10 Large-Cap Stocks Declared 10%-Plus Dividend Hikes Last Week-2020-02-06

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Large-Cap Stocks

While dividend income distributions contribute significantly to return on shareholders’ investment, rising dividend payouts by large-cap stocks are even more important as a cornerstone of any long-term total return strategy and wealth creation.

Therefore, large-capitalization stocks that continue boosting their dividends should be the first place that investors look in search of viable investment candidates. Just last week, several hundred equities declared their dividend distributions for the upcoming period. However, while few cut their dividend distribution amount, most held the payouts at the same level as in the preceding period. Less than half of the equities that declared dividends last week boosted their dividend distribution amount and only a few dozens of these equities increased their dividend amount more than 10% for the next round of dividend distributions.

Furthermore, to narrow the list below to a more manageable size, even the equities that declared 10%-plus dividend boosts were subjected to additional constraints. To eliminate small companies and those that are still expanding — which can offer share price and dividend volatility — only large-cap equities with market capitalizations in excess of $10 billion made the final cut.

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Additionally, to ensure that declining share prices do not offset dividend income payouts and deliver overall losses, only equities whose total return over the trailing 12-month period exceeded the current dividend yield remained on the list below. A total return over the trailing year that exceeds the current dividend yield indicates that share price advanced over that period and contributed at least a small portion of the equities total return.

These several criteria delivered a group of 10 equities below that have the following overall characteristics. The lowest market capitalization is nearly $11 billion (Booz Allen Hamilton Holding Corporation, NYSE:BAH). On the upper end of the spectrum, S&P Global, Inc. (NYSE:SPGI) has the largest market capitalization in excess of $72 billion, for an average capitalization of nearly $30 billion for all 10 equities.

The Financials sector is best represented with four equities. Two equities each come from the Industrials and the IT & Communications sector, with the Materials and Services sectors represented by a single equity.

While some equities — eBay, Inc. (NASDAQ:EBAY) — only introduced dividend distributions last year, other equities on the list have been paying dividends for many decades, such as Air Products & Chemicals, Inc. (NYSE:APD) that paid its first dividend in 1954. Furthermore, Air Products & Chemicals also holds the distinction of most consecutive annual dividend hikes with 37 consecutive years. On average, the 10 equities on the list below have paid dividends for more than two decades and boosted their payout for more than six consecutive years.

The most recent boosts range from a nominal $0.01 amount (Teradyne, Inc., NASDAQ:TER) to a high of $0.18 (Air Products & Chemicals, Inc., NYSE:APD) for an average $0.065 hike. In percentage terms, the companies boosted their respective dividends from 11.1% (Teradyne, Inc., NASDAQ:TER) to 24.5% (The Blackstone Group, Inc., NYSE:BX) or 15.7% on average.

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With pay dates ranging from February 18 to May 11, 2020, investors can enjoy dividend yields between 0.6% and 3.8%, with an average yield of 1.6%. Excluding Invitation Homes, Inc. (NYSE:INVH), which currently has a payout ratio of more than 200%, the other nine equities offer payout ratios between 13% and 75%. This entire range and the 40% average payout ratio are sustainable and indicate that the equities should be able to maintain their respective dividend distributions, as well as continue their dividend hikes, at least in the near future. Sorted by their most recent dividend boost percentage, below are the 10 large-cap stocks that declared 10%-plus dividend hikes last week.

 

Large-Cap Stocks Declared 10%-Plus Dividend Hikes Last Week: #10

Teradyne, Inc. (NASDAQ:TER)

Previous Dividend Amount: $0.09

New Dividend Amount: $0.10

Dividend increase: $0.01, (11.10%)

Dividend Yield: 0.56%

Ex-Dividend Date: February 20, 2020

Pay Date: March 20, 2020

Market Cap: $11.94 billion

Sector: IT & Communications

First Dividend: 2014

Consecutive Annual Hikes: 1

December 24, 2019, Closing Price: $71.28

Total Return (1Y, 3Y, 5Y): 92.10%, 148.60%, 285.70%

 

Large-Cap Stocks Declared 10%-Plus Dividend Hikes Last Week: #9

Yum! Brands, Inc. (NYSE:YUM)

Previous Dividend Amount: $0.42

Dividend Amount: $0.47

Dividend increase: $0.05, (11.90%)

Dividend Yield: 1.76%

Ex-Dividend Date: February 13, 2020

Pay Date: March 06, 2020

Market Cap: $32.30 billion

Sector: Services

First Dividend: 2004

Consecutive Annual Hikes: 3

December 24, 2019 Closing Price: $106.78

Total Return (1Y, 3Y, 5Y): 15.00%, 67.90%, 114.90%

 

Large-Cap Stocks Declared 10%-Plus Dividend Hikes Last Week: #8

eBay, Inc. (NASDAQ:EBAY)

Previous Dividend Amount: $0.14

New Dividend Amount: $0.16

Dividend increase: $0.02, (14.30%)

Dividend Yield: 1.72%

Ex-Dividend Date: February 28, 2020

Pay Date: March 20, 2020

Market Cap: $29.55 billion

Sector: IT & Communications

First Dividend: 2019

Consecutive Annual Hikes: 1

December 24, 2019, Closing Price: $37.13

Total Return (1Y, 3Y, 5Y): 8.80%, 18.90%, 68.70%

 

