In this article, we discuss 10 Dow stocks that will boost their dividends soon. You can skip our detailed analysis of dividend stocks and their performance over the years, and go directly to read These 5 Dow Stocks Will Boost Their Dividends Soon.
The Dow Jones Industrial Average, known as the Dow, is a famous stock market index in the US and worldwide. It follows the performance of 30 companies traded on US stock exchanges. These companies represent different industries, giving the index a diverse view of the stock market. In 2023, the DJIA closed the year with a notable 13.7% increase, marking a significant gain for investors. Throughout the year, the index also achieved a new record high, signifying 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 seeking income from their investments. The “Dogs of the Dow” strategy is a well-known investment approach within the DJIA. It involves selecting and investing in stocks from the DJIA that have the highest dividend yield. The strategy has shown mixed performance over the years. In the last five years, the Dogs performed worse than the S&P 500 and the Dow on four occasions, including in 2023, as reported by Barron’s. The report also mentioned that over the span of 20 years from the end of 2023, the Dogs’ average annual return was slightly above 8%, including dividends. This trails behind the S&P 500 by a little over 1% each year. However, at the end of 2018, when observing from the end of 2003, the Dogs were actually leading the S&P 500 by approximately 1% per year.
Many companies within the DJIA pride themselves on a history of dividend growth and maintain a consistent track record of increasing payouts to shareholders. However, economic challenges, shifts in industry trends, or company-specific circumstances may lead certain Dow components to maintain stable but unchanged dividend levels, or in some cases, even decrease their dividends. For example, Walgreens Boots Alliance, Inc. (NASDAQ:WBA) recently made headlines with a significant decision to reduce its dividend payouts. This decision is notable because it breaks a streak of 48 consecutive years of increasing dividends. The company had been known for its consistent and long-standing commitment to raising dividends, making this move quite unexpected and significant within the financial community. However, certain firms within the DJIA, like Johnson & Johnson (NYSE:JNJ) and The Procter & Gamble Company (NYSE:PG), have consistently increased their dividends for many years. In this article, we will discuss some of the Dow stocks that will boost their dividend soon.
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Our Methodology:
To compile this list, we examined the 30 stocks listed in the Dow Jones Industrial Average and specifically focused on dividend-paying stocks among them. From this pool, we picked out three stocks that have recently increased their dividend payouts within the last three months. Additionally, we identified seven stocks that, judging by their historical dividend growth patterns in previous years, show strong potential to raise their dividends in the coming months. This analysis was based on the companies’ track records of dividend growth, indicating a likelihood of continued upward trends in their dividend payments. The stocks are ranked in ascending order based on their current and anticipated dates for dividend growth.
10. JPMorgan Chase & Co. (NYSE:JPM)
Last Dividend Hike: September 2023
JPMorgan Chase & Co. (NYSE:JPM) is a leading global financial services firm that operates in various segments of the financial industry. On December 12, the company announced a quarterly dividend of $1.05 per share, having raised it in September 2023. As of January 5, the stock has a dividend yield of 2.45%.
In the third quarter of 2023, JPMorgan Chase & Co. (NYSE:JPM) posted revenue of roughly $40 billion, which showed a 22% growth from the same period last year. 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 having stakes in JPMorgan Chase & Co. (NYSE:JPM), growing from 106 in the previous quarter. These stakes have a total value of more than $6.6 billion.
ClearBridge Investments mentioned JPMorgan Chase & Co. (NYSE:JPM) in its Q3 2023 investor letter. Here is what the firm has to say:
“In addition to business models that support biodiversity, it is also important to provide financing for efforts to improve biodiversity. Large financial firms such as ClearBridge holding JPMorgan Chase & Co….