In this article, we will take a look at some of the best stocks that raised their dividends.
Dividend stocks have been attracting investor interest for quite some time, consistently delivering strong performances that highlight their long-term appeal. This growing investor preference has led many major technology companies to introduce dividend payments. As a result, dividends are no longer limited to traditional value stocks, with growth-oriented firms also emerging as significant dividend payers.
Historical trends show that dividend-paying stocks have consistently outperformed other asset classes across various market cycles. A report from T. Rowe Price highlights that dividends have made up nearly one-third of total equity returns for US stocks since 1926. During the period from 1980 to 2019, which saw a decline in interest rates, dividends contributed to 75% of the broader market’s overall returns.
READ ALSO: 12 Best Consumer Cyclical Dividend Stocks To Buy Right Now
By the end of September 2024, approximately 80% of companies in the broader market were distributing dividends—a proportion that has remained relatively steady over the past decade. Notably, the technology sector represented nearly 24% of dividend-paying companies, a significant rise from 13% ten years ago. Other industries, such as healthcare and industrials, also experienced an uptick in firms offering dividends. This broader availability of dividend-paying stocks has provided income-focused investors with more opportunities to gain exposure to high-growth and innovative businesses. Given these developments, analysts maintain a positive outlook for dividend stocks as they head into 2025.
Dividend growth is closely tied to a strong earnings season. In February, the broader market struggled, declining by over 2% as concerns about inflation, upcoming tariffs under former President Donald Trump, and escalating geopolitical tensions weighed on investor sentiment. On February 28, the major index briefly dipped into negative territory for 2025. However, corporate earnings reports for the fourth quarter have provided a fresh catalyst for the market.
As of February 28, nearly 97% of companies in the broader market had reported earnings, with over 75% surpassing analyst expectations, according to FactSet. Many of these companies delivered encouraging news for income-focused investors. In the week ending February 25, data from JPMorgan showed that 20 companies announced dividend increases, with no reports of dividend cuts or suspensions during that period. This is positive for income investors, as dividend growth is always a welcomed development for them.
Howard Silverblatt, Senior Index Analyst at S&P Dow Jones Indices, made the following comment about the situation:
“Many companies have the ability and cash-flow to increase their dividend payments, but remain concerned over the economy, government spending and taxing policy. Given the continued economic growth with lower interest rates and the relatively low unemployment rate, a clearer picture of potential policy should emerge in the first quarter, at which time more companies can better evaluate their future commitment.”
Companies continued to raise their dividends throughout the fourth quarter of 2024. A report from S&P Dow Jones Indices noted that 635 dividend hikes were recorded during the quarter, totaling $14.2 billion. Over the 12-month period, total dividend increases reached $71.4 billion, marking an increase from $65.1 billion in the previous year. Given this, we will take a look at some companies that have just raised their dividends.
Photo by Vitaly Taranov on Unsplash
Our Methodology
For this list, we first scanned the list of companies that raised their dividend payouts in 2025 so far. Then, we picked prominent companies with strong dividend histories and solid cash positions. From that group, we picked 10 companies with the highest number of hedge fund investors, according to Insider Monkey’s database of Q4 2024. The stocks are ranked in ascending order of their hedge fund holders.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. Kimberly-Clark Corporation (NYSE:KMB)
Number of Hedge Fund Holders: 50
Kimberly-Clark Corporation (NYSE:KMB) is an American multinational consumer goods and personal care company that offers related products and services to its consumers. In the fourth quarter of 2024, the company reported revenue of $4.9 billion, exceeding analyst expectations of $4.85 billion by 1.5%. However, its adjusted earnings per share (EPS) stood at $1.50, slightly below the projected $1.51. Despite headwinds from foreign currency fluctuations and strategic divestitures, the company maintained strong revenue performance, supported by a 2.3% increase in organic sales. Efforts to refine pricing strategies and improve its product mix also contributed positively.
Kimberly-Clark Corporation (NYSE:KMB) benefits from strong brand recognition, with well-established products such as Huggies, Pull-Ups, and Kleenex reinforcing its global presence in both retail and professional markets. The company is currently focused on strengthening its core business segments, driving product innovation, and responding swiftly to shifting consumer preferences. The stock has surged by over 13% in the past 12 months.
Kimberly-Clark Corporation (NYSE:KMB)’s financial position remained solid in fiscal year 2024, generating $3.2 billion in operating cash flow. In addition, it returned $2.6 billion to shareholders through dividends and share repurchases. On January 28, Kimberly-Clark announced a 3.3% increase in its quarterly dividend to $1.26 per share, marking its 52nd consecutive year of dividend growth. This makes KMB one of the best stocks that have raised their dividends. As of March 6, the stock has a dividend yield of 3.57%.
