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In this article, we will discuss 10 Dow stocks that are expected to increase their dividend soon. Skip the detailed analysis of dividend stocks and their performance over the years and read them directly. These 5 Dow Stocks Will Raise Their Dividends Soon.
The Dow Jones Industrial Average, also known as the Dow, is a well-known stock market index in the United States and around the world. It tracks the performance of 30 companies traded on U.S. stock exchanges. These companies represent a variety of industries, giving the index a diverse view of the stock market. In 2023, DJIA ended the year with a notable increase of his 13.7%, which was a big gain for investors. Throughout the year, the index has set new record highs, demonstrating the strength and upward momentum of the stock market.
Many of the companies included in the Dow are known for paying dividends. These dividends can be an attractive feature for investors looking for income from their investments. The “Dogs of the Dow” strategy is a well-known investment approach within the DJIA. This involves choosing and investing in stocks with the highest dividend yields from the DJIA. This strategy has had mixed performance over the years. Over the past five years, the Dogs have performed worse than the S&P 500 and the Dow four times, including in 2023, Barron’s reported. The report also noted that the Dogs’ average annual return over the 20-year period starting at the end of 2023 was just over 8%, including dividends. This beats the S&P 500 by just over 1% annually. However, as of the end of 2018, based on observations from the end of 2003, the Dogs were actually leading the S&P 500 by about 1% per year.
Many of the companies within the DJIA take pride in their history of dividend growth, maintaining a consistent track record of increasing dividends to shareholders. However, economic challenges, changing industry trends, or company-specific circumstances may cause certain Dow constituents to maintain stable dividend levels or even reduce their dividends. For example, Walgreens Boots Alliance, Inc. (NASDAQ:WBA) recently made headlines after making a significant decision to cut its dividend. This decision is notable in that it breaks the company’s 48-year record for dividend increases. The company is known for consistently increasing its dividend over long periods of time, making this move extremely unexpected and significant for the financial world. However, certain companies within the DJIA, such as Johnson & Johnson (NYSE:JNJ) and Procter & Gamble Company (NYSE:PG), have consistently increased their dividends over the years. In this article, we will discuss some of the Dow stocks that are expected to increase their dividend soon.
Francisco Amaral Leitao/shutterstock.com
Our methodology:
To create this list, we looked at the 30 stocks listed on the Dow Jones Industrial Average, focusing on the highest dividend stocks. From this pool, we picked three stocks that have increased their dividends within the past three months. Additionally, we’ve identified seven stocks that are likely to increase their dividends in the coming months, based on their historical dividend growth patterns over the past few years. This analysis is based on a company’s track record of dividend growth, indicating that dividend payments may continue to trend upward. Stocks are ranked in ascending order based on current and expected dates of dividend growth.
10. JPMorgan Chase & Co. (NYSE:JPM)
Last dividend increase: September 2023
JPMorgan Chase & Co. (NYSE:JPM) is one of the world’s leading financial services companies with operations in various areas of the financial industry. On December 12, the company announced a quarterly dividend of $1.05 per share, increasing in September 2023. The stock’s dividend yield as of January 5 is 2.45%.
In the third quarter of 2023, JPMorgan Chase & Co. (NYSE:JPM) had sales of approximately $40 billion, representing 22% year-over-year growth. During the quarter, the company returned $3.1 billion to shareholders through dividends.
At the end of Q3 2023, 109 hedge funds in Insider Monkey’s database reported holdings in JPMorgan Chase (NYSE:JPM), up from 106 in the previous quarter. did. These shares have a total value of more than $6.6 billion.
ClearBridge Investments mentioned JPMorgan Chase & Co. (NYSE:JPM) in its Q3 2023 investor letter. The company’s comments are as follows:
“In addition to business models that support biodiversity, it is also important to fund initiatives that improve biodiversity. Large financial companies such as ClearBridge Holding JPMorgan Chase & Co.. (NYSE:JPM) is playing a key role here through its green bond underwriting that supports natural capital protection. In 2021, JPM announced a goal to fund and advance $1 trillion in green initiatives by 2030, as part of a broader $2.5 billion Sustainable Development Goal. Green initiatives include conservation and biodiversity focused on improving terrestrial and aquatic biodiversity ecosystems and forests, as well as biodiversity-related areas such as water management, circular economy, and waste management. It is included.
