Nearly one-third of the Club’s 35-stock portfolio has hiked its dividend so far this year, underlining confidence in the businesses and bolstering the total return prospects for shareholders like us. Johnson & Johnson (JNJ) and Costco Wholesale (COST) became the latest Club holdings to hike their payouts this week, bringing the year-to-date total to 11. On average, those 11 companies have increased their dividends by a healthy 10.4% this year on prior quarterly payouts. The biggest increase of 2023 came from oilfield services firm Halliburton (HAL), which in January raised its dividend by a third, to 16 cents per share. Cisco Systems (CSCO), meanwhile, raised its dividend by a more modest 2.6%, to 39 cents a share, from 38 cents. Here is the full list of the Club stocks that have raised their dividends this year. What it means The decision to raise a dividend is not one that companies take lightly. When a firm decides to increase its dividend, investors usually see it as a sign the company is confident it will be able to generate the cash flows required to support a higher payout. In the case of these 11 Club holdings, the dividend increases are favorable developments, even if the magnitude varies from company to company. But regardless of the size, we recommend investors reinvest their dividends , helping to grow total returns over time. Of course, not every stock on this list is necessarily known and owned for its dividend. For example, Humana (HUM) has a dividend yield of just roughly 0.7%. But, even if not core to our investment thesis, an annual boost to a dividend — along with a steady increase in stock price — is more than acceptable. Additionally, for a company like Humana, its dividend works in concert with a share buyback program, so capital is returned to shareholders in two ways. It is no surprise Johnson & Johnson, Procter & Gamble (PG) and Linde (LIN) have raised their dividend already this year. All three companies are what’s known on Wall…
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