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

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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 with certain group characteristics. The lowest market capitalization is nearly $13 billion (Allegion Plc (NYSE:ALLE). On the upper end of the spectrum, Gilead Sciences, Inc. (NASDAQ:GILD) has the largest market capitalization of nearly $85 billion, for an average capitalization of $33.4 billion for all 10 equities. The Financials sector is best represented with three equities. Two equities each come from the Industrials, IT & Communications and Utilities sectors, with the Health Care sectors represented by a single equity.

Old Dominion Freight Line, Inc. (NASDAQ:ODFL) has the shortest current streak of consecutive annual dividend hikes with two years. Alternatively, Eversource Energy (NYSE:ES) has the longest streak with 19 consecutive annual dividend boosts. On average, the 10 equities on the list below have paid dividends between three and 24 years for an average of almost 11 years of dividend distributions and 8.4 years of consecutive annual dividend hikes.

The most recent dividend boosts range from a nominal $0.02 amount (Xylem, Inc., (NYSE:XYL) to a high of $0.10 (Prudential Financial, Inc., NYSE:PRU) for an average $0.044 hike. In percentage terms, the companies boosted their respective dividends from 6.1% (Eversource Energy, NYSE:ES) to 35.3 (Old Dominion Freight Line, Inc., NASDAQ:ODFL) or 12% on average.

With pay dates ranging from March 12 to May 6, 2020, investors can enjoy dividend yields between 0.4% and 4.6%, with an average yield of 2.2%. Sorted by their most recent dividend boost percentage, below are the 10 large-cap stocks that declared 6%-plus dividend hikes last week.

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Large-Cap Stocks Going Ex-Dividend Next Week: #10

Eversource Energy (NYSE:ES)

          Previous Dividend Amount: $0.535

          New Dividend Amount: $0.5675

          Dividend increase : $0.0325, (6.07%)

Dividend Yield: 2.49%

Ex-Dividend Date: March 03, 2020

Pay Date: March 31, 2020

Market Cap: $29.55 billions

Sector: Utilities

First Dividend: 2008

Consecutive Annual Hikes: 19

December 24, 2019 Closing Price: $91.26

Total Return (1Y, 3Y, 5Y): 33.70%, 73.50%, 93.76%

 

Large-Cap Stocks Going Ex-Dividend Next Week: #9

Brookfield Infrastructure Partners LP (NYSE:BIP)

          Previous Dividend Amount: $0.5025

          New Dividend Amount: $0.5375

          Dividend increase : $0.035, (6.97%)

Dividend Yield: 3.89%

Ex-Dividend Date: February 27, 2020

Pay Date: March 31, 2020

Market Cap: $13.43 billions

Sector: Utilities

First Dividend: 2008

Consecutive Annual Hikes: 11

December 24, 2019 Closing Price: $55.22

Total Return (1Y, 3Y, 5Y): 43.88%, 70.24%, 107.97%

 

Large-Cap Stocks Going Ex-Dividend Next Week: #8

Gilead Sciences, Inc. (NASDAQ:GILD)

          Previous Dividend Amount: $0.63

          New Dividend Amount: $0.68

          Dividend increase : $0.05, (7.94%)

Dividend Yield: 4.06%

Ex-Dividend Date: March 12, 2020

Pay Date: March 30, 2020

Market Cap: $84.70 billions

Sector: Health Care

First Dividend: 2015

Consecutive Annual Hikes: 4

December 24, 2019 Closing Price: $66.95

Total Return (1Y, 3Y, 5Y): 7.26%, 12.28%, -22.98%

 

Large-Cap Stocks Going Ex-Dividend Next Week: #7

Hartford Financial Services Group, Inc. (NYSE:HIG)

          Previous Dividend Amount: $0.30

          New Dividend Amount: $0.325

          Dividend increase : $0.025, (8.33%)

Dividend Yield: 2.21%

Ex-Dividend Date: February 28, 2020

Pay Date: April 02, 2020

Market Cap: $21.23 billions

Sector: Financials

First Dividend: 1996

Consecutive Annual Hikes: 9

December 24, 2019 Closing Price: $58.90

Total Return (1Y, 3Y, 5Y): 23.92%, 30.52%, 56.05%

 

