Latest news with #dividendgrowth
Yahoo
6 days ago
- Business
- Yahoo
Flowers Foods' (NYSE:FLO) Dividend Will Be Increased To $0.2475
Flowers Foods, Inc. (NYSE:FLO) has announced that it will be increasing its periodic dividend on the 19th of June to $0.2475, which will be 3.1% higher than last year's comparable payment amount of $0.24. This will take the dividend yield to an attractive 5.8%, providing a nice boost to shareholder returns. Our free stock report includes 1 warning sign investors should be aware of before investing in Flowers Foods. Read for free now. We like to see robust dividend yields, but that doesn't matter if the payment isn't sustainable. Before this announcement, Flowers Foods was paying out 89% of earnings, but a comparatively small 64% of free cash flows. In general, cash flows are more important than earnings, so we are comfortable that the dividend will be sustainable going forward, especially with so much cash left over for reinvestment. Earnings per share is forecast to rise by 2.3% over the next year. Assuming the dividend continues along recent trends, our estimates say the payout ratio could reach 93% - on the higher side, but we wouldn't necessarily say this is unsustainable. View our latest analysis for Flowers Foods The company has a sustained record of paying dividends with very little fluctuation. Since 2015, the dividend has gone from $0.48 total annually to $0.96. This implies that the company grew its distributions at a yearly rate of about 7.2% over that duration. The growth of the dividend has been pretty reliable, so we think this can offer investors some nice additional income in their portfolio. The company's investors will be pleased to have been receiving dividend income for some time. We are encouraged to see that Flowers Foods has grown earnings per share at 20% per year over the past five years. Past earnings growth has been decent, but unless this is one of those rare businesses that can grow without additional capital investment or marketing spend, we'd generally expect the higher payout ratio to limit its future growth prospects. Overall, this is a reasonable dividend, and it being raised is an added bonus. The payments look pretty sustainable with good earnings coverage and a reasonable track record. The payment isn't stellar, but it could make a decent addition to a dividend portfolio. Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. As an example, we've identified 1 warning sign for Flowers Foods that you should be aware of before investing. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
23-05-2025
- Business
- Yahoo
Air Products and Chemicals, Inc. (APD) Declares Quarterly Dividend
On May 22, Air Products and Chemicals, Inc. (NYSE:APD) declared a quarterly dividend of $1.79 per share, which was in line with its previous dividend. Air Products and Chemicals, Inc. (NYSE:APD) is an American multinational company that is known for its industrial gases, performance materials, and associated equipment and services. The company has maintained a steady track record of dividend payments since 1954. Notably, it has raised its dividend every year for the past 43 years. This consistent dividend growth is largely supported by the company's strong cash flow. In the first half of 2025, Air Products and Chemicals, Inc. (NYSE:APD) reported $1.1 billion in operating cash flow, reflecting its solid financial position and ability to deliver reliable shareholder returns. As of May 22, Air Products and Chemicals, Inc. (NYSE:APD) has a dividend yield of 2.66%, and the stock will trade ex-dividend on July 1. APD has surged by nearly 2% in the past month. While we acknowledge the potential of APD as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than APD but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the . READ MORE: and Disclosure. None.