9. Analog Devices, Inc. (NASDAQ:ADI)
Number of Hedge Fund Holders: 64
Analog Devices, Inc. (NASDAQ:ADI) is an American semiconductor manufacturing company that mainly deals in integrated circuits and systems. The company focuses on researching, developing, and producing high-performance analog, mixed-signal, and digital signal processing integrated circuits (ICs). Its technologies play a crucial role in enabling electronic systems to capture and process real-world data effectively.
Lately, Analog Devices, Inc. (NASDAQ:ADI) has emphasized launching new products and forming strategic partnerships, driving innovations such as the CodeFusion Studio and ADI Assure Trusted Edge Security Architecture. In the fourth quarter of 2024, the company reported revenue of $2.42 billion, which declined by 3.56% from the same period last year. However, the revenue beat analysts’ estimates by $63.55 million. The company saw sequential growth in its Industrial, Automotive, and Communications segments, while its Consumer division recorded double-digit growth compared to the previous year.
Analog Devices, Inc. (NASDAQ:ADI)’s cash position remained strong, which makes it a reliable option for income investors. In the most recent quarter, the company generated $1.12 billion in operating cash flow, which represented 47% of total revenues. Its free cash flow, accounting for 40% of the revenue, came in at $978 million. On February 19, the company declared an 8% hike in its quarterly dividend to $0.99 per share. This marked the company’s 21st consecutive year of dividend growth. The stock has a dividend yield of 1.75%, as of March 6.
8. General Motors Company (NYSE:GM)
Number of Hedge Fund Holders: 68
General Motors Company (NYSE:GM) ranks eighth on our list of stocks that raised their dividends. The American multinational automotive manufacturing company sells trucks, cars, and auto parts and provides software-enabled services and subscriptions. On February 26, the company announced a 25% increase in its quarterly dividend to $0.15 per share. It has been making regular dividend payments to shareholders since 2014 due to its strong cash position. In FY24, the company’s operating cash flow and free cash flow sat at $24 billion and $24 billion, respectively. As of March 6, the stock supports a dividend yield of 1.01%.
In the fourth quarter of 2024, General Motors Company (NYSE:GM) reported $47.7 billion in revenue, reflecting an 11% increase from the same period the previous year. However, the company’s net income declined by more than $5 billion, largely due to special charges. These included $4 billion in non-cash restructuring costs and write-downs related to its interests in certain China joint ventures. In addition, GM recorded $0.5 billion in expenses after deciding to discontinue funding for its Cruise robotaxi business.
Rather than continuing to develop robotaxis—a venture that would require significant time and resources to scale in an increasingly competitive market—General Motors Company (NYSE:GM) has redirected its focus toward driver-assist technologies that offer more immediate revenue potential. This shift has allowed the company to assess consumer demand for such features, with encouraging results. According to CEO Mary Barra, around 20% of the nearly 18,000 Super Cruise users chose to continue their subscription after their three-year trial period ended in 2024.
7. PepsiCo, Inc. (NASDAQ:PEP)
Number of Hedge Fund Holders: 69
PepsiCo, Inc. (NASDAQ:PEP) is an American food and beverage company that offers a wide range of related products to its consumers. The company has long been seen as the challenger to Coca-Cola in the soda market. However, its extensive portfolio of beverages, snacks, and convenience foods allows it to achieve steady growth without relying on soda market dominance.
PepsiCo, Inc. (NASDAQ:PEP) maintained steady earnings in fiscal year 2024, reporting $91.8 billion in revenue, slightly up from $91.4 billion the previous year. Operating profit rose to $12.8 billion from $11.9 billion in FY23, while net income also increased to $9.6 billion. Looking ahead to 2025, the company anticipates low-single-digit organic revenue growth and mid-single-digit growth in core constant currency EPS.
In FY24, PepsiCo, Inc. (NASDAQ:PEP) generated $12.5 billion in operating cash flow. For FY25, it plans to return about $7.6 billion to shareholders through dividends. On February 3, the company announced a 5% increase in its annual dividend to $5.69 per share, marking its 53rd consecutive year of dividend growth. The stock has a dividend yield of 3.53%, as of March 6. It is among stocks that have raised their dividends.
