Upcoming Dividend Increases from Major Companies
As quarterly earnings season kicks off, many companies are expected to announce dividend increases in the coming months. While some of these will be modest adjustments, they should still provide reassurance to shareholders.
Wall Street seems optimistic; indeed, some analysts are suggesting that larger dividend increases could be on the horizon, potentially by as much as 39% or more.
This anticipated rise can be attributed to what some are calling the “dividend magnet” effect.
Take Lockheed Martin (LMT), for example. Historically, its stock price has closely followed its dividends, rarely veering off course.
Lockheed’s current yield might be a modest 2.5%, but for those who’ve held onto their shares for around 15 years, there’s a yield on cost of over 18%. That’s quite a payoff!
If you’re curious about potential dividend growth, here are five companies that seem well-positioned to increase their dividends soon. Last year, these firms offered generous rewards to shareholders, with raises ranging from 39% to even 100%.
Five High-Dividend Growth Stocks to Watch
Primerica (PRI)
Dividend yield: 1.6%
Projected increase in 2025: 39%
First quarter dividend announcement: Early February
Primerica, focused on insurance and financial products for middle-income families in the U.S. and Canada, has seen its dividends more than double in the past four years. The company has consistently reported revenue growth for a decade. Looking ahead, while profits will likely grow in 2025, rising living costs could temper expectations. The upcoming dividend increase, anticipated in February, is particularly interesting given last year’s impressive 40% hike.
Yum China Holdings (YUMC)
Dividend yield: 2.0%
Projected increase in 2025: 50%
First quarter dividend announcement: Early February
Yum China, which operates popular restaurants like KFC and Pizza Hut in China, has shown steady sales growth since separating from Yum Brands in 2016. The company plans a significant expansion, including 1,600–1,800 new restaurants by 2025. In 2025, it announced a dividend increase of 50% to 24 cents per share, which represented a notable improvement, especially as they aim to return $3 billion to shareholders by 2026.
Comfort Systems (FIX)
Dividend yield: 0.2%
Projected increase in 2025: 60%
First quarter dividend announcement: Late February
Comfort Systems specializes in maintaining and installing essential systems in commercial buildings, benefiting from increased demand in the technology sector. They’ve seen their dividend skyrocket by around 471% since 2020. Their impressive recent results suggest that more increases could be on the way, particularly with a dividend forecast announcement scheduled for late February.
Penske Automotive Group (PAG)
Dividend yield: 3.4%
Projected increase in 2025: 40.2%
First quarter dividend announcement: Late January to early February
Penske operates automotive dealerships globally and has been a consistent performer in dividend increases. Despite a temporary suspension in 2020, they resumed payments and are expected to continue increasing dividends. Investors should keep an eye on their upcoming announcement, which will likely reveal management’s confidence in the company’s outlook.
Howmet Aerospace (HWM)
Dividend yield: 0.2%
Projected increase in 2025: 100%
First quarter dividend announcement: Late January
Formed from the split of Arconic, Howmet specializes in aerospace products. Their dividends have increased significantly over the past five years, and an acquisition of a precision manufacturing firm is expected to boost future growth. Forecasts suggest robust revenue growth ahead, though it remains uncertain how this might translate into higher dividends, with an announcement expected in late January.
