HomeMost PopularTech StocksFrustrating News: Companies Hiking Dividends Leaving Investors Behind A handful of companies...

Frustrating News: Companies Hiking Dividends Leaving Investors Behind

A handful of companies are delivering some good news to shareholders – dividend increases. The decision to raise dividends reflects a company’s confidence and future prospects and showcases their commitment to returning value to shareholders. While this is encouraging for investors, it’s infuriating to think about who has been left behind.

Three companies – Nike NKE, Automatic Data Processing ADP, and Emerson Electric EMR – have all recently declared a dividend hike. Let’s look at how these companies currently stack up for those investors itching for more.

Nike

Nike has excited investors in its latest quarterly results, with shares seeing a notable positive momentum post-release. It’s irksome that NKE exceeded the Zacks Consensus EPS Estimate by nearly 30% and recorded revenue primarily in line with expectations, with both figures improving from the year-ago period. A 9% boost to its quarterly dividend now totals $0.37 per share. The company has already had a significant commitment to increasingly rewarding shareholders, with a 10.5% five-year annualized dividend growth rate.

Automatic Data Processing

Automatic Data Processing revealed a significant 12% boost to its quarterly dividend, which now totals $1.40 per share. The company has a history of consistently boosting its payout, currently with an impressive 10.7% five-year annualized dividend growth rate. ADP has been a consistent earnings outperformer, beating the Zacks Consensus EPS Estimate in 14 consecutive quarters.

Emerson Electric

Emerson Electric has shown a shareholder-friendly nature with a 1% boost to its quarterly payout, now reaching roughly $0.52 per share. It’s a member of the elite Dividend Kings club, demonstrating an unparalleled commitment to shareholders through over 50 consecutive years of increased payouts. Annoyingly, shares aren’t overly expensive given the company’s projected growth, with consensus expectations for its current year calling for 16% earnings growth on 14% higher sales.

Targeting dividend-paying stocks is an excellent strategy that investors can deploy. Dividends soften the blow from drawdowns in other positions, provide more than one way to reap a return from an investment, and allow maximum returns through dividend reinvestment. And all three companies – Nike NKE, Automatic Data Processing ADP, and Emerson Electric EMR – have recently boosted their payouts. While this may be a win for some, it’s maddening to think others might have missed out.

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