3 Industry Behemoths Are Rewarding Investors With Dividend Bumps

Core Insights - Major companies are increasing dividends to provide stability and reliable returns to investors amid market volatility [1] Johnson & Johnson - Announced a 4.8% increase in its quarterly dividend, resulting in an annual dividend of $5.20 and a dividend yield of 3.35% [2][4] - Has a strong track record with 64 years of consecutive dividend increases and a 3-year annualized dividend growth rate of 5.43% [2][4] - Faces challenges from tariffs estimated to cost $400 million this year, primarily affecting its medical technology business [4] - Engaged in share buybacks, spending nearly $3.1 billion over the last 12 months, representing about 0.8% of its market capitalization [5] Costco Wholesale - Increased its quarterly dividend from $1.16 to $1.30 per share, marking a notable 12% increase [7] - The indicated annual dividend is $5.20, but the dividend yield is low at 0.53%, significantly below the average yield of 3.3% for the largest consumer staples stocks [8] - Focuses on share buybacks as its primary method of returning capital, having spent nearly $3.8 billion on buybacks in the last 12 months, resulting in a buyback yield of nearly 6.5% [8][9] NASDAQ - Announced a 13% increase in its quarterly dividend, bringing the new dividend to $0.27, with an indicated yield of approximately 1.42% [10][11][12] - The company has spent $260 million on share buybacks since the beginning of 2024, which is about 0.6% of its market capitalization, with additional buyback capacity of $1.6 billion [13] - Achieved a debt paydown yield of nearly 2% over the last 12 months, indicating effective debt management [13]