Dividend Macro Overview: February 25
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Dividend Macro Overview: February 25
Today's Table of Contents
Dividend Eagles: 3 Top-Performing Dividend Stocks of January
Dividend Eagles Top Stocks Updated List
The Most Notable Dividend Increases
The Most Solid Dividend Hikes
Dividend Macro Highlights: Global Dividend Trends
My Personal Stock Watchlist for February 2025
Dividend Eagles: 3 Top-Performing Dividend Stocks of January
The "Dividend Eagles List" comprises approximately 100 of the most reliable dividend-paying companies in the U.S. market, each boasting over 15 consecutive years of increasing dividends.
These companies have been meticulously selected based on stringent criteria established by the MaxDividends team.
🥉 +14.28% ROP Roper Technologies
Roper Technologies (ROP) is a software-heavy industrial company that’s been delivering for 27 straight years on dividends. Right now, you're getting a 0.57% yield, or $3.30 per share annually, with a 10.04% dividend growth rate over the last three years. More importantly, the 23.01% payout ratio shows they’re keeping most of their cash for expansion while still growing payouts.
Unlike old-school industrials, Roper has shifted heavily into high-margin software businesses, which now drive most of its revenue. That strategy is paying off—2024 revenue hit $7.04 billion, up 14% year-over-year, while net income reached $1.55 billion. The company's 2025 guidance projects EPS between $19.75 and $20.00, with revenue growth above 10%.
🥈 +16.39% NUE Nucor Corporation
Nucor (NUE) is the largest steel producer in the U.S. and a dividend powerhouse, raising payouts for 35 consecutive years. Right now, you’re getting a 1.60% yield with an annual dividend of $2.20 per share. Over the last three years, dividends have climbed 8.16%, and with a payout ratio of just 26.16%, there’s still plenty of room for future increases.
Q4 2024 revenue hit $7.08 billion, slightly above estimates, though EPS dropped to $1.22 from $3.16 a year ago, mainly due to weaker steel prices. Still, Nucor remains profitable and expects demand to pick up in 2025 as infrastructure projects ramp up. Management is also focusing on expanding its high-margin steel products, reducing dependence on commodity pricing.
🥇 +16.92% ABT Abbot Laboratories
Abbott Laboratories (ABT) has increased its dividend for 12 consecutive years, now paying a 1.80% yield, or $2.36 per share annually. Over the past three years, dividends have climbed 7.17%, and with a 30.85% payout ratio, there’s room for further hikes without straining cash flow. Abbott’s earnings come from medical devices, diagnostics, and pharmaceuticals, with diabetes care leading growth.
Q4 2024 revenue reached $10.6 billion, up 4.9% year-over-year, driven by 14% growth in medical devices. The FreeStyle Libre glucose monitor saw a 22.8% sales jump, making it a key driver of Abbott’s revenue. While COVID-19 testing sales continued to decline, that business now accounts for a smaller share of total revenue, reducing its impact.
Dividend One-Pager of the Month
The Most Notable Dividend Increases
PepsiCo (PEP) - Dividend Increase: +5.00%
50+ consecutive years. Proven dividend king.
PepsiCo (PEP) just gave you a dividend hike of the week, raising its payout by 5% to $5.69 per share annually. That bumps the yield to 3.9%, keeping its streak alive with 50+ consecutive years of increases. Over the past three years, dividends have climbed 7.86%, and even with a 77.99% payout ratio, PepsiCo is still throwing cash your way.
This kind of consistency comes from a global empire spanning snacks, beverages, and convenience foods. While North American snack sales saw a slowdown, international markets helped PepsiCo pull in $27.78 billion in Q4 2024 revenue. Adjusted EPS hit $1.96, topping estimates despite softer domestic demand.
Chevron (CVX) - Dividend Increase: +4.90%
38 consecutive years. Proven dividend aristocrat.
Chevron (CVX) is paying a 4.37% dividend yield, with an annual payout of $6.52 per share, backed by 38 consecutive years of increases. Over the last three years, dividends have grown 7.08%, while a 67.08% payout ratio keeps distributions manageable while returning substantial cash to investors.
In 2024, Chevron delivered $27 billion in shareholder returns, increased production by 7% globally and 19% in the U.S., and raised its quarterly dividend by 5% to $1.71 per share.
However, Q4 2024 saw a dip in earnings due to losses in refining, though the company remains focused on strong capital discipline and production growth.
American Express (AXP) - Dividend Increase: +17.00%
3 consecutive years and 15+ years of sustainable payouts without cut with regular increases over years.
American Express (AXP) has been on a roll lately. They’ve just announced a 17% bump in their quarterly dividend, bringing it up to $0.82 per share. That’s a solid move, especially considering their dividend yield is currently at 0.87%, translating to an annual payout of $2.80 per share.
They’ve been consistently increasing dividends for the past 3 years, with a 3-year dividend growth rate of 16.22%, while maintaining a low payout ratio of 19.99%, leaving plenty of room for further increases.
