The first 12 dividend hikes of 2025

2024 winner Cal-Maine Foods leads again

As we step into 2025, the dividend landscape is already buzzing with activity. For income-focused investors, early dividend hikes offer a glimpse of company confidence and strategic direction. Here's a closer look at the first 12 companies in the U.S. to raise their dividends this year, highlighting trends, key figures, and the industries leading the charge.

Resilient Leaders: Cal-Maine and Albertsons

Kicking off the year, Cal-Maine Foods (CALM) delivered a striking 46.2% dividend increase, making it the largest hike in this group. Known for its egg production, Cal-Maine seems to be navigating volatile commodity prices with enough stability to reward its shareholders handsomely. With a stock price of $101.71 and a dividend yield of 4.1%, it’s clear the company is focused on maintaining its appeal to income-oriented investors.

Not far behind, Albertsons (ACI) announced a 25% dividend hike. While the grocery sector is often seen as stable but slow-growing, this move signals confidence in its cash flow. Trading at $20 per share and offering a 3% yield, Albertsons’ increase underscores the company's intent to remain competitive in attracting dividend investors.

Energy Sector Shines: Plains All American and Plains GP Holdings

The energy sector has long been a favorite for dividend enthusiasts, and 2025 is no different. Both Plains All American Pipeline (PAA) and Plains GP Holdings (PAGP) raised their dividends by 19.7%. With yields of 8.1% and 7.6% respectively, these companies continue to showcase the energy sector’s ability to generate steady cash flows. Their stock prices, hovering around $19 and $20, suggest they remain accessible for a broad range of investors.

Industrial Confidence: Alamo Group

In the industrial space, Alamo Group (ALG) made a notable move with a 15.4% dividend increase. However, the company’s performance has been mixed, with a year-to-date total return (YTD TR) of -5.2%. Its modest yield of 0.7% positions it more as a growth-oriented industrial player, with this hike signaling long-term confidence rather than immediate income benefits. For Alamo this marks the 11th consecutive year of dividend increases.

Financials Make Their Mark: Jefferies, TD SYNNEX, and Independent Bank

The financial sector is well-represented among early dividend hikers. Jefferies Financial Group (JEF) boosted its dividend by 14.3%, aligning with a YTD TR of 2.2% and a yield of 2%. Similarly, TD SYNNEX (SNX), a major player in IT distribution, announced a 10% increase. While its yield is modest at 1.3%, its YTD TR of 4.1% indicates solid investor returns so far.

For regional banking, Independent Bank Corporation (IBCP) stands out with an 8.3% dividend hike. Despite a negative YTD TR of -3.4%, the bank's 2.9% yield and the hike reflect resilience in a challenging economic environment.

Modest Increases: Royalty Pharma, Apogee Enterprises, and Bank OZK

Not every hike is substantial, but even modest increases signal stability. Royalty Pharma (RPRX) raised its dividend by 4.8%, offering a yield of 3.4%. Meanwhile, Apogee Enterprises (APOG), despite a YTD TR of -26.5%, delivered a 4% increase, showing commitment to shareholder returns despite a rough market performance.

Bank OZK (OZK) followed suit with a 2.4% hike, balancing its 3.9% yield against a YTD TR of -2.9%. OZK has now raised the dividend 27 straight years with APOG hiking for the 12th consecutive year in 2025.

A Steady Player: Enterprise Products Partners

Finally, Enterprise Products Partners (EPD), a stalwart in the energy space, raised its dividend by 1.9%. While modest, this increase reflects the company’s long-standing strategy of consistent and reliable payouts. With a stock price of $32.24 and a yield of 6.6%, EPD remains a cornerstone for many income-focused portfolios. Not many investors know that EPD has hiked its dividend 27 consecutive years now.

Early Trends in 2025

The early dividend hikes in 2025 reflect a mix of confidence and caution. Energy companies dominate with robust increases, while financials and industrials highlight stability in their respective markets. Even in sectors facing challenges, companies are making efforts to reward their shareholders, signaling optimism for the year ahead.

As the year unfolds, these early movers provide a solid foundation for what could be another dynamic year for dividend growth.

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.