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Dividend Watch: 2 Red-Hot Stocks Boosting Payouts
AAPLApple(AAPL) ZACKS·2025-05-21 16:15

Core Viewpoint - Dividends are attractive for investors as they provide passive income and reflect a company's commitment to rewarding shareholders through consistent payout increases [1][13] Company Summaries Apple (AAPL) - Apple reported record Services revenue and record EPS of 1.65foritsMarchquarter,withtotalsalesgrowing51.65 for its March quarter, with total sales growing 5% year-over-year [3] - The company announced a 4% increase in its quarterly dividend payout and a 100 billion share repurchase program, demonstrating strong cash generation capabilities [4] - Apple generated $20.8 billion in free cash flow during the latest period, benefiting from the recent de-escalation of trade tensions in China, which positively impacted its stock price, increasing nearly 20% since the announcement [6][7] Vistra (VST) - Vistra operates a diverse power generation fleet and has seen its shares rise nearly 70% over the past year, driven by demand from AI infrastructure development [8] - The company announced a 3% increase in its quarterly dividend, maintaining a 13% five-year annualized dividend growth rate and a sustainable payout ratio of 12% of earnings [10] - Vistra reaffirmed its current year guidance, providing reassurance to investors amid a challenging earnings cycle [12]