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 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Burger Kings: The 10 Most Expensive Burgers in the World

The 10 Most Ethnically Diverse Countries in the World

The 10 Most Exclusive Credit Cards in the World

The 10 Most Expensive Cruise Ships in the World

The 10 Fastest Supercomputers in the World

The 10 Best Countries for Doing Business 2015

6 Most Expensive Fruits In The World

10 Worst Airlines in the World

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!