$0.67505.93%5.27%3/4/20243/29/2024Upcoming Earnings
Analyst Revision
Old Dominion Freight Line, Inc. stock logo
ODFL
Old Dominion Freight Line
1/31/2024$0.52$0.4030.00%0.53%3/5/20243/20/2024Analyst Report
Vanguard Total World Bond ETF stock logo
BNDW
Vanguard Total World Bond ETF
1/30/2024$0.1604$0.14748.82%2/1/20242/6/2024Positive News
Vanguard Total International Bond ETF stock logo
BNDX
Vanguard Total International Bond ETF
1/30/2024$0.0859$0.07938.32%2/1/20242/6/2024
Vanguard Total Bond Market ETF stock logo
BND
Vanguard Total Bond Market ETF
1/30/2024$0.2119$0.20105.44%2/1/20242/6/2024
Vanguard Short-Term Corporate Bond ETF stock logo
VCSH
Vanguard Short-Term Corporate Bond ETF
1/30/2024$0.2340$0.21478.99%2/1/20242/6/2024News Coverage
Positive News
Vanguard Long-Term Treasury Index ETF stock logo
VGLT
Vanguard Long-Term Treasury Index ETF
1/30/2024$0.1879$0.17656.46%2/1/20242/6/2024Positive News
Vanguard Long-Term Corporate Bond ETF stock logo
VCLT
Vanguard Long-Term Corporate Bond ETF
1/30/2024$0.3398$0.32604.23%2/1/20242/6/2024Positive News
Vanguard Intermediate-Term Treasury Index ETF stock logo
VGIT
Vanguard Intermediate-Term Treasury Index ETF
1/30/2024$0.1674$0.16700.24%3.37%2/1/20242/6/2024Positive News
Vanguard Intermediate-Term Corporate Bond ETF stock logo
VCIT
Vanguard Intermediate-Term Corporate Bond ETF
1/30/2024$0.2810$0.26137.54%2/1/20242/6/2024Positive News
Artisan Partners Asset Management Inc. stock logo
APAM
Artisan Partners Asset Management
1/30/2024$1.02$0.6556.92%5.5%2/14/20242/29/2024Positive News
Vanguard Short-Term Treasury Index ETF stock logo
VGSH
Vanguard Short-Term Treasury Index ETF
1/30/2024$0.1980$0.19501.54%4.06%2/1/20242/6/2024Positive News
Vanguard Mortgage-Backed Securities ETF stock logo
VMBS
Vanguard Mortgage-Backed Securities ETF
1/30/2024$0.1430$0.14190.78%3.72%2/1/20242/6/2024Positive News

Key Points

  • Dividend increases signal to investors that the company is performing well financially and should be able to sustain future payouts. 
  • Automatically reinvest dividends through a DRIP plan if you don't need regular income.
  • Focus on companies with consistently rising dividend records as they are reliable businesses delivering value.
  • 5 stocks we like better than Coca-Cola

If you want to maximize your returns and take advantage of the benefits of dividend increases, the key is to know how to capture the value they can bring. While not every company will offer dividends, many companies do, which can help your portfolio grow over time, especially when dividends increase.

In this article, we’ll discuss the various ways you can capture the benefits of dividend increases, and we’ll talk about what to be aware of when picking stocks for long-term dividend growth.

With the right tools and knowledge, you can use dividend increases to build your portfolio. By understanding how to leverage dividend increases, you can build wealth and create a secure financial future.

What Are Dividend Increases? 

Dividend increases are when a company’s board of directors chooses to raise the amount of dividends that shareholders receive in cash or through stock repurchases. Dividend increases today can help you capture the benefits of long-term growth as well as provide you with a steady stream of income. Dividend yields also tend to increase with dividend increases, since companies are willing to pay more for shareholders’ loyalty.

Why Do Companies Increase Dividends? 

