This Top-Notch Dividend Growth Stock Just Raised Its Payout Another 16%

Core Insights - Many dividend growth stocks provide minimal annual raises to maintain their streak of increases, but finding stocks that offer substantial increases is beneficial for dividend income and indicates company health [1] - A company that has recently raised its dividend by 16% is becoming a notable dividend growth stock, suggesting strong free cash flow and effective capital management [2] Industry Overview - The telecom industry features significant dividend payers, with AT&T and Verizon Communications being prominent examples; however, Verizon's recent dividend increase was only 1.8%, reflecting a minimal raise [4] - T-Mobile has announced its second consecutive annual dividend increase, with a 16% increase from last year's dividend, indicating a strong position for future growth [5] Company Performance - T-Mobile has experienced aggressive growth through customer-friendly pricing and services, culminating in a merger with Sprint that expanded its customer base and wireless spectrum [6] - T-Mobile's operating cash flow increased by 27% in the second quarter, reaching $7 billion, positioning it to compete closely with AT&T and Verizon in the near future [7] - The company's commitment to returning billions to shareholders over the coming years is a positive indicator of its financial health and growth potential [8]