As part of this goal, JPM served as lead underwriter for a $350 million green bond issued by The Nature Conservancy in 2022, the largest green bond issuance by a conservation nonprofit in history. With this publication, The Nature Conservancy will help avoid or sequester 3 billion tons of carbon dioxide equivalent (CO2e), conserve 650 million hectares of healthy land, 30 million hectares of freshwater, and 4 billion hectares of ocean. It is expected. ”
9. Honeywell International, Inc. (NASDAQ:HON)
Last dividend increase: September 2023
Honeywell International Inc. (NASDAQ:HON) is a multinational conglomerate that operates in various industries and offers a wide range of products and services. In the third quarter of 2023, the company had a strong cash position with operating cash flow of $1.8 billion and an operating cash flow margin of 19.6%. In addition to this, the company generated his free cash flow of $1.6 billion. The company returned $2 billion to shareholders through dividends during the quarter.
Honeywell International (NASDAQ:HON) last increased its dividend by 5% on September 29, 2023, resulting in a quarterly dividend of $1.08 per share. This is the company’s 14th dividend increase in 13 consecutive years. The stock’s dividend yield as of January 5 was 2.11%.
As of the end of the third quarter of 2023, 60 hedge funds tracked by Insider Monkey held shares in Honeywell International, Inc. (NASDAQ:HON), compared to 61 in the previous quarter. The consolidated value of these shares is more than $2.27 billion. Adage Capital Management was a major shareholder in the company during the third quarter with approximately 2 million shares.
8. Amgen (NASDAQ:AMGN)
Last dividend increase: December 2023
Amgen, Inc. (NASDAQ:AMGN) is a global biopharmaceutical company primarily focused on developing and manufacturing medicines to treat serious diseases. The company announced on December 12 that it would increase its quarterly dividend by 5.6% to $2.25 per share. The increase extends the company’s streak of dividend increases to his 11th year. As of January 5, the stock’s dividend yield is 2.97%.
Amgen, Inc. (NASDAQ:AMGN) generated more than $2.5 billion in free cash flow in the third quarter of 2023. Operating cash flow for the quarter was $2.8 billion. In addition to this, the company returned more than $1.1 billion to shareholders through dividends during the quarter.
The number of hedge funds tracked by Insider Monkey that own Amgen Inc. (NASDAQ:AMGN) stock increased from 57 last quarter to 60 in Q3 2023. The total value of these shares is more than $2.16 billion.
7. Chevron Corporation (NYSE:CVX)
Expected dividend increase month: January 2024
Chevron Corporation (NYSE:CVX) is one of the largest multinational energy companies with operations in various sectors of the energy industry. The company has a history of increasing dividends for 36 years, and last year on January 25th he announced a 6.3x increase in dividends. This announcement is consistent with the company’s historical pattern of increasing dividends at similar times in previous years. The company currently pays a quarterly dividend of $1.51 per share as of January 5th, giving it a dividend yield of 4.01%. This is one of the prominent Dow stocks that will soon increase its dividend.
In the third quarter of 2023, Chevron Corporation (NYSE:CVX) reported operating cash flow of $9.7 billion. Year-to-date, the company has returned approximately $20 billion to shareholders, representing a 27% increase from the previous year’s record high.
According to Insider Monkey’s database, Chevron Corporation (NYSE:CVX) was in 72 hedge fund portfolios at the end of Q3 2023, compared to 73 in the previous quarter. The total value of stocks held by these hedge funds exceeds $21.4 billion.
6. 3M Company (NYSE:MMM)
Expected dividend increase month: February 2024
American multinational conglomerate 3M Company (NYSE:MMM) is one of the Dow stocks expected to increase its dividend soon. In February 2023, the company increased its dividend for his 65th consecutive year, continuing its impressive track record of annual dividend increases. Based on past patterns, we expect the company to follow suit and announce a dividend increase in February of this year. Currently, the quarterly dividend is $1.50 per share and the dividend yield is 5.55%, as recorded on January 5th.
At the end of Q3 2023, 54 hedge funds in Insider Monkey’s database held shares in 3M Company (NYSE: MMM), up from 49 at the previous quarter. The total value of these stakes is over $818.6 million. Among those funds, Ken Griffin’s Citadel Investment Group was the company’s largest shareholder in the third quarter.
Click to keep reading to see which five Dow stocks are planning to raise their dividends soon.
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Disclosure. none. These Dow stocks will soon raise their dividends Originally published on Insider Monkey.
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