The urge to increase dividend yields is strong. Companies find themselves in a tug-of-war between reinvesting their profits into capital projects and leaving more available for shareholders. So a decision for a dividend increase often reflects a change in their strategy, as well as a drive to attract more equity investors. Meanwhile, as net profits continue to rise, it creates an ever-increasing pot of money to be distributed to loyal shareholders.

Companies often increase their dividends when there is a strong outlook for the company's future. For example, Bank of America (NYSE: BAC) increased its dividend in 2019 after analysts predicted that the financial services provider would benefit from an improving economy and higher interest rates. In addition to increasing its dividend, Bank of America also increased its stock buyback program by $31 billion as an additional reward for shareholders. Similarly, JPMorgan Chase & Co. (NYSE: JPM) raised its quarterly dividend in 2021, acknowledging that it had achieved impressive profits during the previous year and was well-positioned to continue growing in the future. These examples of recent dividend increases show how companies can use dividend increases to demonstrate confidence in their long-term prospects and create value for shareholders.

How to capture the benefits of dividend increases infographic

Understanding Dividend Yield and Dividend Payout Ratio 

As an investor looking to benefit from upcoming dividend increases, one of your first steps should be to understand the concepts of dividend yield and dividend payout ratio.

Dividend Yield 

The dividend yield is a measure of the income you as an investor can get from a stock, represented as a percentage. Here's an example to help you understand it better: let's say Company A has an annual dividend of $2 per share and its stock is priced at $40 per share. For Company B, the annual dividend is only $1 per share, but their shares are still worth $40 each. 

To calculate their yields, we just divide the per-share dividend by the price. That would mean Company A has a 5 percent yield ($2 divided by $40), while Company B would be 2.5%. 

That means if you were to invest $10,000 into either company, Company A will give back $500 in annual dividends whereas Company B will give you back only $250. So if all other things are equal, if you're looking for income, you should choose Company A due to its higher yield.

MarketBeat provides a calculator to calculate each stock's dividend yield (for example, JPM, below) and compare them. Click on "dividends" and then "open in dividend yield calculator."

dividend yield calculator on MarketBeat

Dividend Payout Ratio 

The dividend payout ratio (also known as the payout ratio) tells you how much of a company's profit is being returned to shareholders, rather than kept on hand for reinvestment. The equation to figure this out is: Dividends Paid / Net Income. Some companies give all their profits back to shareholders. Generally, more established companies have higher payout ratios. MarketBeat provides dividend payout ratios on each stock's page under "dividends" (see below for JPM).

Dividend payout ratio of JP Morgan Chase
 

Which Companies Increase Dividends? 

When looking for companies that increase dividends, it's important to look for those with a track record of consistently increasing their payout. This generally means the company has been performing well and generating enough profits to maintain or even increase its dividend payments. Here we'll look at three key groups in the stock market that have impressive histories of increasing dividends.

Dividend Princes

A Dividend Prince is a company that has increased its dividend for at least 10 consecutive years. These companies are typically mature companies in sectors like utilities, consumer staples, healthcare and telecommunications. Choosing these can provide stability to your portfolio along with steady income.

Dividend Aristocrats 

A Dividend Aristocrat is a company that has increased its dividend payments for at least 25 consecutive years. These are usually more established companies with more consistent earnings growth and higher dividend yields than the average stock on the market.

Dividend Aristocrats on MarketBeat

Dividend Kings

A Dividend King is a company that has raised its dividend payment each year for 50 consecutive years or more – an impressive feat for any business. These organizations usually have wide moats protecting them from competition, financial soundness and proven management teams that continuously add value.

How Dividend Increases Benefit Your Portfolio 

When companies increase their dividend, it's usually a sign that their earnings are growing and the company is in a financially solid position. As an investor, this means you get more of the profits each quarter without having to worry about market fluctuations or erosion due to inflation. Additionally, steady dividend increases can help build up your cash flow over time – meaning you have more money available for future investments and purchases.

And when well-established companies with strong track records of performance (such as those mentioned earlier) increase their dividends, they often become "blue chip" stocks — companies whose share prices tend to outperform many others on the index over the long term.

