In partnership with

Dividend Download

Top dividend stocks & news

These Companies Just Raised Dividends

The stock market has faced a rough start in 2025, with the S&P 500 slipping over 2% in February amid concerns about inflation, geopolitical risks, and looming tariffs. At one point, the index even dipped into negative territory for the year. However, as companies continue reporting their fourth-quarter earnings, they are also providing a silver lining for income investors: steady dividend increases.

Strong Earnings and Dividend Growth

Despite market uncertainty, corporate earnings have been solid. Over 75% have exceeded analysts’ expectations. Many of these companies have also announced dividend hikes, reinforcing their commitment to returning capital to shareholders.

Data from JPMorgan indicates that in the week ending February 25, 20 S&P 500 companies raised their dividends, with no new cuts or suspensions.

Key Companies Increasing Dividends in 2025

Dividend growth has been widespread across sectors, with over 80 S&P 500 companies announcing increases as of mid-February, according to S&P Dow Jones Indices. Some of the most notable dividend hikes include:

• Analog Devices: The semiconductor company increased its quarterly dividend by 8% to $0.99 per share. The stock is up more than 6% in 2025, outperforming the broader tech sector, which has struggled year-to-date. Benchmark Equity Research recently initiated coverage on Analog Devices with a buy rating and a $245 price target, citing strong cash flow and shareholder returns.

• Walmart: A dividend aristocrat with a 52-year track record of increases, Walmart raised its dividend by 13% to $0.94 per share. Despite posting strong earnings, the company warned of slower profit growth, leading to a 6.5% post-earnings dip in share price. However, analysts remain bullish, with JPMorgan’s Christopher Horvers calling the pullback a buying opportunity. Walmart shares are up over 8% in 2025, with a current dividend yield of 1%.

• Meta Platforms: Meta Platforms may be new to paying dividends, but it is wasting no time in increasing them. On February 13, the company announced a 5% hike in its quarterly dividend to $0.525 per share. Even with the increase, the stock’s dividend yield remains a modest 0.3%, well below the S&P 500 average of 1.3%. However, Meta’s strong financials suggest room for future payout growth.

• Comcast: Unlike newer dividend payers, Comcast has a well-established track record of returning capital to shareholders. On January 30, the telecom and media giant announced a 6.5% dividend increase, marking its 17th consecutive year of payout growth. The new annualized dividend of $1.32 per share results in a yield of 3.6%, a more compelling level for income investors. Comcast also trades at an attractive valuation, with shares priced at just 9 times trailing earnings. However, it carries nearly $100 billion in debt, which could be a concern.

• Nexstar Media Group: On January 29, Nexstar Media Group announced its 12th consecutive dividend increase—a 10% hike. The company’s new annualized dividend of $7.44 per share translates to a yield of around 5% at current share prices, making it an attractive option for income investors. With media assets including The CW network, Nexstar reaches over 220 million people. While revenue growth has been inconsistent, the company has maintained profitability, typically posting profit margins around 10%. Its payout ratio of 44% remains reasonable, leaving room for further dividend increases even if top-line growth remains sluggish.

Other notable names increasing payouts include Coca-Cola, which boosted its dividend by 5.2% to $0.51 per share. The company has raised its dividend for 62 consecutive years, with its CFO, John Murphy, reaffirming Coca-Cola’s priority of growing its dividend, supported by strong cash flow.

Other major companies announcing dividend hikes include Occidental Petroleum, The company recently raised its dividend by 9% to $0.24 per share, for an annual payout of $0.96 per share. This gives investors a 1.98% yield at current prices.

Home Depot announced a 2.2% dividend increase, bringing the annual dividend to $9.20 per share. Lastly, and General Motors announced a 25% increase in its quarterly dividend, raising it from $0.12 per share to $0.15 per share. This change will take effect with the next planned dividend in April 2025, bringing GM's annual dividend to $0.60 per share.

Finding the Right Dividend Stocks

For investors looking to capitalize on dividend-paying stocks, careful evaluation is essential. Key factors to consider include:

• Balance sheet strength and free cash flow: A company’s ability to sustain and grow dividends depends on its financial health.

• Dividend payout ratio: A high ratio may indicate that a company is paying out most of its earnings instead of reinvesting in growth.

• Dividend yield: While an attractive yield is appealing, an unusually high yield can signal a declining share price.

For those preferring a diversified approach, the S&P 500 Dividend Aristocrats ETF (NOBL) offers exposure to companies with a history of increasing dividends, including names like Emerson Electric, Clorox, and Walmart.

As markets remain volatile, dividend-paying stocks continue to provide investors with stability and consistent income, making them a compelling option in uncertain times.

Resources

Calculators - Retirement, Budgeting, Investing

Dividend Center

Daily Finance Newsletter

Stock Deep Dives

👩🏽‍⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.