6. Comcast Corporation (NASDAQ:CMCSA)
Number of Hedge Fund Holders: 80
Comcast Corporation (NASDAQ:CMCSA) is an American telecommunications company that offers a wide range of mobile phone and cable TV services. The company has solidified its position as a leading provider of connectivity services, offering broadband and wireless solutions while maintaining a significant presence in the media landscape through NBC, Telemundo, and the Peacock streaming platform. By focusing on network improvements and expanding its content offerings, the company aims to remain competitive in the rapidly evolving media industry.
In the fourth quarter of 2024, Comcast Corporation (NASDAQ:CMCSA) reported revenue of nearly $32 billion, marking a 2.1% year-over-year increase. This growth was driven by strong performance across its six core business segments. Despite facing intense competition, connectivity revenue rose by 5%, while mobile services saw an expansion with 1.2 million new lines added. In addition, Business Services posted a 5% revenue increase.
On January 30, Comcast Corporation (NASDAQ:CMCSA) declared a 6.5% increase in its annual dividend to $1.32 per share. Through this increase, the company will now pay a quarterly dividend of $0.33 per share. This marked the company’s 17th consecutive year of dividend growth. It managed to grow its dividend consistently because of its strong cash position. In the most recent quarter, the company generated an operating cash flow of over $8 billion, an increase from $6 billion in the same period the previous year. Free cash flow also saw a significant rise, reaching $3.26 billion compared to $1.7 billion a year earlier. Moreover, it distributed $1.2 billion to shareholders through dividend payments. CMCSA is among the stocks that raised their dividends. As of March 6, the stock has a dividend yield of 3.70%.
5. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 81
An American energy company, Chevron Corporation (NYSE:CVX) ranks fifth on our list of stocks that raised their dividends. By prioritizing LNG initiatives, the company enhances its capacity to secure long-term contracts, reinforcing a stable revenue stream. In addition, its new energies segment is contributing to revenue growth, generating over $600 million from bio-based diesel sales. The stock has surged by over 3% since the start of 2025.
In the fourth quarter of 2024, Chevron Corporation (NYSE:CVX) reported earnings of $2.06 per share, falling short of analyst expectations due to weaker margins, which resulted in its refining segment posting a loss for the first time since 2020. However, quarterly revenue climbed to $52.23 billion, reflecting a 10.7% increase from the previous year and exceeding Wall Street estimates by more than $3.8 billion. This growth was fueled by a 7% rise in global production and a 19% surge in US output, both reaching record levels for the year. Additionally, the company generated nearly $8 billion from asset sales and maintained a strong financial position, ending the year with a net debt ratio of 10%.
Chevron Corporation (NYSE:CVX) demonstrated financial strength in FY24, generating $31.5 billion in operating cash flow and $15 billion in free cash flow. It returned nearly $12 billion to shareholders through dividends and repurchased over $15 billion in shares, reaffirming its long-standing commitment to share buybacks—a strategy it has employed in 17 of the past 21 years.
On January 31, Chevron Corporation (NYSE:CVX) increased its quarterly dividend by 4.9% to $1.71 per share. Through this increase, the company stretched its dividend growth streak to 38 years. The stock has a dividend yield of 4.52%, as of March 6.
4. The Coca-Cola Company (NYSE:KO)
Number of Hedge Fund Holders: 81
An American multinational beverage company and Warren Buffett’s favorite, The Coca-Cola Company (NYSE:KO) has grabbed investors’ attention because of its strong cash generation and solid dividend history. The company maintains a strong global footprint, with its well-known products available in 200 countries. Its flagship brand is among the most recognizable worldwide, attracting a loyal customer base willing to pay a premium. Since the beginning of 2025, the stock has climbed nearly 17%, outperforming the broader market.
In the fourth quarter of 2024, The Coca-Cola Company (NYSE:KO) reported $11.5 billion in revenue, marking a 6.5% increase from the previous year. Organic revenue grew by 14%, driven by a 9% rise in price/mix and a 5% increase in concentrate sales. Throughout the year, Coca-Cola continued expanding its market share across its beverage portfolio, with Coca-Cola Zero Sugar experiencing significant growth as unit volume rose 13% during the quarter. The company’s innovative marketing efforts have been instrumental in its success, contributing to roughly $40 billion in retail sales growth for its flagship brand over the past three years.
On February 20, The Coca-Cola Company (NYSE:KO) declared a 5.2% hike in its quarterly dividend to $0.51 per share. This was the company’s 63rd consecutive year of dividend growth. The company sustained its dividend growth by maintaining a solid cash flow position in the latest quarter, generating $2.9 billion from operations and $1.6 billion in free cash flow. Additionally, it reported a robust adjusted operating margin of 30.7%, highlighting its strong profitability. The stock supports a dividend yield of 2.93%, as of March 6.
