Shares have been on a rocky trip to start out the yr, however revenue traders have a silver lining: Corporations have continued to announce dividend will increase. The S & P 500 limped by means of February, shedding 1.4%, with considerations over inflation, President Donald Trump’s impending tariffs and worsening geopolitical dangers weighing on investor sentiment. On Friday, the broad-based index briefly slipped into adverse territory for 2025. Nonetheless, corporations have been reporting their fourth-quarter studies – offering one other market catalyst. As of Friday, about 97% of the S & P 500 reported earnings, with greater than 75% surpassing analysts’ estimates, per FactSet. A number of of these S & P 500 names have been bearing excellent news for revenue traders. Within the week ended Feb. 25, there have been 20 S & P 500 corporations that introduced dividend hikes, in accordance with knowledge from JPMorgan. There have been no new cuts or suspensions introduced in that point, the agency mentioned. Heavy hitters saying dividend hikes embrace Coca-Cola , which boosted its payout by about 5.2% to 51 cents per share. “Associated to capital return, we now have an unwavering precedence to develop our dividend, as we have executed for 62 consecutive years,” mentioned John Murphy, chief monetary officer of Coca-Cola, on the corporate’s Feb. 11 earnings name. “Our dividend is supported by our long-term free money movement era. In 2024, dividends paid as a % of adjusted free money movement was 73%,” he added. Different large names which have joined the ranks as of late embrace Occidental Petroleum , Residence Depot and Basic Motors . Dividend raises in 2025 12 months so far by means of Feb. 18, greater than 80 S & P 500 corporations introduced dividend will increase, in accordance with knowledge from S & P Dow Jones Indices. See under for a number of of the names that raised their revenue funds. Semiconductor producer Analog Units lifted its quarterly dividend fee by 8% to 99 cents a share . The inventory is holding up in what’s been a tough patch for tech names, up greater than 6% in 2025. The tech sector of the S & P 500 is off 6% yr so far. This hike marks the twenty first consecutive yr of upper dividends for Analog Units. The inventory has a present dividend yield of 1.7%. Benchmark Fairness Analysis initiated protection of the inventory earlier this month with a purchase ranking and a value goal of $245, reflecting greater than 9% upside from Thursday’s shut. “We imagine ADI is likely one of the most engaging alternatives throughout the high-performance analog semiconductor panorama, uniquely positioned to drive sustained progress, margin enlargement and compelling shareholder returns,” wrote analyst David Williams. “Important money producing mannequin and beneficiant capital allocation technique targets return of 100% of [free cash flow] to shareholders,” he added. Of the 32 analysts overlaying Analog Units, 20 price it a purchase or sturdy purchase, and consensus value targets name for upside of 13%, in accordance with LSEG. Walmart , a dividend aristocrat – that’s, a reputation that raised dividends for at the least 25 years, introduced a 52nd yr of dividend hikes. The large-box retailer lifted its dividend by 13% to 94 cents a share – or 4 quarterly funds of $0.235 per share. The corporate posted beats on the highest and backside strains within the fiscal fourth quarter, however it warned that revenue progress will gradual . This cued a 6.5% slide for Walmart shares after the retailer issued its outcomes. “Money movement remained sturdy. And as we introduced this morning, we’re happy to boost the dividend by 13% this yr, the most important improve in over a decade, reinforcing our dedication to sturdy money returns to shareholders,” mentioned CFO John David Rainey on Walmart’s earnings name. The Avenue was additionally unfazed by the post-earnings slip in shares, with JPMorgan analyst Christopher Horvers calling it a “Close to-Time period Shopping for Alternative.” He charges it obese, saying its U.S. same-store gross sales progress is “top quality” as Walmart continues to achieve market share. Analysts are sticking by the inventory, with 41 out of 43 ranking it a purchase or sturdy purchase, per LSEG. Consensus value targets see 12% upside from present ranges. Walmart shares are up greater than 8% in 2025, and the inventory has a present dividend yield of 1%. Searching for the suitable names Traders who’re prepared to do the due diligence for particular person dividend-paying shares will need to control corporations’ stability sheet and free money movement. They may also need to monitor the consistency of an organization’s earnings and get into the main points of its dividend payout ratio. Certainly, a excessive dividend payout ratio means that an organization is paying out extra of its earnings towards shareholders, somewhat than reinvesting within the enterprise. Excessive dividend yields are additionally value watching, as they could counsel that an organization’s share value is on a downward trajectory. For traders who’d somewhat take a diversified strategy towards including dividend payers, the S & P 500 Dividend Aristocrats ETF (NOBL) could possibly be an excellent place to start out. Family names together with Emerson Electrical , Clorox and Walmart are amongst its holdings.
