When it comes to dividend stocks, the landscape can be as unpredictable as a rollercoaster. While some companies dish out steady dividends year after year—a trait cherished by income investors—others offer higher yields with bigger risks. For those willing to take a gamble, there’s an allure in discovering companies that are just starting their dividend journey—a chance to get in on the ground floor of a potential future dividend powerhouse.
Uncover below three companies that have recently started rewarding shareholders with dividends and hold promising potential for those eyeing long-term investments.
Methodology Unveiled
The hunt for these intriguing dividend newcomers began with a meticulous screening process. Companies that initiated or reinitiated dividend payments within the last year were brought under the lens. From there, a stringent selection criterion was applied, focusing on firms with positive year-over-year net income growth and a conservative dividend payout ratio not exceeding 30%. The outcome: a trio of companies organized by ascending yield.
T-Mobile US (TMUS): A Telecom Titan in the Making
At the forefront is T-Mobile US, a household name in the American telecommunications sector. Known for its wireless services, data connectivity, and device offerings, the company unveiled a new dividend policy in late 2023, cementing its commitment to shareholders. With a current yield of 1.61% and plans for annual dividend increments of 10%, T-Mobile is setting its sights high. Notably, boasting a substantial market cap and impressive financial performance in FY’23, T-Mobile’s dividend growth trajectory appears promising.
OppFi: Paving the Way for Financial Inclusion
OppFi, an American fintech company, aims to democratize access to credit for the average American. Through AI-driven algorithms, OppFi simplifies the lending process for individuals often branded as high risk by traditional banks. With a recent special dividend declaration and a share repurchase program, OppFi’s commitment to shareholder value enhancement is evident. The company is well poised to sustain its dividend payments given its robust cash flow position.
Jiayin Group (JFIN): Navigating the Fintech Niche
Jiayin Group, a Chinese fintech player connecting financial institutions and individuals, has entered the dividend arena. With two dividend payments under its belt and a promising semi-annual distribution schedule, Jiayin is dedicated to rewarding its investors. Bolstered by a low payout ratio and strong financial performance in 2023, Jiayin stands out as a contender for long-term income investors.
For those strategizing their dividend portfolios, these three companies offer a fresh perspective on potential income sources. As the dividend landscape continues to evolve, keeping an eye on emerging dividend stars may present lucrative opportunities for forward-thinking investors.
On the date of publication, Rick Orford did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data is solely for informational purposes.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
