Cash Flow Alert: 3 Stocks That Just Raised Their Dividends

Core Insights - Companies that initiate and grow dividends tend to outperform other stocks, showcasing financial discipline and profitability [1] - UnitedHealth Group has raised its dividend by 12% to $2.10 per share, marking the 14th consecutive year of increases [3] - The company has achieved a 19.6% compounded annual growth rate (CAGR) in dividends over the past decade, with a slightly slower 15% CAGR over the last five years [3] - UnitedHealth's free cash flow (FCF) supports its dividend, with a low payout ratio of 20%, indicating sustainability [4] - Parker-Hannifin has a 10-year CAGR of 12% for dividend hikes and has paid dividends for 74 years, raising them for 67 consecutive years [6][14] - The Schwab U.S. Dividend Equity ETF (SCHD) has a five- and ten-year CAGR of 10.5% and recently announced a 35% dividend increase [8][16] - SCHD holds about 100 dividend-paying stocks and has a yield of 3.6% annually, with major holdings including Home Depot, Cisco Systems, and AbbVie [16][17] Company-Specific Insights - UnitedHealth Group's dividend has increased from $1.05 per share in 2013 to $8.40 per share today, making it a favorite among dividend investors [12] - Parker-Hannifin has grown its FCF at an 11% CAGR over the past decade, increasing to over 14% in the last five years, supporting its dividend sustainability [19] - SCHD's dividends are variable and can change quarterly, but they have never decreased year over year [20]