On the earnings front, Amex reported a Q4 net income of $2.17 billion, or $3.04 per share, on revenue of $17.18 billion. Looking ahead, the company is projecting revenue growth of 8%-10% for 2025, with expected earnings per share between $15 and $15.50.
With these strong financials and a proven commitment to rewarding shareholders, Amex looks like a standout choice for investors who want both stability and growth.
The Most Solid Dividend Hikes
ABM Industries Incorporated (ABM) +17.78%
Aflac Incorporated (AFL) +16.00%
Carrier Global Corporation (CARR) +18.42%
Ecolab Inc. (ECL) +14.04%
First Financial Corporation (THFF) +13.33%
Mastercard Incorporated (MA) +15.15%
Morningstar, Inc. (MORN) +12.35%
Raymond James Financial, Inc. (RJF) +11.11%
ServisFirst Bancshares, Inc. (SFBS) +11.67%
Zoetis Inc. (ZTS) +15.74%
🦅 Dividend Eagles List
An updated compilation of top-performing dividend stocks with 15+ years of consecutive dividend increases, known as Dividend Eagles, selected based on stringent criteria.
The Dividend Eagles Top Stocks List is a curated selection of over 100 of the most reliable dividend-paying companies in the U.S. market.
Each company on this list boasts a remarkable track record of increasing dividends for at least 15 consecutive years, reflecting their financial stability and commitment to returning value to shareholders.
Created by the MaxDividends Team. Available only on MaxDividends. Exclusive.
Key Benefits of the Dividend Eagles Top Stocks List
Consistent Dividend Growth
Companies featured have a proven history of not only paying dividends but also increasing them annually for over 15 years. This consistency can provide investors with a growing income stream, which is particularly valuable for those seeking passive income or planning for retirement.
Financial Stability
The stringent criteria ensure that only financially robust companies are included. These firms have demonstrated resilience across various market cycles, making them potentially safer investments during economic downturns.
Comprehensive Research
The list is meticulously compiled by the MaxDividends team, leveraging in-depth analysis and strict selection criteria. This saves investors time and effort in identifying high-quality dividend stocks, providing a reliable resource for building a dividend-focused portfolio.
Enhanced Portfolio Performance
Investing in companies with a strong dividend growth history can lead to superior long-term returns. Reinvested dividends and the power of compounding can significantly boost portfolio value over time.
Access to Exclusive Insights
Subscribers to the Dividend Eagles Top Stocks List gain access to regular updates, detailed company analyses, and insights into dividend trends, helping them make informed investment decisions.
These companies have been meticulously selected based on stringent criteria established by the MaxDividends team.
Created by the MaxDividends Team. Available only on MaxDividends. Exclusive.
By incorporating the Dividend Eagles Top Stocks List into your investment strategy, you align yourself with a disciplined approach focused on quality, stability, and growth.
Dividend Macro Highlights: Global Dividend Trends
The cumulative global dividend payout for Q3 2024 - Q4 2024 continued the upward trend of Q3 2021.
This suggests that most dividend companies have calmly endured the effects of the 2020 crisis and adapted their businesses to the new reality. As a consequence, they continued to increase their dividend payouts
Companies paid out $431.1 billion in dividends in the third quarter of 2024. For comparison, in Q3 2023 - Q4 2023, companies collectively paid out $418.2 billion (Figure 1).
Regional Dividend Leaders
In Q3, the strongest dividend growth was seen in Japan, Emerging Markets, and North America, with increases of 14.4%, 8.9%, and 8.7%, respectively.
On the downside, Asia Pacific (excluding Japan) led the decline, experiencing a 9.9% drop in dividend payouts.
U.S. Dividend Landscape (S&P 500)
The dividend yield of the S&P 500 has dropped by 50% over the past decade. It now stands at 1.21%, indicating that stock prices relative to dividends are higher than usual. As a result, dividend yields are at historically low levels.
Inflation's Impact on Dividends
The inflation growth rate remains high, outpacing dividend growth. As a result, the S&P 500 dividend trend is experiencing a correction.
However, high inflation won’t last forever. Once the correction phase ends, the trend is expected to reverse. Over the past reporting periods, inflation has been steadily declining.
S&P 500 Historical Dividend Trends
Figure 5 illustrates the historical dividends of stocks within the S&P 500 Index, adjusted for inflation.
At the current inflation rate (Figure 4), we observe a gradual acceleration in S&P 500 dividend growth. The previous peak was recorded in May 2020, when dividends reached 73.09. As of now, this figure has slightly increased to 73.40.
S&P 500 Dividend Growth
The S&P 500 dividend growth is shown in Figure 6. Over the past 32 years, the chart has been negative only three times.
All of those periods were associated with crises. Over the last month, dividend growth has outpaced inflation to 6.44%.
However, over the past 12 months, these indicators almost always show the same dynamics.
For your convenience, we have prepared a PDF version of the Dividend Macro Overview. You can download and review it at any time.
My Personal Stock Watchlist for February 2025
A complete list of my top stocks currently on my radar.