Large-Cap Stocks Going Ex-Dividend Next Week: #6

Xylem, Inc. (NYSE:XYL)

          Previous Dividend Amount: $0.24

          New Dividend Amount: $0.26

          Dividend increase : $0.02, (8.33%)

Dividend Yield: 1.17%

Ex-Dividend Date: February 26, 2020

Pay Date: March 26, 2020

Market Cap: $16.05 billions

Sector: Industrials

First Dividend: 2011

Consecutive Annual Hikes: 8

December 24, 2019 Closing Price: $89.13

Total Return (1Y, 3Y, 5Y): 23.61%, 91.58%, 161.03%

 

Large-Cap Stocks Going Ex-Dividend Next Week: #5

Intercontinental Exchange, Inc. (NYSE:ICE)

          Previous Dividend Amount: $0.275

          New Dividend Amount: $0.30

          Dividend increase : $0.025, (9.09%)

Dividend Yield: 1.27%

Ex-Dividend Date: March 16, 2020

Pay Date: March 31, 2020

Market Cap: $52.24 billions

Sector: Financials

First Dividend: 2013

Consecutive Annual Hikes: 6

December 24, 2019 Closing Price: $94.39

Total Return (1Y, 3Y, 5Y): 27.01%, 70.77%, 112.30%

 

Large-Cap Stocks Going Ex-Dividend Next Week: #4

Prudential Financial, Inc. (NYSE:PRU)

          Previous Dividend Amount: $1.00

          New Dividend Amount: $1.10

          Dividend increase : $0.10, (10.00%)

Dividend Yield: 4.59%

Ex-Dividend Date: February 14, 2020

Pay Date: March 12, 2020

Market Cap: $38.57 billions

Sector: Financials

First Dividend: 2002

Consecutive Annual Hikes: 11

December 24, 2019 Closing Price: $95.95

Total Return (1Y, 3Y, 5Y): 7.17%, -1.70%, 42.71%

 

Large-Cap Stocks Going Ex-Dividend Next Week: #3

Activision Blizzard, Inc. (NASDAQ:ATVI)

          Previous Dividend Amount: $0.37

          New Dividend Amount: $0.41

          Dividend increase : $0.04, (10.81%)

Dividend Yield: 0.65%

Ex-Dividend Date: April 14, 2020

Pay Date: May 06, 2020

Market Cap: $48.25 billions

Sector: IT & Communications

First Dividend: 2010

Consecutive Annual Hikes: 9

December 24, 2019 Closing Price: $62.80

Total Return (1Y, 3Y, 5Y): 52.58%, 35.97%, 182.08%

 

Large-Cap Stocks Going Ex-Dividend Next Week: #2

Allegion Plc (NYSE:ALLE)

          Previous Dividend Amount: $0.27

          New Dividend Amount: $0.32

          Dividend increase : $0.05, (18.52%)

Dividend Yield: 0.92%

Ex-Dividend Date: March 16, 2020

Pay Date: March 31, 2020

Market Cap: $12.88 billions

Sector: IT & Communications

First Dividend: 2014

Consecutive Annual Hikes: 5

December 24, 2019 Closing Price: $138.57

Total Return (1Y, 3Y, 5Y): 50.44%, 96.68%, 146.42%

 

Large-Cap Stocks Going Ex-Dividend Next Week: #1

Old Dominion Freight Line, Inc. (NASDAQ:ODFL)

          Previous Dividend Amount: $0.17

          New Dividend Amount: $0.23

          Dividend increase : $0.06, (35.29%)

Dividend Yield: 0.41%

Ex-Dividend Date: March 03, 2020

Pay Date: March 18, 2020

Market Cap: $17.79 billions

Sector: Industrials

First Dividend: 2017

Consecutive Annual Hikes: 2

December 24, 2019 Closing Price: $222.87

Total Return (1Y, 3Y, 5Y): 57.74%, 143.45%, 198.45%

 


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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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