Microsoft Corporation (MSFT), International Business Machines Corp. (IBM) & Four Dow (.DJI) Stocks With the Fastest-Growing Dividends

Page 1 of 2

The Dow Jones Industrial Average (INDEXDJX:.DJI) have gained the respect of investors around the world not just because of their status as high-quality blue-chip companies that offer stability and security. They also represent a solid dividend-producing portfolio, with the Dow Jones Industrial Average (INDEXDJX:.DJI) as a whole offering a dividend yield of 2.4% and with many of its components yielding far more than that.

But as smart dividend investors know, yield is only part of the story when it comes to picking the best dividend stocks. It’s also important to find companies that will be able to grow their dividends well into the future, to ensure that the money you receive will rise to meet the increased demands of inflation and other financial needs. So with that in mind, I looked at the components of the Dow Jones Industrial Average (INDEXDJX:.DJI) that have succeeded in raising their dividends the most over the past five years. Here are the four top companies.

Microsoft Corporation (MSFT)

4. Microsoft Corporation (NASDAQ:MSFT), 2.6% dividend yield, 15.7% average annual dividend growth rate since 2008 Microsoft Corporation (NASDAQ:MSFT)’s dividend has more than doubled since early 2008 as investors have slowly realized that the company doesn’t have the growth prospects it once had. Because of the huge amounts of cash flow that Microsoft generates from sales of its legacy operating-system and office-productivity software, it has increasingly been able to afford more lucrative payouts to its shareholders. Moreover, given the mixed success the company has had using capital in other ways, such as through acquisitions, investors seem just as happy to keep more cash in hand.

3. International Business Machines Corp. (NYSE:IBM), 1.8% yield, 16.3% growth rate Unlike many tech stocks, International Business Machines Corp. (NYSE:IBM) has paid a dividend for decades, but until recently, the company tended to make small payments and even smaller increases on an annual basis. Yet in the mid-2000s, the company dramatically accelerated its dividend growth, and since the beginning of 2008, the dividend has risen on six different occasions to jump by 138%. Even with the latest rise, however, the company yields less than 2%, and traditionally, International Business Machines Corp. (NYSE:IBM) has preferred using spare cash for buybacks that will lead to a direct upward push to earnings per share.

2. The Walt Disney Company (NYSE:DIS), 1.1% yield, 16.5% growth rate Like IBM, The Walt Disney Company (NYSE:DIS) has long had a reputation for stingy dividend payments. But in the past three years, the company has boosted its dividend by 150%, sticking with an old-style single annual payout rather than dividing its dividend into quarterly payments. The massive growth in the company’s stock price, though, has kept the yield down to just over 1%.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 44 percentage points in 21 months Learn how!

Lists

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

Top 6 Things You Can Do To Increase Your Productivity

Top 9 Trending Smartphones in 2013

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!