Large-Cap Stocks Declared 10%-Plus Dividend Hikes Last Week: #7

Rollins, Inc. (NYSE:ROL)

Previous Dividend Amount: $0.105

New Dividend Amount: $0.12

Dividend increase: $0.015, (14.30%)

Dividend Yield: 1.23%

Ex-Dividend Date: February 07, 2020

Pay Date: March 10, 2020

Market Cap: $12.76 billion

Sector: Industrials

First Dividend: 1961

Consecutive Annual Hikes: 2

December 24, 2019, Closing Price: $38.98

Total Return (1Y, 3Y, 5Y): 6.90%, 70.10%, 178.40%

 

Large-Cap Stocks Declared 10%-Plus Dividend Hikes Last Week: #6

Booz Allen Hamilton Holding Corporation (NYSE:BAH)

Previous Dividend Amount: $0.27

New Dividend Amount: $0.31

Dividend increase: $0.04, (14.80%)

Dividend Yield: 1.59%

Ex-Dividend Date: February 13, 2020

Pay Date: February 28, 2020

Market Cap: $10.96 billion

Sector: Industrials

First Dividend: 2012

Consecutive Annual Hikes: 4

December 24, 2019, Closing Price: $78.17

Total Return (1Y, 3Y, 5Y): 51.70%, 134.70%, 180.90%

 

Large-Cap Stocks Declared 10%-Plus Dividend Hikes Last Week: #5

Invitation Homes, Inc. (NYSE:INVH)

Previous Dividend Amount: $0.13

New Dividend Amount: $0.15

Dividend increase: $0.02, (15.40%)

Dividend Yield: 1.91%

Ex-Dividend Date: February 11, 2020

Pay Date: February 28, 2020

Market Cap: $16.91 billion

Sector: Financials

First Dividend: 2017

Consecutive Annual Hikes: 3

December 24, 2019, Closing Price: $31.41

Total Return (1Y, 3Y, 5Y): 40.80%, 60.30%, 0.00%

 

Large-Cap Stocks Declared 10%-Plus Dividend Hikes Last Week: #4

Air Products & Chemicals, Inc. (NYSE:APD)

Previous Dividend Amount: $1.16

New Dividend Amount: $1.34

Dividend increase: $0.18, (15.50%)

Dividend Yield: 2.14%

Ex-Dividend Date: March 31, 2020

Pay Date: May 11, 2020

Market Cap: $55.23 billion

Sector: Materials

First Dividend: 1954

Consecutive Annual Hikes: 37

December 24, 2019, Closing Price: $250.28

Total Return (1Y, 3Y, 5Y): 51.70%, 86.40%, 95.00%

 

Large-Cap Stocks Declared 10%-Plus Dividend Hikes Last Week: #3

S&P Global, Inc. (NYSE:SPGI)

Previous Dividend Amount: $0.57

New Dividend Amount: $0.67

Dividend increase: $0.10, (17.50%)

Dividend Yield: 0.91%

Ex-Dividend Date: February 25, 2020

Pay Date: March 11, 2020

Market Cap: $72.04 billion

Sector: Financials

First Dividend: 1996

Consecutive Annual Hikes: 6

December 24, 2019, Closing Price: $294.77

Total Return (1Y, 3Y, 5Y): 54.80%, 148.40%, 224.00%

 

Large-Cap Stocks Declared 10%-Plus Dividend Hikes Last Week: #2

MarketAxess Holdings, Inc. (NASDAQ:MKTX)

Previous Dividend Amount: $0.51

New Dividend Amount: $0.60

Dividend increase: $0.09, (17.60%)

Dividend Yield: 0.70%

Ex-Dividend Date: February 11, 2020

Pay Date: February 26, 2020

Market Cap: $12.91 billion

Sector: Financials

First Dividend: 2009

Consecutive Annual Hikes: 6

December 24, 2019, Closing Price: $341.85

Total Return (1Y, 3Y, 5Y): 65.00%, 88.40%, 364.60%

 

Large-Cap Stocks Declared 10%-Plus Dividend Hikes Last Week: #1

The Blackstone Group, Inc. (NYSE:BX)

Previous Dividend Amount: $0.49

New Dividend Amount: $0.61

Dividend increase: $0.12, (24.50%)

Dividend Yield: 3.83%

Ex-Dividend Date: February 07, 2020

Pay Date: February 18, 2020

Market Cap: $42.02 billion

Sector: Financials

First Dividend: 2007

Consecutive Annual Hikes: 1

December 24, 2019, Closing Price: $63.73

Total Return (1Y, 3Y, 5Y): 89.80%, 127.90%, 103.60%

  


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Ned-Piplovic

 

Ned Piplovic is the assistant editor of website content at Eagle Financial Publications. He graduated from Columbia University with a Bachelor’s degree in Economics and Philosophy. Prior to joining Eagle, Ned spent 15 years in corporate operations and financial management. Ned writes for www.DividendInvestor.com and www.StockInvestor.com.


 

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