May. 15 at 1:28 PM
4 Dividend Stocks That Just Increased Dividend Payouts:
📱 1. Apple
$AAPL
Apple recently announced a 4% dividend increase along with a massive
$100 billion share buyback.
Let’s put that in perspective:
YTD performance: Down over 15%
Dividend yield: ~0.5%
5-Year Dividend CAGR: 4.37%
Free Cash Flow Payout Ratio: Just 14%
While the yield is small, Apple’s low payout ratio gives it plenty of room to grow the dividend—if it chooses to. But here’s the truth:
🧾 Apple prefers buybacks.
Over the past decade, shares outstanding have dropped from 24.3B to 15.3B. That’s a huge reduction and a clear signal that Apple rewards investors through shareholder yield—dividends + buybacks.
➡️ Apple's estimated shareholder yield is around 4% when factoring in both.
That’s why it’s important not to judge this stock by dividend yield alone. The total capital returned to shareholders is much higher.
⚙️ 2. Parker-Hannifin
$PH
Parker-Hannifin just raised its dividend by a healthy 10.4%. A great double-digit boost.
YTD Return: +6%
5-Year Dividend CAGR: 13%
Dividend Yield: Just above 1%
Free Cash Flow Payout Ratio: ~25%
This is what a textbook dividend growth stock looks like.
Over the past decade, gross margins have expanded from 22.9% to 35.76%. That’s huge.
2014 EPS:
$6.98
2024 EPS:
$22.13
The company is growing revenue, expanding margins, and translating it into strong earnings and cash flow.
That’s the holy grail for sustainable dividend growth.
Even with consistent double-digit hikes, they’re only using a quarter of their free cash flow, leaving room to reinvest and grow.
🏊♂️ 3. Pool Corporation
$POOL
Pool Corp is under the radar, but it's a name I closely follow. They just raised their dividend by 4%.
High short interest: 8.41% (not good)
5-Year Dividend CAGR: ~17%
Dividend Yield: 1.6%
10-Year Yield on Cost: Over 7%
Free Cash Flow Payout Ratio: Very low
From 2015 to late 2021, the stock 10x’d, going from around
$60 to over
$550.
Since then, the stock has cooled off, and fundamentals have weakened a bit:
Earnings dipped in recent years
Free cash flow declined in 2024
Revenue growth stagnated
Still, analysts expect growth to resume in the next 1–2 years. And with a conservative payout ratio and a history of aggressive dividend growth, POOL remains a long-term income compounder.
This is a “watch closely” name for me. I want to see signs of earnings stabilizing before adding more.
💼 4. Paychex
$PAYX
Paychex just announced a 10% dividend increase, and this is a stock with a solid long-term record:
1-Year Return: +25%
5-Year Return: +128%
Dividend Yield: ~2.85%
5 and 10-Year Dividend CAGR: ~9%
Free Cash Payout Ratio: 75–76%
Yes, that payout ratio is higher than what I typically like to see, but it’s been consistently in that range for over a decade. But here's the thing about
$PAYX:
The predictability of their revenue streams.
Paychex’s recurring-revenue model, offering cloud-based HR, payroll, and benefits management, creates steady cash flows and high profit margins:
Gross Margin: ~72%
Return on Invested Capital: Very strong
Investors love this kind of business, and Paychex’s combination of stability, modest yield, and strong dividend growth makes it a core holding in my portfolio.
Final Thoughts 💭
Even in a choppy market, dividend growth investing remains one of the most reliable ways to build long-term wealth.
The four stocks we looked at today:
Apple – Tiny yield, huge buybacks, strong total shareholder yield
Parker-Hannifin – Margin expansion + strong earnings = sustainable dividend growth
Pool Corp – Low payout, explosive dividend growth, but watch fundamentals
Paychex – High payout, high predictability, high-quality business
