These Companies Recently Hiked Their Dividends - But Is It Enough?

In the midst of volatility and economic uncertainty, some companies are flourishing, causing the overall equity market to soar. Despite concerns regarding delayed rate cuts and growing socioeconomic turmoil, the benchmark S&P 500 index is up nearly 8% so far this year, while the tech-focused Nasdaq Composite Index has risen by approximately 6.5% year-to-date.

Established dividend-paying companies are typically considered ideal investments during periods of high volatility. Dividend hikes can serve as indicators of corporate health and prosperity as well as underscore the importance of companies’ commitment to rewarding shareholders.

Enbridge

Enbridge, Inc. ENB, one of the largest oil and gas companies in Canada, is known as one of the most reliable dividend stocks among the investor community. The company has raised its dividends for 29 consecutive years as of 2024, making it a Dividend Aristocrat. Notably, companies that hike their dividend payouts for 25 or more years in a row are termed Dividend Aristocrats.

Enbridge’s latest dividend hike was announced in November 2023, when the energy titan raised its quarterly payouts by 3.1% to $0.914. On an annual basis, Enbridge pays $3.66 per share in total dividends, yielding an impressive 7.35% on its current share price.

Enbridge’s common shares have maintained an impressive Compound Annual Growth Rate (CAGR) of 10% throughout the last 29 years. Moreover, the company’s four-year average dividend yield stands at a whopping 6.98%.

DICK’S Sporting Goods

DICK’S Sporting Goods, Inc. DKS has been benefitting from the current inflationary levels, as the company’s total sales amounted to $3.88 billion in the last quarter of 2023, marking its highest sales in history. Interestingly, while the total sales volume remained relatively flat, DICK’S Sporting Goods profited from the higher prices of its products.

The sporting goods and apparel retailer also raised its dividends by 10%, as announced on March 10, bringing its total annual dividend payout to $4.40 per share. This translates to a yield of 2.14%.

“We are guiding to another strong year in 2024. We plan to grow both our sales and earnings through positive comps, higher merchandise margin, and productivity gains,” said CEO Lauren Hobart in the latest earnings release.

American Express

American Express Company AXP, a global leader in financial services, raised its quarterly dividends by 17% to $0.70 per share on March 6. The company currently pays $2.80 in dividends annually, translating to a yield of 1.17%.

The company’s strong financials make it well-positioned to pay its dividends timely. In the fiscal first quarter of 2024, American Express’ revenues increased 11% year-over-year to $15.8 billion, while EPS rose by 39% from the same period last year to $3.33.

American Express expects this growth momentum to last well through 2024, as it expects its annual revenues to rise in the range of 9%-11%.

Looking For A More Enticing Yield?

For investors seeking higher yields than what these dividend stocks currently offer, the real estate sector offers some intriguing alternative options:

Arrived: This platform allows individuals to invest in shares of rental properties for as little as $100, making real estate investing accessible to a broader audience. With an average dividend yield of 4.2%, Arrived offers a more stable income stream than the double-digit yields of the aforementioned REITs. Plus, the platform handles all property management responsibilities, making it a truly passive investment. Click here to explore available properties on the platform.

Cityfunds Yield Fund: For those looking to tap into real estate debt, the Cityfunds Yield Fund targets an 8% annual yield by investing in a diversified pool of collateralized real estate loans. With a low minimum investment of $500 and a strong track record, this fund could be an attractive option for income-focused investors. Click here to learn more about the Yield fund or view other Cityfund offerings.