3 High-Yielding Dividend Stocks That Raised Their Payouts This Year
Want a quality dividend stock to add to your portfolio? Don't settle for risky high-yielding stocks that have double-digit payouts. Instead, consider investments that balance good yields, manageable payout ratios, strong financials, and impressive track records of dividend growth. It may not be easy to check off all those boxes, but three stocks that do are Starbucks (NASDAQ: SBUX), McDonald's (NYSE: MCD), and Fortis (NYSE: FTS). These stocks make for solid dividend stocks to own, and they all recently raised their payouts.
Coffee giant Starbucks provides investors with a dividend yield of 2.4%, which is higher than the S 500 average of 1.6%. Last month the company also announced it was increasing its dividend for the 13th straight year. The four-cent increase is a relatively modest 7.5% bump up for Starbucks, as historically it has averaged a compounded annual growth rate of 20%.
Dividend increases are discretionary, so the rate of increase can fluctuate depending on the company's financials. Currently, Starbucks has a payout ratio of 63%, which is sustainable and suggests that there's still room for more rate hikes in the future, provided that Starbucks' financials don't worsen.
Source Fool.com
Starbucks Corp. Stock
Starbucks Corp. is currently one of the favorites of our community with 17 Buy predictions and no Sell predictions.
As a result the target price of 103 € shows a positive potential of 36.62% compared to the current price of 75.39 € for Starbucks Corp..
