The 10 biggest dividend hikes in 2024
Nine stocks with a triple digit increase led by CALM
As we head into 2024, several companies have announced substantial dividend hikes, signaling robust financial performance or strategic shifts. Here's a breakdown of some of the most notable dividend increases YTD, led by fresh eggs company Cal-Maine Foods with a sensational 16,883.3% increase this year.
Cal-Maine Foods Inc (CALM)
2024 Dividend Hike: 16,883.3%
Business Overview: Cal-Maine Foods is the largest producer and distributor of fresh eggs in the United States. The company benefits from a vertically integrated production process, allowing it to maintain quality and control costs. With egg demand staying resilient and pricing volatility often driving revenue spikes, CALM is set to reward its shareholders significantly in 2024.
Please note that the CALM dividend policy is different from most other US listed companies with a quarterly payments based on the profit in this quarter. A bad quarter will result in no dividend or a small dividend and a very good quarter will push up the dividend. With egg prices soaring in 2024 CALM was able to do a massive increase from the small dividend in Q4 of 2023, which explains the gigantic growth in 2024.
Coca-Cola Consolidated Inc (COKE)
2024 Dividend Hike: 400%
Business Overview: As the largest independent Coca-Cola bottler in the U.S., Coca-Cola Consolidated plays a crucial role in manufacturing, marketing, and distributing beverages under the Coca-Cola brand. Its operational scale and exclusive franchise agreements position it well for sustained growth, reflected in its massive dividend hike. On top of this 400% dividend hike COKE also announced a special dividend in 2024.
General Electric Co (GE)
2024 Dividend Hike: 250%
Business Overview: General Electric is a diversified industrial giant, focusing on aviation, healthcare, and energy. Following a multi-year restructuring that involved spinning off several businesses, GE is refocusing on high-margin sectors, which likely contributes to its ability to reward shareholders through a significant dividend increase.
Meritage Homes Corp (MTH)
2024 Dividend Hike: 177.8%
Business Overview: Meritage Homes is one of the leading homebuilders in the U.S., specializing in energy-efficient homes. With the housing market remaining robust despite interest rate challenges, the company’s commitment to shareholder returns is evident in its sizable dividend hike.
Calavo Growers Inc (CVGW)
2024 Dividend Hike: 100%
Business Overview: Calavo Growers is a key player in the fresh produce sector, focusing on avocados and prepared foods. Despite facing challenges in 2023, the company is doubling its dividend, a sign of renewed confidence in its financial footing and market position.
Vertiv Holdings Co (VRT)
2024 Dividend Hike: 300%
Business Overview: Vertiv provides critical digital infrastructure and solutions, including data center cooling and power management systems. With the explosive growth of cloud computing and edge computing, Vertiv’s products are in high demand, allowing for this dramatic increase in shareholder payouts.
NVIDIA Corp (NVDA)
2024 Dividend Hike: 150%
Business Overview: NVIDIA, the global leader in GPUs and AI solutions, continues to dominate the technology landscape. Despite a low initial dividend yield, this increase reflects the company’s incredible growth in revenue and earnings, driven by AI and gaming industries.
BGC Group (BGC)
2024 Dividend Hike: 100%
Business Overview: BGC Group operates in financial services and real estate, offering brokerage and market data solutions. Its solid performance in 2023 has enabled it to double its dividend, rewarding investors amid a favorable market environment.
Friedman Industries Inc (FRD)
2024 Dividend Hike: 100%
Business Overview: Friedman Industries is a steel processing and manufacturing company, catering to the construction and energy sectors. The dividend hike reflects the company’s confidence in its operational stability and ability to navigate cyclical demand.
Copa Holdings (CPA)
2024 Dividend Hike: 96.3%
Business Overview: Copa Holdings, a major player in Latin American aviation, operates one of the most efficient and profitable airline networks in the region. Despite economic headwinds, Copa's improved financial performance in 2023 has set the stage for this near-doubling of its dividend.
Final Thoughts
These impressive dividend hikes showcase a wide range of industries thriving despite global economic uncertainties. From the staples sector to tech, these companies demonstrate resilience and growth, making their payouts noteworthy in the coming year. While dividends are an important metric for income investors, always ensure they align with broader portfolio strategies before making decisions.
None of the 10 stocks mentioned above have a dividend track record of more than 2 consecutive years of increases. No Aristocrats here……….
Disclaimer: The information provided here is for informational purposes only and should not be considered financial advice. Investors should conduct their own research or consult with a financial advisor before making any investment decisions.