Globe and Mail
18-05-2025
- Business
- Globe and Mail
7 No-Brainer Dividend Growth Stocks to Buy Right Now
While many investors chase fleeting market trends, dividend growth investing offers something far more valuable. Namely, compounding wealth through businesses that pay you to own them. Moreover, elite dividend growth stocks, defined as those with five-year dividend growth rates above 6% and payout ratios under 75%, have a stellar record of delivering superior returns to the benchmark S&P 500. This outperformance reveals a deeper truth about exceptional businesses. Companies that consistently grow dividends faster than 6% annually while maintaining conservative payout ratios possess two critical advantages: accelerating earnings power and disciplined capital allocation. Equally as important, these traits typically signal businesses protected by wide economic moats, pricing power, network effects, and/or regulatory barriers that competitors can't easily overcome. These seven blue chip dividend stocks tick all these boxes. Each combines elite dividend growth with fortress-like balance sheets and market-leading positions that should compound wealth for decades. For investors seeking to build generational wealth or generate reliable passive income, these companies offer a rare blend of growth, income, and downside protection in an increasingly volatile market. Read on to find out more. Financial powerhouse with exceptional shareholder rewards American Express (NYSE: AXP) operates a closed-loop payment network and premium financial services platform, serving affluent consumers and businesses. The credit card giant offers a modest 1.09% dividend yield, backed by a conservative 20.4% payout ratio, leaving ample room for future increases. Its 10.8% annualized dividend growth rate over the past 10 years demonstrates management's rock-solid commitment to returning capital to shareholders. At 19.8 times forward earnings versus 20.7 times for the S&P 500 (defined as the "broader market" hereafter), American Express stock trades at a slight discount to the benchmark index. This financial services titan thus qualifies as a value stock despite offering double-digit dividend growth and exposure to the rapidly expanding digital payments ecosystem. The toll booth of global commerce Visa (NYSE: V) operates the world's largest payment processing network, connecting consumers, merchants, and financial institutions across more than 200 countries. The payment giant offers a modest 0.65% dividend yield supported by a conservative 22.3% payout ratio that ensures long-term sustainability. Its remarkable 17.4% annual dividend growth rate over the past 10 years reflects management's commitment to increasing shareholder returns. At 31.5 times forward earnings, Visa stock trades at a significant premium to the broader market. This payments infrastructure leader commands its premium valuation through consistent growth, massive scale advantages, and exceptional profitability within the expanding digital payments ecosystem. Membership-driven retail excellence Costco (NASDAQ: COST) operates a membership warehouse business model that generates consistent revenue and maintains industry-leading customer retention exceeding 90%. The retail giant delivers a modest 0.51% dividend yield, underpinned by a conservative 27% payout ratio that provides stability. Its strong 10.1% annual dividend growth rate over the past 10 years demonstrates management's steady commitment to increasing shareholder returns. The one clear drawback is that at 48.7 times forward earnings, Costco stock commands a substantial premium to the benchmark index. This retail powerhouse earns its premium valuation through exceptional operational execution, pricing advantages, and consistent market share gains across economic cycles. Retail resilience with attractive income Target (NYSE: TGT) maintains a differentiated retail position through exclusive brand partnerships, omnichannel capabilities, and strategic store placements nationwide. The retail leader provides a substantial 4.5% dividend yield backed by a 50.1% payout ratio that balances reinvestment and shareholder returns. Its 8% annual dividend growth rate over the past 10 years showcases management's consistent approach to rewarding loyal shareholders. At 10.5 times forward earnings, Target stock trades at a significant discount to the broader market. This retail standout represents compelling value with its combination of current income, consistent dividend growth, and well-executed merchandising strategy in the fiercely competitive retail landscape. Data monopoly with pricing power S&P Global (NYSE: SPGI) delivers critical financial intelligence through credit ratings, data services, and analytics that power global markets and investment decisions. The information services provider offers a modest 0.73% dividend yield supported by a conservative 29% payout ratio that enables future growth. Its notable 11.9% annual dividend growth rate over the past 10 years highlights management's commitment to increasing cash returns. At 30.8 times forward earnings, S&P Global stock trades at a premium to the benchmark index. This financial data leader deserves its premium valuation through market-leading positions in credit ratings, essential market intelligence, and recurring revenue streams that power sustainable growth. Semiconductor leadership fueling AI revolution Nvidia (NASDAQ: NVDA) designs advanced graphics and computing solutions that power artificial intelligence (AI), data centers, and next-generation applications worldwide. The technology leader provides a minimal 0.03% dividend yield maintained by an ultra-low 1.16% payout ratio that prioritizes reinvestment for growth. Its extraordinary 16.7% annual dividend growth rate over the past 10 years demonstrates management's balanced approach despite emphasizing capital appreciation. At 31.4 times forward earnings, Nvidia stock commands a significant premium to the benchmark S&P 500. This semiconductor powerhouse merits its premium through dominant positions in AI computing, data center acceleration, and cutting-edge graphics technology driving the next computing revolution. Semiconductor equipment monopoly ASML (NASDAQ: ASML) manufactures the advanced lithography systems required for producing the world's most sophisticated semiconductor chips used in computing, mobile, and AI applications. The equipment maker delivers a respectable 1.12% dividend yield supported by a conservative 28.5% payout ratio that ensures future flexibility. Its exceptional 24.7% annual dividend growth rate over the past 10 years -- tops among these seven stocks -- reflects management's aggressive approach to increasing shareholder returns. At 28 times forward earnings, ASML stock trades at a premium valuation to the broader market. This semiconductor equipment leader earns its premium valuation through what amounts to a technological monopoly in its field, a critical position in the global chip supply chain, and continued innovation driving the advancement of computing worldwide. Should you invest $1,000 in American Express right now? Before you buy stock in American Express, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and American Express wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $642,582!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $829,879!* Now, it's worth noting Stock Advisor 's total average return is975% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 12, 2025
Yahoo
17-05-2025
- Business
- Yahoo
Here's a portfolio of 3 FTSE 100 shares for passive income AND growth!
