Happy Monday,
It’s Zach here with another weekly investing update for you!
We just got a flood of new dividend declarations with increases ranging from a tiny 0.6% all the way up to 30%. This week, I want to break down why some of the most famous Dividend Aristocrats and Kings are stalling out, while high-growth compounders are leaving them in the dust.
Plus, I just released a brand-new free tool to help you track all of your stocks automatically.
Topics Covered:
High Growth vs. Slow Growth Dividend Stocks
Dividend Raises This Week
The Key Story
High Growth vs. Slow Growth Dividend Stocks
Watch here: https://youtu.be/LenFvm4laVw
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Not all dividend stocks are created equal. Right now, we are seeing a massive divergence between legacy brands and high-growth compounders. Here is what I am seeing in the latest batch of earnings and dividend declarations:
The Slow Growers (Aristocrats & Kings)
These companies are the "Old Reliables". They offer safe payouts and consistent history, but their dividend growth has severely plateaued.
IBM (IBM): Raised their dividend by just 0.6%. Despite a recent stock price bump, their free cash flow per share actually hasn't grown since 2009.
Procter & Gamble (PG): Raised by 3%. A great, stable company to hold, but they are relying heavily on price increases to fight inflation and are no longer a high-growth business.
Johnson & Johnson (JNJ): Raised by 3.1%. A conservative raise that shows their recent stock price boom isn't fully translating into aggressive dividend hikes yet.
Colgate-Palmolive (CL): Raised by 1.9%. This is a downward trend compared to their historical 5-year average.
The High-Growth Compounders
These companies might start with lower initial dividend yields, but their massive annual raises and underlying earnings growth are driving incredible total returns.
Dell (DELL): Smashed it with a 20% raise. Dell isn't just a boring PC company anymore. Their server and networking revenue exploded from $6B to $14.8B in the past year thanks to the AI data center buildout.
Costco (COST): Delivered a 13.1% raise. Costco's secret isn't retail; it's their high-margin membership subscription model, which is practically pure profit and commands a premium valuation.
Waste Management (WM): Raised by 14.5%. A dominant market position allows them to consistently outpace consumer packaged goods companies with steady double-digit growth.
Nasdaq (NDAQ): Raised by 15%. This is an acceleration from their prior raises, signaling massive management confidence in their recurring revenue.
Micron Technology (MU): Dropped a massive 30% raise, riding the peak bull market of the current cyclical memory boom.
🚀 Free Tool: The Ultimate Dividend Stock Watchlist
To help you track these raises and optimize your buy points, I just launched a brand new, completely free Dividend Stock Watchlist for Google Sheets and Excel.
Auto-pulls live dividend data so you never have to copy-paste again.
Includes a Yield Target Tracker to tell you if a stock is a "Buy" based on your specific goals.
Features a Yield History Analyzer to help you buy at the high end of a stock's historical yield range.
Want the full deep dive into the financials of these exact stocks? Check out my full analysis on the channel: Why Dividend Growth Stocks Are Destroying Dividend Kings.
📅 Keep Investing. Stay informed.
Dividend News
🚀 Dividend Raises This Week
FIX - Comfort Systems raises dividend by 14.3% to $0.80
NDAQ - Nasdaq raises dividend by 15% to $0.31
IBM - IBM raises dividend by 0.6% to $1.69
SO - Southern Co raises dividend by 2.7% to $0.76
KMI - Kinder Morgan raises quarterly dividend by 1.7% to $0.2975/share
PH - Parker-Hannifin raises quarterly dividend by 11.1% to $2.00/share
OTIS - Otis Worldwide raises quarterly dividend by 4.8% to $0.44/share
AMP - Ameriprise Financial raises quarterly dividend by 6.3% to $1.70/share
PFG - Principal Financial Group raises dividend by 2.5% to $0.82
IBKR - Interactive Brokers Group raises quarterly dividend by 9.4% to $0.0875/share
SUN - Sunoco LP raises dividend by 6.2% to $0.9899
AGCO - AGCO raises quarterly dividend by 3.4% to $0.30/share
POR - Portland General Electric raises dividend by 5% to $0.5513
NOK - Nokia Oyj raises dividend by 33% to €0.04
How did you like today’s newsletter?
📅 Keep Investing. Stay informed.
– Zach
Founder, Dividend Data
P.S. Questions or suggestions? Reply to this email—I'd love your feedback!
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Disclaimer: Dividend Dividend (Dividend Data LLC) is not a professional financial service. All materials released from Dividend Data (Dividend Data LLC) are for educational and entertainment purposes. Dividend Data (Dividend Data LLC) is not a replacement for a professional's opinion. Contributors to the Dividend Data (Dividend Data LLC) might have equities mentioned in the newsletter