FedEx and 5 Other Stocks on Track to Raise Dividends by More Than 6%

Introduction

In an economy filled with uncertainty and government policies that often seem to prioritize spending over growth, one glint of optimism shines through: the expected increase in dividends among large-cap stocks in the S&P 500. According to S&P Dow Jones Indices, these companies are projected to achieve an average dividend increase of 6% year-over-year this year, a notable improvement over the 5.1% boost last year, though it still pales in comparison to the nearly 11% surge witnessed in 2022. With looming presidential elections and economic concerns, retaining dividends is crucial for these firms.

Top Dividend Growers

Let’s take a closer look at six companies that are expected to exceed the average increase and deliver dividends higher than 6%: FedEx, Goldman Sachs Group, Amgen, State Street, SLB (formerly Schlumberger), and Zoetis.

Goldman Sachs Group

Goldman Sachs stands at the forefront, yielding 2.3%. Notably, this Wall Street titan has been consistently raising its dividend, projecting to pay $11.56 a share this year—an impressive 10% increase from $10.50 in 2023. CEO David Solomon reassured stakeholders at a recent financial conference of the company’s commitment to growing its dividends. In a turbulent financial landscape, Goldman remains a beacon of strength and reliability.

Amgen

Next in line is Amgen, a biotechnology company with a solid 2.8% yield. Analysts expect Amgen to boost its dividend to $9.19 a share this year, an 8% rise from the previous year. Our pharmaceutical investments must prioritize companies that not only deliver groundbreaking products but also offer steady returns. Amgen represents both.

State Street

With a promising yield of 3.3%, State Street is another company worth considering. Offering financial services and products to institutional clients, State Street has an expected dividend payout of $2.90 a share, up 10% from last year. With a payout ratio closely aligned with its peers, State Street is positioned for sustainable growth and dividend increases moving forward.

FedEx

While the FedEx stock has seen only a 7% increase year-to-date, trailing the S&P 500’s robust 24%, it still boasts a respectable dividend yield of 2.1%. FedEx anticipates disbursing $5.51 per share in dividends this fiscal year, which is a 9% increase from the previous year’s $5.04. The company’s efforts to improve profitability and manage costs are vital for its long-term dividend sustainability.

SLB

The oil-services company SLB, with a yield of 2.5%, has bounced back admirably after the pandemic challenges. SLB expects to pay $1.09 per share in dividends, marking an increase from 93 cents in 2023. While the stock is down approximately 12% this year, investors should remember that this company is steadily restoring its dividends and positions itself as a meaningful player in the energy market.

Zoetis

Finally, while Zoetis offers a lower yield of 0.9%, this animal-health company is projected to deliver consistent and robust dividend growth. Analysts forecast a dividend payment of $1.71 a share this year, a commendable 14% increase from $1.50 in 2023. Although the stock has dipped about 2% year-to-date, the consistent growth of Zoetis’ dividends makes it an attractive consideration for investors even with those lower yields.

Conclusion

As companies cautiously navigate an uncertain economic landscape marked by potential shifts in government spending and policies, dividends remain a central focus for investors. With the upcoming presidential elections casting shadows over fiscal stability, firms like FedEx, Goldman Sachs, Amgen, State Street, SLB, and Zoetis are well-positioned to provide reliable returns by increasing their dividends above 6%. Wise investors should seize these opportunities to add value to their portfolios while supporting companies that prioritize shareholder returns amid fleeting political winds.

Final Thoughts

Understanding the dividend outlook across major sectors will be crucial in making informed investment decisions. As the landscape evolves, remember to keep a conservative eye on companies showcasing resilience and growth potential in their dividend strategies. These dividend-raising stocks not only signify solid management but also embody the traditional values of financial stability and shareholder returns. There’s never been a better moment to invest in success.