How to Invest in Stocks with Increasing Dividends

When companies declare their latest dividend increases, you need to understand what this means and how to take full advantage of it. Below, we've assembled some of the most common techniques smart investors use.

Reinvest Your Dividends 

When a company declares an increase in its dividend, the simplest way to capture the benefits is by reinvesting the dividends back into the stock. This way, you can build your position over time and benefit from compounding returns, which can be significant. Many, but not all, dividend-paying companies allow you to reinvest dividends through a dividend reinvestment plan (DRIP). Automatic reinvestment is a strategy for those who don't need the regular income generated by dividends.

Dividend reinvestment plans (DRIPs) allow you to automatically reinvest dividends. For example, if you buy 100 shares of Company XYZ at $25 per share with a dividend yield of 5 percent, you'll earn a yearly dividend of $125, and on a DRIP, purchase an additional five shares of the company's stock. If the share price rises by the end of the year, the 105 shares will now be worth more than the original investment. Some companies also allow you to make additional investments at market or discounted prices.

Focus on Dividend Growth Stocks 

Another way to use MarketBeat dividend increases is by focusing on dividend growth stocks, or stocks with consistently increasing dividends over time. Companies that regularly raise their dividends are often stable and reliable businesses that have proven track records of consistently delivering value to shareholders.

Dividend Mutual Funds and ETFs

Investing in a dividend mutual fund or exchange-traded fund (ETF) can be a good option for beginner investors. These funds typically comprise multiple stocks, so you're not putting all your eggs in one basket. Some of the most popular dividend ETFs include the Vanguard High Dividend Yield ETF (NYSEARCA: VYM) and Schwab US Dividend Equity ETF (NYSEARCA: SCHD)

However, you still need to choose the right fund. Look at the stocks included and check their dividend yield, consistency with paying the dividend and their market capitalization, which is their share price multiplied by the number of outstanding shares. Also check the fund's expense ratio, or how much of its assets go towards administrative and operating expenses. 

Check MarketBeat for this information (for example, VYM, below).

 
Vanguard High Dividend Yield ETF

Beware of Chasing a Dividend Yield 

Dividend-hungry investors, beware: a high dividend yield can sometimes be your undoing. While some companies truly have strong fundamentals that support high yields, sometimes it’s a trap. To avoid getting stuck, always look at the company's fundamentals and see if the dividend is sustainable. If you want to maximize your profits without sacrificing safety, search for companies with a track record of steadily increasing yields.

Dividend Increases: Adding Value 

You likely now understand what it means when companies make increased dividend announcements, and how to take full advantage of them. Focusing on dividend growth stocks can also help capture more value than static dividend payers. Remember, look at the overall yield rather than just the current rate. With careful analysis, investing in stocks with increasing dividends can be a prime way to generate consistent returns in the long run.

FAQs 

Do you still have questions about how to benefit from dividend increases? Here are some answers to frequently asked questions about how companies add value by increasing their payouts to shareholders.

What does it mean when dividends increase? 

It means that the company is paying out more money to shareholders than before. This could be a result of increased profits, or simply an attempt to make the stock more attractive to potential investors. Generally, when dividends increase, so does the value of the stock for its existing holders, but keep in mind that dividend increases aren't always an indication of strong financial health. They could be a sign that the company is dealing with financial difficulties and trying to attract new investors by offering higher yields.

Why is increasing dividends a good thing? 

Increasing dividends can be an ideal way for companies to reward shareholders and incentivize them to remain invested long-term. It can also indicate financial strength. Dividend growth stocks often outperform other investments, as they provide consistent returns over time, and can help capture more value in the form of compounding returns.

How often do companies raise dividends?

The frequency of dividend increases varies depending on the company. Generally, as a company grows and makes more cash, it can pay out larger dividends or increase them at a faster rate. Companies that consistently perform well over time may choose to increase dividends every year or even quarterly. On the other hand, some companies prefer to keep their dividends static or only increase them in years when their profits are high. Ultimately, it's up to the board of directors to decide whether or not to raise the dividend payout.

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