Tech giants Microsoft and Verizon raise dividends, generating strong total returns and steady growth potential.

From Nasdaq: 2024-09-21 06:42:00

Microsoft recently raised its dividend by 11%, costing around $25 billion annually, keeping the tech giant at the top of global-dividend payers. Verizon and Realty Income also gave investors modest raises. Dividend growers historically deliver higher total returns with less risk. Companies like Microsoft and Verizon are poised for continued growth and increased payouts.

Hartford Funds and Ned Davis Research found that dividend growers outperform non-payers and cutters. Microsoft has raised its dividend annually for 20 years, generating strong total returns. Verizon, with a 6% dividend yield, can easily cover its payout. Realty Income consistently raises dividends, offering a 5% yield with steady growth expectations. These dividend-growth stocks have potential for double-digit returns in the future.

Having increased their dividends, Microsoft, Verizon, and Realty Income are solid investment options. Microsoft, in particular, generates large cash flow and has a strong growth outlook. While Microsoft was not among The Motley Fool’s top 10 stock picks, historically, their recommendations have delivered significant returns. Companies with consistent dividend growth like these are well-positioned for long-term success.



Read more at Nasdaq: These Dividend Stocks Just Gave Their Investors a Raise. Here’s Why That’s a Big Deal.