3 Stocks Announcing Dividend Hikes of 11% or More

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3 Stocks Announcing Dividend Hikes of 11% or More.

stock :: 13hrs ago :: source - 24/7 wallstreet

By Rich Duprey

Quick Read

Costco (COST) raised its dividend 13% to $1.47 quarterly with 21 consecutive years of increases and a comfortable 28% payout ratio; Parker-Hannifin (PH) lifted its quarterly payout 11% with 70 consecutive years of annual increases and a 26% payout ratio; Comfort Systems USA (FIX) increased its dividend 14.3% to $0.80 quarterly with 13 consecutive years of raises and an exceptionally low 8% payout ratio plus $12.45B record backlog.
Dividend-growth stocks that initiate or raise payouts have delivered 10.24% annualized returns since 1973 versus 6.75% for non-growers, rewarding patient investors through yield on cost compounding while these three companies maintain the financial flexibility to sustain future hikes.
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Ever wonder why some portfolios keep delivering steady income even when the market turns choppy? Dividend growth stocks have a quiet edge. According to Hartford Funds’ analysis with Ned Davis Research, S&P 500 stocks that initiated or grew their dividends delivered 10.24% annualized returns since 1973 -- well ahead of the 6.75% for companies that left payouts unchanged.

Those same growers and initiators have never posted a decade of losses relative to the broader market. That track record reassures investors who want both income today and capital appreciation tomorrow.

Yet a dividend hike alone never makes a stock an automatic buy. Companies that have raised payouts for decades can and do cut when the business weakens. What matters is the quality underneath -- strong cash flow, competitive moats, and room to keep growing.

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Three stocks just announced double-digit increases that passed that test: Costco Wholesale (NASDAQ:COST), Parker-Hannifin (NYSE:PH), and Comfort Systems USA (NYSE:FIX). Let’s look at each one and see if it is a buy today.

Costco Wholesale (COST)

Costco announced it was raising its quarterly dividend 13% to $1.47 per share on April 15. The new annual rate hits $5.88. That marks the 21st consecutive year of increases, with average annual dividend growth of roughly 12.5% over the past decade.

The payout ratio sits at a comfortable 28% of earnings, leaving plenty of cash for store expansions, e-commerce, and the membership model that keeps members renewing year after year.

March comparable sales rose 9.4%, and digital sales jumped 23.3%. The stock trades around 52 times trailing earnings -- premium pricing, yes -- but revenue has compounded at a double-digit clip for years while the company reinvests aggressively.

Even though that current yield looks low at about 0.5%, yield on cost paints a brighter picture for patient investors. Yield on cost measures your annual dividend against the price you originally paid -- not today’s market price. With 12.5% average annual growth over the past decade, anyone who bought 10 years ago now earns more than three times the yield on their original investment. The business quality here supports both.

Parker-Hannifin (PH)

On April 23, Parker-Hannifin lifted its quarterly payout 11% to $2.00 per share, its 304th consecutive quarterly dividend and part of 70 straight years of annual increases. Five-year dividend growth averages 13.7%.

The payout ratio lands at 26% of trailing earnings and just 20% of free cash flow. That conservative stance gives Parker room to fund acquisitions, buybacks, and R&D in its aerospace and industrial segments. The diversified customer base -- everything from factories to aircraft -- helps smooth out cycles that might trip up narrower peers.

At roughly 35 times earnings, the valuation looks reasonable for a business that has delivered consistent growth. Even with the forward yield near 0.8%, long-term shareholders see their yield on cost improve year after year. Yield on cost divides the current dividend by your purchase price from whenever you bought in. Parker’s 13.7% average annual growth over the past five years means investors who bought then now collect almost double the yield they started with. Parker proves that decades of raises can pair with disciplined capital allocation.

Comfort Systems USA (FIX)

Comfort Systems USA announced a 14.3% quarterly increase to $0.80 per share on April 23. The new annual rate reaches $3.20 per share. The company has now raised dividends for 13 consecutive years after initiating payments in 2005.

Here the payout ratio is exceptionally low -- around 8% of earnings. First-quarter 2026 results showed why: revenue climbed to $2.87 billion from $1.83 billion a year earlier, with organic growth of 51%. Net income more than doubled to $370 million, and free cash flow reached $242 million. Its backlog stands at a record $12.45 billion.

Comfort Systems trades at a premium multiple (near 60 times trailing earnings), reflecting its rapid expansion in commercial HVAC and electrical work.

Though the current yield appears tiny at 0.16%, holding long term boosts your yield on cost meaningfully. Thanks to 13 straight years of increases and the business’s rapid expansion, shareholders who have owned since initiation have watched their effective yield multiply several times over as dividends compound. That low payout still leaves ample cash to handle any construction slowdowns while still supporting future hikes. The combination of earnings momentum and dividend growth delivers the full package of income plus appreciation.