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Dividends are getting boosted across different sectors and industries in the market. This is important to see. Dividend increases across sectors allow for growing income opportunities while also allowing a way for yield-seeking investors to achieve diversification.
Below are the details on four names across energy, consumer discretionary, industrials and financials that are increasing payouts. All data uses information as of the June 6 close unless otherwise indicated.
1. EOG: +3% Energy Yielder With Huge Special Dividend Upside
First up is a big player in the energy sector, EOG Resources (NYSE:EOG). EOG is an upstream oil, natural gas and natural gas liquids company. Along with announcing that it will acquire Encino Acquisition Partners, the company also boosted its dividend on May 30. Its quarterly dividend will increase to $1.02, a lift of 5%. The next dividend will be payable on Oct. 31 to stockholders of record as of Oct. 17. This indicates an annual dividend of $4.08.
Overall, the firm now has a very strong regular dividend yield of just under 3.6%. This doesn’t include the effect of potential special dividends, which the firm has been known to utilize. From 2021 to 2023, EOG announced eight special dividends. These special dividends totaled $11.30 per share, a very large figure compared to the stock’s price of around $114.
This doesn’t mean that special dividends will come anytime soon, as the company hasn’t announced one since November 2023. Still, the fact that EOG has used special dividends significantly in the past creates strong income upside potential.
2. LOW: Dividend Up 4%, Payout Has Risen Briskly Since Fiscal 2021
Next up is home-improvement store operator Lowe’s Companies (NYSE:LOW), which is in the consumer discretionary sector. Lowe’s recently announced a 4% increase to its quarterly dividend to $1.20 per share. This dividend will be payable on Aug. 6 to shareholders of record as of July 23. The company’s dividend has now increased for more than 25 years in a row. This gives the firm a solid dividend yield of 2.1%.
This is a particularly strong yield compared to Lowe’s sector. Notably, the Consumer Discretionary Select Sector SPDR Fund has a dividend yield of just 0.7%. However, Lowe’s still has a bit of catching up to do to reach the dividend yield of its much larger competitor, Home Depot (NYSE:HD). Home Depot’s dividend yield stands at around 2.5%. Still, Lowe’s has done well in increasing its dividend yield over the past several years. Compared to fiscal 2021, the company’s indicated annual dividend per share has now more than doubled.
3. DCI: Raises Dividend Double-Digits, Yield Exceeds S&P Industrials
Donaldson Company Inc (NYSE:DCI) is an approximately $8.2 billion industrials company that is also giving its dividend a shot in the arm. The company makes and sells liquid and air filtration systems across a variety of industries. It has achieved a solid, but still underperforming, return of around 39% over the past three years.
The company recently increased its dividend by more than 11% to $0.30 per share. The dividend is payable on June 30 to shareholders of record on June 16. This marks the 29 years in a row that the company has increased its dividend. Donaldson now has a moderate dividend yield of 1.7%. Still, this is higher than the 1.3% yield of the Industrial Select Sector SPDR Fund.
It is also greater than the 1.2% yield of the S&P 500 Index.
4. CB: Solid Dividend Increase Plus Multi-Billion Dollar Buyback Authorization
Last up is Chubb (NYSE:CB), a financial services stock in the insurance industry. Over the last three years, Chubb has had a solid total return of over 47%. Chubb recently approved a dividend increase of 6.6%, boosting its streak of annual dividend increases to 32 years. The next $0.97 quarterly dividend will be payable on July 3 to shareholders of record at the close of business on June 13. Chubb has an above-market dividend yield of 1.3%. The company also announced a $5 billion buyback program, equal to around 4.3% of its market cap.
These four names are reiterating their commitments to return capital to shareholders by lifting their dividends. EOG and Lowe’s stand out for their special dividend upside and strong dividend growth, respectively.