In this article, we will take a look at the 13 Companies that Just Started Paying Dividends.
The latest figures from S&P Dow Jones Indices show dividend growth didn’t stall in 2025, but it clearly slowed. Net dividends increased $46.4 billion for the year, which was a step down from the $53.3 billion increase in 2024. Looking back adds some perspective. Net dividends rose $36.5 billion in 2023, then climbed sharply to $68.2 billion in 2022 and $69.8 billion in 2021. The reminder of 2020 still lingers, as that year, net dividends fell $40.8 billion after 43 S&P 500 companies suspended payments during a period of deep uncertainty.
Over the 12 months ending December 2025, dividend increases totaled $59.3 billion- noticeably lower than the $71.4 billion recorded in the prior period. At the same time, dividend cuts became less common. Decreases fell to $12.9 billion, down from $18.1 billion in 2024.
The fourth quarter followed the same pattern. Companies announced 634 dividend increases in Q4 2025, essentially unchanged from the 635 reported a year earlier. Total dividend hikes reached $16.1 billion, up from $14.2 billion in Q4 2024. For the full year, 2,293 companies raised their dividends. That was fewer than the 2,450 increases seen in 2024, a sign that boards were choosing caution over aggressive payout growth.
Dividend growth remained muted but steady as the year wrapped up. Howard Silverblatt said companies were still careful about committing future cash. Uncertainty tied to tariff policy continued to weigh on decisions, shaping expectations around consumer spending, business investment, input costs, and the broader economy.
Many companies did raise dividends, but the increases were often modest. This was especially clear among firms that typically raise payouts once a year. Companies without a set schedule were more inclined to wait and see. Looking ahead, Silverblatt said clearer signals around tariffs and policy late in the quarter could push more companies to act. Still, stronger and longer-lasting dividend commitments would likely require firmer direction from policymakers.
He expects the first quarter of 2026 to be an active stretch for dividend increases, supported by record earnings and sales, and expectations for more records in 2026. Even so, he warned investors not to expect big jumps. Uncertainty remains part of the landscape, and policy direction can shift quickly. Dividend growth across the S&P 500 is still expected to land in the mid-single-digit range in 2026.
Given this, we will take a look at companies that just started paying dividends.
Photo by nathan dumlao on Unsplash
Our Methodology:
For this article, we manually searched for companies that announced new dividend programs in December 2024, with their initial dividend payments made in 2025. We considered hedge fund sentiment for those companies, as per Insider Monkey’s database of Q3 2025. The stocks were ranked according to hedge funds having stakes in them.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
13. Zedge, Inc. (NYSEAMERICAN:ZDGE)
Number of Hedge Fund Holders: 7
Dividend Initiation Announcement: October 14, 2025
On October 14, Zedge, Inc. (NYSEAMERICAN:ZDGE) said its Board of Directors approved the launch of a quarterly cash dividend, adding a new layer to the company’s capital return plans. The decision is aimed at increasing shareholder value over time.
Starting a regular dividend reflects management’s confidence in the company’s long-term growth, steady free cash flow generation, and balance sheet strength. Over the past year, Zedge has already returned capital through share repurchases, buying back roughly $4 million of Class B shares as part of its $5 million authorization. The dividend represents the next step in that effort. The company offers a quarterly dividend of $0.016 per share and a dividend yield of 2.01%, as of January 29.
Management made it clear that shareholder returns are not coming at the cost of growth. The company continues to invest in product development and innovation. Recent launches, including Tapedeck and SynCat, point to that focus.
Zedge has also formed a Product Innovation Team centered on AI, vibe coding, and automation. The goal is to move faster when bringing new products to market. According to management, the company’s financial flexibility allows it to reward shareholders today while still funding initiatives that support future growth.
Zedge, Inc. (NYSEAMERICAN:ZDGE) operates digital marketplaces and interactive games. Its broader ecosystem includes offerings such as the Zedge Marketplace.
12. California BanCorp (NASDAQ:BCAL)
Number of Hedge Fund Holders: 8
Dividend Initiation Announcement: December 8, 2025
California BanCorp (NASDAQ:BCAL) reported its fourth-quarter 2025 results on January 28. The company earned $16.4 million during the quarter, equal to $0.50 per diluted share. It also continued returning capital, repurchasing 122,428 shares at an average price of $16.37. The total cost came to $2.0 million under its existing buyback program.
The board declared a quarterly dividend of $0.10 per common share, representing $3.3 million in total distributions. Tangible book value per share, a non-GAAP measure, stood at $13.79 at December 31, 2025. That marked an increase of $0.40 from the prior quarter.
Management described 2025 as a turning point for the company. A major factor was the successful integration of its 2024 merger, which expanded the bank’s presence across several key California markets. The bank reduced exposure to higher-risk loans, improved overall credit quality, and lowered its reliance on higher-cost brokered deposits. At the same time, it grew core deposits, helping to bring funding costs down.
California BanCorp added experienced bankers to its Northern California team and continues to prioritize organic loan and deposit growth. Management said it remains confident in the company’s long-term outlook.
California BanCorp (NASDAQ:BCAL) is the holding company for California Bank of Commerce, N.A. The bank serves individuals, professionals, and small to mid-sized businesses. It operates roughly 14 branch offices and four loan production offices across Northern and Southern California.
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