Dividend Delights: 3 Stocks That Will Brighten Your Investment Horizon

Stocks to buy

Dividends are a main reason investors buy stocks. Equally important, dividends are often the reason investors hold onto a stock. Companies have accepted these facts. So, many publicly traded companies use their dividend payments to keep shareholders content. And it makes them eager to maintain a position in their stock.

Certain companies make raising their dividend payout to shareholders a priority. Yet, others even issue special one-time dividends when times are particularly good and they are sitting on piles of excess cash. Blue-chip companies, which are often mature and slow growing, tend to make raising their dividend and rewarding shareholders a focus.

Let’s examine three high dividend-yielding companies that are primed to delight their shareholders.

Coca-Cola (KO)

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Simply stated, Coca-Cola (NYSE:KO) is one of the best dividend stocks around.

Earlier this year, the soft drink maker raised its quarterly dividend payment to shareholders by 5.4%. Coca-Cola now pays its stockholders a quarterly dividend of 48.5 cents per share, up from 46 cents previously. The dividend yield on KO stock is now 3.03% based on the current share price. Furthermore, Coca-Cola has increased its dividend payment for 62 consecutive years.

Also, the consistent annual increases place Coke in a select group of companies known as “dividend kings,” which are publicly traded companies that have grown their dividend payments for 50 consecutive years or longer. Interestingly, Coca-Cola’s arch rival PepsiCo (NASDAQ:PEP) recently joined the dividend king club, having raised its dividend for 51 consecutive years. PepsiCo’s dividend yield currently stands at 3.12%. KO stock has risen 7% so far this year.

JPMorgan Chase (JPM)

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World’s largest bank JPMorgan Chase (NYSE:JPM) continues to reward its shareholders. In March of this year, the lender raised its quarterly dividend payment for the second time in six months as it reported record profits. JPMorgan Chase hiked its dividend by 9.50% to $1.15 a share. Previously, the bank paid a dividend of $1.05 per share. JPM stock now has a dividend yield of 2.31%.

Also, the latest dividend increase was announced after JPMorgan reported a record profit of $49.50 billion for all of 2023. It was the second time in less than a year that the company raised its dividend payout to stockholders. The company previously adjusted its dividend in October 2023, taking it to $1.05 a share from $1. News of the record profit and dividend increase come as JPM stock has risen 43% in the last 12 months.

McDonald’s (MCD)

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Last autumn, McDonald’s (NYSE:MCD) lifted its quarterly dividend payment by 10%.

Starting in December, the quick service restaurant chain began paying its stockholders a quarterly dividend of $1.67 per share, up from $1.52 previously. The higher payment gives McDonald’s a dividend yield of 2.54% based on the share price. Over the past decade, the Golden Arches has more than doubled its annual dividend payment, taking it to $6.68 a share per year from $3.08.

McDonald’s paid its first dividend to shareholders in 1976 and has increased it every year since. Notably, the company is known as a “dividend aristocrat,” which is a publicly traded concern that has raised its dividend payout for 25 consecutive years or longer. Therefore, McDonald’s is on the cusp of becoming a dividend king if it continues raising its dividend for three more years. MCD stock has declined 12% year-to-date (YTD).

On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.

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