Looking for FTSE 100 shares to deliver dependable earnings and dividend growth? Here are three to consider today. Safety equipment supplier Halma (LSE:HLMA) is expected to report a 23rd straight year of record profits when trading numbers for financial 2025 come out on 12 June. What makes it so resilient, you ask? One reason is it's great track record of acquisitions (decades of M&A mean it comprises 50 different businesses). Another is the fact that safety is one area which businesses can ill afford to skimp on, regardless of broader trading conditions. Halma's impressive growth story means it also has one of the longest records of unbroken dividend growth on the FTSE 100. Payouts here have risen by at least 5% every year since the late 1970s. And it's tipped to raise them 7% in the current financial year (ending March 2026). Indicidentally, earnings are expected to rise another 8% during the current fiscal period. It's a forecast that means the predicted dividend is also covered an impressive four times over by anticipated earnings. To put that into context, any reading above two times is said to provide a wide margin of safety. Be mindful, though, that M&A-based growth strategies leave companies exposed to severe execution risk. To non-fantasy gamers, the resilience of Games Workshop's (LSE:GAW) sales over time may be hard to understand. After all, spending on expensive plastic miniatures and games-related paraphernalia should, in theory, be among the first luxuries to go. Yet the Footsie firm's products are playfully known as 'plastic crack' for a reason. Tabletop gamers are passionate about the hobby, and will find ways to stretch their budgets to build their collections even during economic downturns. Games Workshop is especially resilient, as its Warhammer products command an especially loyal (and growing) global community of enthusiasts. Profits have kept rising despite the ongoing cost-of-living crisis. And City analysts expect another 16% bottom-line rise this financial year (to May 2026). Dividends have risen at an annualised growth rate of 24% since fiscal 2020. And they're expected to increase 18% year on year in the current financial period. Predicted dividends are covered just 1.1 times by anticipated earnings, however. This could cause problems if profits disappoint (for example, due to cost pressures). Like Halma, Coca-Cola HBC (LSE:CCH) has a long record of consistent annual dividend growth. Cash rewards have grown every year since it listed on the London Stock Exchange in the early 2010s, including an 11% year-on-year hike in 2024. The company's focus on the highly stable fast-moving consumer goods (FMCG) sector provides steady earnings over time, and thus the means for it to pay a decent and rising dividend. But this is only half the story. As the bottler of the world's most popular soft drink — along with a raft of other highly popular brands like Sprite, Monster Energy, and Schweppes — it benefits from pricing power than helps it grow profits (and subsequently dividends) across the economic cycle. City brokers are expecting a 14% rise in annual earnings in 2024, and a 12% increase in the total dividend. Encouragingly, this year's payout is also covered 2.2 times. Despite fierce market competition from other FMCG makers and local producers, I think it's a top FTSE 100 dividend stock to consider. The post Here's a portfolio of 3 FTSE 100 shares for passive income AND growth! appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Royston Wild has positions in Coca-Cola Hbc Ag and Games Workshop Group Plc. The Motley Fool UK has recommended Games Workshop Group Plc and Halma Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025
Globe and Mail
16-05-2025
- Business
- Globe and Mail
Dividend Aristocrats Offer Safety in Market Storms. Buy These 2 Top-Rated Stocks Now.
