Here are 15 high-yielding stocks that are expected to grow dividends the most through 2024

The stock market, shocked by policy changes by the US Federal Reserve to combat inflation, has been punctured this year, with growth and technology companies bearing the brunt of the biggest declines. Dividend stocks, on the other hand, are actually up.

Below is a breakdown of the components of the S&P 500 High Yield Index that are expected to grow their quarterly dividend payouts the most over the next two years. Current dividend yields aren’t necessarily very high. However, a rapid increase in payouts can bode well for overall performance, as the increases indicate healthy cash flow trends.

First, check out this comparison of total returns (with dividends reinvested) for the SPDR Portfolio S&P 500 High Dividend ETF SPYD,
+0.73%
and the SPDR S&P 500 ETF SPY,
+2.00%
:

fact set

That performance for the high-dividend group — a total return of 3.5% this year through May 24 — was nothing short of stunning, considering the S&P 500 is down 17.1%.

Constituents of the High Yield Index

Starting with the full S&P 500 SPX,
+1.99%,
S&P Dow Jones Indices narrows the list to 80 stocks with the highest reported dividend yields for the next 12 months. The High Yield Index is rebalanced semi-annually.

click here for the S&P Dow Jones Indices’ description of the S&P 500 High Yield Index, then click on the datasheet and methodology for more information.

Screening for Dividend Stocks

The constituents of the S&P 500 High Yield Index have dividend yields of 1.98% (Baker Hughes Co. BKR,
+3.88%
) to 8.42% (Lumen Technologies Inc. LUMN,
+2.90%.
(Lumen was known as CenturyLink until it was rebranded in September 2020. The company slashed its dividend payout by more than 50% in February 2019, showing investors need to do further research, especially when a stock has a very high yield) .

By comparison, the S&P 500 has a weighted dividend yield of 1.63%, according to FactSet.

Highest expected dividend increases

Here are the 15 companies in the S&P 500 High Yield Index that are expected to grow their annual dividend payouts the most through 2024, based on consensus estimates from analysts polled by FactSet:

company

ticker

Current Dividend Yield

Current annual dividend rate

Estimated Dividend – 2023

Estimated Dividend – 2024

Two-year estimated dividend increase

EOG Resources Inc.

EEG,
+0.49%

2.32%

$3.00

$3.09

$5.72

47.6%

PPL Corp.

PPL,
+1.00%

2.68%

$0.80

$1.03

$1.10

27.0%

M&T Bank Corp.

MTB,
+2.36%

2.84%

$4.80

$5.34

$6.27

23.5%

Regions Financial Corp.

RF,
+2.08%

3.33%

$0.68

$0.79

$0.87

22.3%

Omnicom Group Inc.

OMC,
+1.33%

4.03%

$2.80

$3.18

$3.51

20.3%

Baker Hughes Company Class A

BKR,
+3.88%

1.98%

$0.72

$0.78

$0.89

18.9%

amgen inc

AMGN,
+0.02%

3.08%

$7.76

$8.32

$9.52

18.5%

Principal Financial Group Inc.

PFG,
+1.44%

3.64%

$2.56

$2.82

$3.10

17.5%

Citizens Financial Group Inc.

CFG,
+1.77%

4.03%

$1.56

$1.72

$1.88

17.0%

Welltower Inc.

WELL,
-0.42%

2.76%

$2.44

$2.64

$2.92

16.4%

Viatris Inc.

VTRS,
+1.44%

4.16%

$0.48

$0.50

$0.57

15.8%

Ventas Inc.

video recorder,
-1.91%

3.20%

$1.80

$1.98

$2.13

15.5%

Huntington Bancshares Inc.

HBAN,
+1.25%

4.62%

$0.62

$0.67

$0.73

15.4%

Altria Group Inc.

MON,
+1.13%

6.80%

$3.60

$3.98

$4.25

15.3%

Citigroup Inc.

C,
+2.64%

3.87%

$2.04

$2.20

$2.40

15.1%

Source: FactSet

Click on the tickers to learn more about each company.

Read Tomi Kilgore’s in-depth guide to the wealth of information available for free on MarketWatch’s price page.

Looking back over the past five years, three of the above companies have cut their dividends:

  • PPL Corp. PPL,
    +1.00%
    cut its payout by 52% in February.

  • Welltower Inc. Good,
    -0.42%
    cut its dividend by 30% in August 2020.

  • Ventas Inc. VTR,
    -1.91%
    cut its dividend by 43% in August 2020.

Highest current dividend yield

These 15 companies in the S&P High Yield Dividend Index have the highest dividend yields. Of the consensus estimates for payouts through 2024, two are expected to cut their dividends:

company

ticker

Current Dividend Yield

Current annual dividend rate

Estimated Dividend – 2023

Estimated Dividend – 2024

Two-year estimated dividend increase

Lumen Technologies, Inc.

LUMNS,
+2.90%

8.42%

$1.00

$0.88

$0.91

-10.3%

Altria Group Inc.

MON,
+1.13%

6.80%

$3.60

$3.98

$4.25

15.3%

Simon Property Group Inc.

self-propelled gun,
+2.60%

6.31%

$6.80

$7.14

$7.48

9.0%

Vornado Realty Trust

VNO,
+1.24%

6.25%

$2.12

$2.27

$2.30

8.0%

ONEOK Inc.

OK,
+1.04%

5.87%

$3.74

$3.82

$3.94

5.0%

Kinder Morgan Inc. Class P

KMI,
+1.19%

5.80%

$1.11

$1.15

$1.20

7.2%

AT&T Inc.

T-US

5.25%

$1.11

$1.11

$1.07

-3.5%

Verizon Communications Inc.

VZ,
-0.49%

5.05%

$2.56

$2.64

$2.70

5.0%

International Business Machines Corp.

IBM,
+1.86%

4.93%

$6.60

$7.03

$7.13

7.5%

Newell Brands Inc.

NWL,
+4.22%

4.89%

$0.92

$0.92

$0.93

0.7%

Iron Mountain Inc.

irm,
+1.21%

4.82%

$2.47

$2.55

$2.64

6.1%

Prudential Financial Inc.

PRU,
+2.35%

4.76%

$4.80

$5.10

$5.45

11.9%

williams cos inc

WMB,
+0.63%

4.69%

$1.70

$1.78

$1.86

8.7%

Philip Morris International Inc.

PM,
-0.46%

4.69%

$5.00

$5.26

$5.45

8.2%

Huntington Bancshares Inc.

HBAN,
+1.25%

4.62%

$0.62

$0.67

$0.73

15.4%

Source: MarketWatch

So two of the best-performing stocks in the S&P 500 High Yield Index are expected to see lower payouts. Over the past five years, these companies have lowered their dividends:

  • Lumen Technologies, under its former name CenturyLink, cut its dividend by 54% in February 2019.

  • Simon Property Group Inc. SPG,
    +2.60%
    cut its dividend by 38% in June 2020.

  • Vornado Realty Trust VNO,
    +1.24%
    most recently reduced its payout by 19% in June 2020.

  • AT&T Inc. T,
    +0.09%
    Cut its dividend by 47% in March in connection with its WarnerMedia spin-off.

Do not miss: Which of Buffett’s bank stocks make you the most money?

https://www.marketwatch.com/story/dividend-stocks-have-trounced-the-market-this-year-here-are-15-high-yield-stocks-expected-to-raise-payouts-the-most-through-2024-11653491326?rss=1&siteid=rss Here are 15 high-yielding stocks that are expected to grow dividends the most through 2024

Brian Lowry

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