Shares have been on a rocky trip to begin the yr, however revenue buyers have a silver lining: Corporations have continued to announce dividend will increase. The S & P 500 limped via February, dropping 1.4%, with considerations over inflation, President Donald Trump’s impending tariffs and worsening geopolitical dangers weighing on investor sentiment. On Friday, the broad-based index briefly slipped into adverse territory for 2025. Nonetheless, firms have been reporting their fourth-quarter studies – offering one other market catalyst. As of Friday, about 97% of the S & P 500 reported earnings, with greater than 75% surpassing analysts’ estimates, per FactSet. A number of of these S & P 500 names have been bearing excellent news for revenue buyers. Within the week ended Feb. 25, there have been 20 S & P 500 firms that introduced dividend hikes, in response to knowledge from JPMorgan. There have been no new cuts or suspensions introduced in that point, the agency mentioned. Heavy hitters saying dividend hikes embrace Coca-Cola , which boosted its payout by about 5.2% to 51 cents per share. “Associated to capital return, we have now an unwavering precedence to develop our dividend, as we have achieved for 62 consecutive years,” mentioned John Murphy, chief monetary officer of Coca-Cola, on the corporate’s Feb. 11 earnings name. “Our dividend is supported by our long-term free money movement era. In 2024, dividends paid as a p.c of adjusted free money movement was 73%,” he added. Different large names which have joined the ranks as of late embrace Occidental Petroleum , Dwelling Depot and Basic Motors . Dividend raises in 2025 Yr to this point via Feb. 18, greater than 80 S & P 500 firms introduced dividend will increase, in response to knowledge from S & P Dow Jones Indices. See beneath for a couple of of the names that raised their revenue funds. Semiconductor producer Analog Units lifted its quarterly dividend cost by 8% to 99 cents a share . The inventory is holding up in what’s been a tough patch for tech names, up greater than 6% in 2025. The tech sector of the S & P 500 is off 6% yr to this point. This hike marks the twenty first consecutive yr of upper dividends for Analog Units. The inventory has a present dividend yield of 1.7%. Benchmark Fairness Analysis initiated protection of the inventory earlier this month with a purchase score and a worth goal of $245, reflecting greater than 9% upside from Thursday’s shut. “We imagine ADI is likely one of the most engaging alternatives throughout the high-performance analog semiconductor panorama, uniquely positioned to drive sustained development, margin enlargement and compelling shareholder returns,” wrote analyst David Williams. “Vital money producing mannequin and beneficiant capital allocation technique targets return of 100% of [free cash flow] to shareholders,” he added. Of the 32 analysts overlaying Analog Units, 20 charge it a purchase or robust purchase, and consensus worth targets name for upside of 13%, in response to LSEG. Walmart , a dividend aristocrat – that’s, a reputation that raised dividends for at the very least 25 years, introduced a 52nd yr of dividend hikes. The massive-box retailer lifted its dividend by 13% to 94 cents a share – or 4 quarterly funds of $0.235 per share. The corporate posted beats on the highest and backside strains within the fiscal fourth quarter, nevertheless it warned that revenue development will gradual . This cued a 6.5% slide for Walmart shares after the retailer issued its outcomes. “Money movement remained robust. And as we introduced this morning, we’re happy to lift the dividend by 13% this yr, the most important enhance in over a decade, reinforcing our dedication to robust money returns to shareholders,” mentioned CFO John David Rainey on Walmart’s earnings name. The Avenue was additionally unfazed by the post-earnings slip in shares, with JPMorgan analyst Christopher Horvers calling it a “Close to-Time period Shopping for Alternative.” He charges it chubby, saying its U.S. same-store gross sales development is “prime quality” as Walmart continues to achieve market share. Analysts are sticking by the inventory, with 41 out of 43 score it a purchase or robust purchase, per LSEG. Consensus worth targets see 12% upside from present ranges. Walmart shares are up greater than 8% in 2025, and the inventory has a present dividend yield of 1%. Looking for the appropriate names Traders who’re keen to do the due diligence for particular person dividend-paying shares will need to regulate firms’ steadiness sheet and free money movement. They may also need to monitor the consistency of an organization’s earnings and get into the small print of its dividend payout ratio. Certainly, a excessive dividend payout ratio means that an organization is paying out extra of its earnings towards shareholders, relatively than reinvesting within the enterprise. Excessive dividend yields are additionally price watching, as they could recommend that an organization’s share worth is on a downward trajectory. For buyers who’d relatively take a diversified strategy towards including dividend payers, the S & P 500 Dividend Aristocrats ETF (NOBL) might be a superb place to begin. Family names together with Emerson Electrical , Clorox and Walmart are amongst its holdings.
