In recent market discussions, companies demonstrating significant dividend increases—ranging from 25% to over 120%—have gained considerable attention. Such substantial hikes not only reward existing shareholders but also attract new investors, often leading to remarkable rises in share prices. Companies like Graco (GGG), known for its fluid-handling systems serving diverse sectors from domestic to industrial, exemplify this trend well. The company has impressively increased its dividend by 720% over the past two decades, demonstrating a strong commitment to shareholder returns. This dedication to consistent dividend growth has resulted in Graco’s total return, including dividends, soaring by 975% during the same time frame. Despite a current yield of just over 1%, long-term investors are reaping a much more substantial 5% yield on their initial investment thanks to these ongoing dividend hikes.
Two more companies anticipated to announce their next dividend increases soon are Deere (DE) and Equinix (EQIX). Deere, a global leader in agricultural machinery and equipment, has been experiencing a tumultuous economic environment in 2024, seeing a decline in revenues and earnings due to a prolonged replacement cycle in agriculture. Despite this setback, the company has a strong history of dividend increases, with hikes occurring multiple times a year during robust periods. Its most recent hike last December saw a 22.5% increase, leaving investors eager to see how its upcoming announcement will reflect earnings recovery as they look toward 2025. On the other hand, Equinix, a leader in data center infrastructure, stands out in the REIT market with a sub-2% yield, despite a recent robust dividend increase of nearly 25%. As it prepares for its next announcement in late October or November, investors are keen to determine whether this marks a shift to a more aggressive dividend growth trajectory.
Host Hotels & Resorts (HST), a REIT specializing in hospitality, has demonstrated a commendable recovery from the pandemic’s effects. After suspending its dividend during 2020, the company reintroduced its payouts at reduced levels two years later, progressively raising them over subsequent quarters. Following this pattern, Host raised its dividend from 15 cents to 20 cents per share—an impressive 66% increase from the previous year. However, it has maintained this level for almost a year, prompting speculation about its future dividend policy and potential increases in December. Notably, HST has also resumed issuing special dividends alongside regular payouts, which can enhance returns significantly, now generating an approximate yield of 4.6%.
In the banking sector, First Citizens BancShares (FCNCA) has emerged as a notable player following its acquisition of the failed Silicon Valley Bank in 2023. The bank saw its revenues triple and net income surge tenfold after integrating the acquired assets, leading to a remarkable 119% hike in dividends to $1.64 per share. This rapid growth may not be easily sustainable, prompting stakeholders to watch for future announcements, potentially around late November, which could clarify the bank’s outlook on further growth and shareholder return strategy. In a similar cyclical space, Korn Ferry (KFY)—a consulting services provider—has enhanced its dividend from 10 cents initiated in 2015 to 37 cents, with 270% growth since 2021. Its recent raises suggest a proactive stance toward investor returns, and the expected hike by late November or early December could be a significant indicator of the company’s health moving forward, especially after a fiscal 2024 dip.
Overall, the focus on companies committed to dividend growth highlights a robust approach to investor relations and enhanced wealth generation through strategic payouts. Investors seeking consistent income and potential price appreciation should consider exploring these upcoming dividend announcements from reputable firms. By aligning investments with stocks showcasing sustained dividend hikes, investors position themselves to benefit from both immediate returns and long-term capital growth. Engaging with these selections can help in crafting a resilient portfolio aimed at income generation, particularly through dividends that continue to appreciate over time, as demonstrated by the patterns observed in Graco, Deere, Equinix, Host Hotels & Resorts, First Citizens BancShares, and Korn Ferry.