I’m fully committed to strong dividend stocks, striking the perfect balance between capital growth and a rising stream of dividend income. My ultimate goal? To build a solid and ever-growing passive income for a life funded by dividends.
I share my insights, strategy, stock picks, and investment ideas on the MaxDividends blog.
Right now, I’m tracking over 50 companies, regularly updating my shortlist and main watchlist every month.
No access yet? Check your status & upgrade to Premium to join the movement. Exclusive insights await inside!
A complete list of my favorite stocks I’m currently tracking—only the best make it in.
MaxDividends Recent Events
Stock prices can be volatile, and those ups and downs often test investors' patience. That’s why having a steady income stream through dividend payments can be so appealing.
At MaxDividends, we focus on maximizing yields to make the most of dividends, helping you grow a reliable and expanding passive income.
In the long run, investing in high-quality dividend stocks can be a stable and potentially lucrative way to build wealth and create financial security.
Last weeks, we shared several new articles and dividend stock ideas—stay tuned for insights and opportunities!
👉 Illinois Tool Works (ITW): A Stock That Can Withstand Any Market Test
👉 This Top Dividend Stock with a 4% Yield Just Raised Its Payout Again
👉 Dividend Aristocrats & Dividend Kings Lists Now On the MaxDividends App 🚀
My Comments
Historically, the stock market recognizes that companies capable of consistently distributing cash payments from their earnings are strong, well-managed businesses. These are exactly the kinds of companies we love. They make it onto our lists. They become our investments.
This week, significant market volatility is expected. The new Donald Trump administration is shifting the rules of the game, and the market will react. But there’s always something happening in the world, and in times of uncertainty, a dividend strategy truly shines.
For example, just last week, my dividend income increased again. Three companies announced dividend hikes. While the stock market fluctuates, my passive income keeps growing, creating new opportunities for smarter investments in turbulent times while securing a comfortable lifestyle and bright financial future.
I track all my results in the MaxDividends App—it provides a clear, structured view of every portfolio.
My Strategic Thoughts & Plans for 2025
In 2025, I’m fully transitioning to living off dividends. My primary capital and core portfolio—built with high-growth dividend companies and strong yielders—will power this shift.
I love this journey so much that I’ve launched The $12,000 Dividend Experiment from scratch. This experiment highlights how crucial those first steps are and how effortless it is to build and grow passive income with MaxDividends.
Starting Q2 2025, along with regular investments in the $12,000 experiment, I’ll be documenting exactly how I fund my lifestyle with dividends from my main portfolio.
💡 My strategy is based on the MaxDividends Investing Concept and Dividend Eagles, and it’s incredibly low-maintenance. Most of the time, I just sit back and watch my passive income grow.
I’ll share with you simple, proven, and effective methods for selecting built-to-last companies—led by generations of exceptional leaders—that pay consistently growing dividends. These companies provide ever-expanding passive income, allowing you to focus on what you love and spend time with the people who matter most.
✅ This is a time-tested, results-driven approach that leads to predictable success.
By focusing on strong, reliable companies that pay above-average dividends and steadily increase payouts over time, we set the foundation for consistent dividend growth and financial freedom.
👉 My Recent Friday Purchases Overview
My Plans for This Week
This week, I will continue investing in dividend stocks, building capital and passive income through dividends. No changes are planned—I’m sticking to my strategy, consistently adding new promising companies to my portfolio every week.
This week, my focus is on Nexstar Broadcasting, Polaris Industries, Texas Instruments, FedEx, and Pool Corp, Illinois Tools, Snap On.
Happy dividends for all the holders!
For your convenience, we have prepared a PDF version of the Dividend Macro Overview. You can download and review it at any time. 🙌
MaxDividends Community: What You’ll Get Here
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🔹 MaxDividends Business Overview
Deep dives into the top dividend stocks we hold, including key metrics, business insights, perspectives, and expert consensus.
🔹 MaxDividends Portfolio: Goal → $12,000 Monthly for 120 Months
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Life moments & investing insights
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Thought-provoking ideas to help you succeed
🟢 What ELSE You’ll Get
Top Dividend Ideas
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By upgrading to Premium, you’ll gain access to:
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Undervalued Dividend Lists
With Premium access, you’ll get:
Undervalued Dividend Eagles (updated monthly)
Undervalued Dividend Kings (updated monthly)
Undervalued Dividend Aristocrats (updated monthly)
These lists highlight the most promising undervalued dividend stocks with strong growth potential, helping you maximize returns on your investment.
Dividend Insights
Gain exclusive insights:
Top 5 MaxDividends Ideas of the Month
Top 3 Most Promising Dividend Ideas of the Week
List of Dangerous Dividend Stocks (updated monthly) – avoid risky picks
These carefully researched ideas will guide you in making smart, informed decisions to build wealth with dividends.
🟢 And even MORE!
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FAQ
Someone's sitting in the shade today because someone planted a tree a long time ago. ― Warren Buffett.