Dividends continue to be a source of strength for investors amid ongoing market volatility. While share prices fluctuate, quarterly dividend payments remain a return on invested capital that shareholders can count on.
Fortunately, upcoming good news is that dividend payouts are rising across American markets. In this year’s third quarter, dividend payments rose. The average dividend yield among companies listed on the benchmark S&P 500 index held at 1.63% on Sept. 30. Additionally, some well-known companies, such as T-Mobile (NASDAQ:TMUS), have announced plans to pay their first ever dividend payment.
Now is the perfect time to be a dividend collector. Let’s examine three stocks that are raising their dividends in 2024.
Ryanair (RYAAY)
Irish carrier Ryanair (NADAQ:RYAAY) isn’t simply raising its dividend. It’s issuing a first ever dividend to shareholders following record results that saw its profit increase 59%.
Specifically, Ryanair will spend 400 million Euros ($428 million USD) on dividend payments in 2024, allocating the payments to shareholders in February and next September. The dividend payment for the entire year works out to 1.57 Euros ($1.68 USD) per share based on the company’s current number of outstanding shares.
Going forward, Ryanair said it plans to return approximately 25% of its after-tax profit to shareholders in the form of dividend payments. The announcement of an inaugural dividend comes after Ryanair posted a record profit of 2.18 billion Euros ($2.34 billion USD) for the six months ended Sept. 30. The company attributed the profit boost to airfares that rose 24% over the summer. RYAAY stock has risen 45% so far this year.
Visa (V)
Credit card concern Visa (NYSE:V) is raising its dividend payment by 16% following strong financial results. Going forward, Visa will pay its shareholders a quarterly dividend of 52 cents a share, giving it a yield of 0.9%. The dividend increase comes as Visa reported fiscal Q4 results. They were driven higher due to a continued rebound in spending on international travel.
The credit card company announced earnings per share (EPS) of $2.33, which was better than the $2.25 consensus estimate among analysts, and up 21% from a year ago. Revenue came in at $8.6 billion, up 11% from a year ago and matched Wall Street estimates. Also, Visa reported free cash flow of $6.6 billion, well above the $4.7 billion that was expected by analysts.
In addition to the dividend increase, Visa is buying back its own stock. As part of its recent finances, Visa announced a new $25 billion share buyback program. V stock has gained 17% this year.
McDonald’s (MCD)
The Golden Arches continues to reward its stockholders. McDonald’s (NYSE:MCD) announced an increase of its quarterly dividend payment by 10% as of December 15 this year and continuing into 2024. Going forward, holders of MCD stock will receive a dividend payment of $1.67 per share, up 9.9% from $1.52 previously. The higher payment gives McDonald’s stock a dividend yield of 2.50% based on the current share price.
Truly, McDonald’s has an enviable track record of lifting its dividend payout. In the last decade, the quick service restaurant chain has more than doubled its annual dividend payment to $6.68 a share from $3.08.
In fact, McDonald’s has consistently paid a quarterly dividend to shareholders since 1976 and has increased it every year. Today, MCD wears the moniker “dividend aristocrat,” which is applied to a going concern that has raised its dividend payout for more than 25 consecutive years.
Currently, MCD stock is flat on the year (up 0.98%). Buy into weakness here.
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.