Dividend Aristocrats, firms with over 25 years of annual dividend growth, show their resilience through recessions, periods of sticky inflation, and market downturns, rewarding investors with reliable income and long-term stability. These stocks are battle-tested shelters, and two compelling options right now could be Coca-Cola (KO) a beverage titan, and West Pharmaceutical Services (WST), a key player in drug delivery systems. Both stocks have decades of dividend growth behind them and solid momentum ahead. To that end, investors should consider grabbing these top-rated defensive gems now. Dividend Aristocrat Stock #1: Coca-Cola Valued at a market cap of $296 billion, the beverage stock is up 9.6% over the past 52 weeks and 11.1% in 2025 alone. Even when the markets wobble, Wall Street keeps betting on its timeless charm – Coke just keeps bubbling to the top. Coca-Cola is not just refreshing thirst, it is refreshing portfolios. KO, a proud Dividend King, has raised its dividend for 63 straight years, proving loyalty to its investors. In 2024 alone, it poured out $8.4 billion in dividends, pushing total payouts since 2010 to an astounding $93.1 billion. Coca-Cola's annualized dividend of $2.04 per share, translating to a forward yield of 2.89%, easily tops the SPDR S&P 500 ETF's (SPY) 1.21%. Coca-Cola unveiled its Q1 earnings results on April 29, proving once again that its 'all-weather strategy' is more than just a catchphrase. Revenue dipped 2% year over year to $11.1 billion, mostly due to currency headwinds and changes in how it reports its bottling biz, but its bottom line still sparkled. EPS rose 5% to $0.77, and comparable EPS edged up 1% to $0.73, beating expectations. Coca-Cola's superpower is still its global reach. Looking ahead, Coca-Cola isn't backing down. The company reaffirmed its full-year 2025 outlook, targeting organic revenue growth of 5% to 6%, despite a 2% to 3% currency drag. Comparable currency-neutral EPS for 2025 is expected to increase 7% to 9% year over year. This outlook shows Coca-Cola's steady hand in stormy markets. Plus, management envisions an adjusted free cash flow of $9.5 billion for fiscal 2025, including $11.7 billion in cash flow from operations. Analysts are buying the story, forecasting $2.96 EPS in fiscal 2025, up 2.8% year over year, with the next year's bottom line anticipated to grow by another 8.1% annually to $3.20 per share. Overall, KO has a solid 'Strong Buy' consensus rating. Out of the 23 analysts in coverage, 21 recommend a 'Strong Buy,' one advises a 'Moderate Buy,' while the remaining one is playing it safe with a 'Hold' rating. KO stock might be gearing up for a refresh. With analysts setting a mean price target of $79.48, the stock could rally as much as 14% from the current price levels. Dividend Aristocrat Stock #2: West Pharmaceutical West Pharmaceutical Services (WST) has quietly become a cornerstone of the global pharmaceutical supply chain. The Pennsylvania-based company engineers sophisticated containment and delivery systems for injectable drugs and healthcare products, serving clients across the Americas, EMEA, and Asia Pacific. The stock has fallen 42% from its 52-week high of $358.52. Over the past year, it has slipped 42%, with a 37% decline on a YTD basis. Despite recent stock struggles, West Pharmaceutical has stayed loyal to its long-term investors. The company has increased dividends for over three decades, and just last month, it declared a payout of $0.21 per share, payable to the shareholders on Aug. 6. Plus, it kept its annual payout at $0.84 with a modest 0.41% yield. While the yield may not grab headlines, the low 12.2% payout ratio underscores West's conservative approach to capital allocation. In Q1 alone, West Pharmaceutical returned $15.2 million in dividends and repurchased over half a million shares for $133.5 million. On April 24, West Pharmaceutical Services delivered a steady yet strategically strong Q1 performance, reporting $698 million in revenue, flat year over year, but still topping expectations by 1.5%. Adjusted EPS landed at $1.45, blowing past estimates by 18.9%, signaling that the company's operational discipline is paying off despite top-line stagnation. Historically, West Pharmaceutical has ranked among the more profitable healthcare players, averaging an operating margin of 22.7% over the past five years. In Q1, adjusted operating profit hit $125 million, with margins climbing to 17.9%, reflecting improved efficiency even in a more complex macro environment. Cash flow also impressed. Operating cash flow rose 9.5% year over year to $129.4 million, while FCF more than doubled to $58.1 million. The company continues to lean into areas of strength, with a clear focus on capital discipline, margin improvement, and stakeholder value. West Pharmaceutical raised its full-year 2025 guidance, estimating net sales to be between $2.945 billion and $2.975 billion, while adjusted EPS is projected between $6.15 and $6.35. Analysts predict the medical device company's EPS to be $6.27 in fiscal 2025, rising by 14.4% annually to $7.17 in fiscal 2026. WST stock has a consensus 'Strong Buy' rating overall. Out of the 12 analysts covering the stock, 11 suggest a 'Strong Buy,' and one recommends a 'Hold.' The mean price target of $293.50 suggests that the stock has upside potential of 42% from current prices.