3. NextEra Energy, Inc. (NYSE:NEE)
Number of Hedge Fund Holders: 84
NextEra Energy, Inc. (NYSE:NEE) is an American renewable energy company, headquartered in Florida. The company generates, transmits, and sells electricity. It announced a 14% hike in its quarterly dividend on February 14 and now offers a quarterly dividend of $0.5665 per share. Through this increase, the company took its dividend growth streak to 29 years, which makes it one of the stocks that raised their dividends. Its solid cash flow enables these distributions, with the company generating more than $13.2 billion in operating cash flow during fiscal 2024. Looking ahead, it aims to increase its dividend per share by approximately 10% annually through at least 2026, using its 2024 payout as the baseline. The stock has a dividend yield of 3.26%, as of March 6.
NextEra Energy, Inc. (NYSE:NEE) has generated strong returns, surging by nearly 27% in the past 12 months, as of the close of March 5. The company primarily functions as a regulated utility, providing a steady and predictable revenue stream. Its Florida-based utility business operates as a monopoly within its service areas, though any proposed capital investments or rate adjustments require regulatory approval.
Beyond its utility operations, NextEra Energy, Inc. (NYSE:NEE) generates reliable cash flow through its clean energy segment, which operates under long-term contracts. With demand for renewable energy on the rise, the company is aggressively expanding this division. Management aims to grow its renewable energy capacity from the current 36 gigawatts to 46.5 gigawatts by 2027, a move that could nearly double the business in the coming years.
2. The Home Depot, Inc. (NYSE:HD)
Number of Hedge Fund Holders: 88
The Home Depot, Inc. (NYSE:HD) is a multinational home improvement company that sells related tools and products to its consumers. With a presence in more than 2,300 locations across North America, the company’s performance remains closely tied to real estate market trends. While it has sustained steady growth and strong profitability, higher mortgage rates have posed challenges. Rising borrowing costs have led to a slowdown in home sales and a tighter housing supply, which has, in turn, affected consumer spending on home improvement projects.
The Home Depot, Inc. (NYSE:HD) delivered strong fourth-quarter earnings for 2024, with revenue reaching $39.7 billion—marking a year-over-year increase of more than 14%. For fiscal 2025, the company anticipates total sales growth of approximately 2.8%, with comparable sales expected to rise by around 1% over the same 52-week period. In addition, it plans to open about 13 new stores and projects a gross margin of roughly 33.4%.
The Home Depot, Inc. (NYSE:HD) closed the quarter with over $1.65 billion in cash and cash equivalents. Throughout fiscal 2024, it generated nearly $20 billion in operating cash flow, reinforcing its strong financial position. This stability has allowed Home Depot to sustain uninterrupted dividend payments for 152 consecutive quarters. On February 25, the company hiked its dividend by 2.2% to $2.30 per share. This was the company’s 15th consecutive year of dividend growth. With a dividend yield of 2.38% as of March 6, HD is among the stocks that raised their dividends.
1. Walmart Inc. (NYSE:WMT)
Number of Hedge Fund Holders: 116
Walmart Inc. (NYSE:WMT) is a retail corporation that operates a chain of hypermarkets, discount stores, and grocery stores across the US. On February 20, the company declared a 13% increase in its quarterly dividend to $0.235 per share. This was the company’s 52nd consecutive year in which it has raised its payouts. It maintained a strong cash position in FY25, generating $36.4 billion in operating cash flow—an increase of $0.7 billion from the previous year. Free cash flow for the year reached $12.7 billion.
In the fourth quarter of fiscal 2025, Walmart Inc. (NYSE:WMT) reported a 4.1% rise in revenue, reaching $180.6 billion, with constant currency growth of 5.3%. Operating income grew by 8.3%, driven by higher gross margins, increased membership revenue, and improved eCommerce profitability. Over the full fiscal year, the company generated $36.4 billion in operating cash flow and ended the year with $9 billion in cash and cash equivalents. Additionally, Walmart repurchased $4.5 billion in shares and announced a 13% increase in its quarterly dividend to $0.235 per share—the largest hike in over a decade.
Walmart Inc. (NYSE:WMT)’s advertising business experienced significant growth, rising 27% in fiscal 2025 to approximately $4.4 billion. Walmart Connect, a key part of this segment, also expanded considerably, posting a 24% increase. The stock has outperformed the market in the past 12 months, surging by over 57% during this period.
Overall, Walmart Inc. (NYSE:WMT) ranks first on our list of stocks that raised their dividends. While we acknowledge the potential for WMT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than WMT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stock To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.