Stocks to buy

Dividend Dynamos: 3 Stocks With Unstoppable Payouts

A lot of dividend stocks have announced increases to start the year as their earnings for the final months of 2023 came in better than had been anticipated. French automaker Renault (OTCMKTS:RNLSY) just raised its dividend payment by an astounding 640%. Coca-Cola (NYSE:KO) has hiked its dividend for the 62nd year in a row, securing the beverage giant in a a select group of companies that have boosted their payouts for 60 years or more.

Organizations continue to view dividends as a positive way to reward shareholders and attract new investors who look to generate passive income from their portfolio. Payments from dividend stocks continue to be highly prized by investors, particularly those in retirement and living on a fixed income. With earnings remaining strong and plenty of cash on hand, publicly traded companies are able to maintain and grow their dividend payments over many years. Here are dividend stocks with unstoppable payouts.

Domino’s Pizza (DPZ)

Source: Ken Wolter /

Domino’s Pizza (NYSE:DPZ) just has raised its quarterly dividend by 25% as it reported better-than-expected financial results. The company that operates more than 18,000 pizza outlets worldwide announced that it will pay shareholders a quarterly dividend of $1.51 per share going forward, up from $1.21 previously. The increased dividend payout takes the yield on DPZ stock up to 1.35%. Domino’s also announced a new $1 billion stock buyback, which is in addition to the $141.3 million that’s outstanding on a current share repurchase program.

This is the 20th year that Domino’s Pizza has paid a dividend to shareholders. Since 2004, the dividend payout has increased more than 2,400%, rising from 6 cents a share to $1.51 today. Domino’s has also paid out special, one-time dividends to its shareholders on occasion, including a heft payment of $13.50 per share back in 2007. The current dividend looks sustainable given that Domino’s continues to report financial results that exceed expectations, and it is in a good cash position. DPZ stock is also performing well, having risen 51% in the last 12 months.

UBS Group (UBS)

Source: Linine

Swiss banking giant UBS (NYSE:UBS) also recently raised its dividend payment to shareholders by 25% after posting strong earnings. Going forward, UBS said it will pay its stockholders an annual dividend of 70 cents a share, up from 56 cents before. The new dividend payment works out to 17.5 cents per share each quarter, and lifts the dividend yield on UBS stock to a strong 2.42%. The dividend hike was announced along with plans for UBS to restart its share repurchase program in the second half of this year. UBS said it plans to buyback $1 billion of its own stock by the end of 2024.

The dividend hike and resumption of stock buybacks comes as UBS successfully integrates former rival Credit Suisse, which it bought for $3.2 billion in March of last year amid the short-lived global banking crisis. UBS has said that the absorption of Credit Suisse has gone smoother and quicker than anticipated, including the layoffs of more than 3,000 staff and resulting severance packages. That UBS is confident enough to raise its dividend payment to shareholders is a positive sign. UBS stock has increased 23% in the nearly one year since it took over Credit Suisse.

American Express (AXP)

Source: First Class Photography /

Since the year 2000, credit card giant American Express (NYSE:AXP) has grown its dividend payout 775%. In late January of this year, the company announced that it is raising its quarterly dividend payment by 17% as its 2024 outlook improves. American Express will pay a dividend of 70 cents per share, up from 60 cents previously. The increased dividend payout will begin with the first quarter 2024 dividend declaration, the company said. The increase lifts American Express’ annual dividend yield above 1.50% and takes its annual payout to $2.80 per share.

The dividend increase was announced along with a sunny outlook, with American Express saying that it expects revenue growth of 9% to 11% and earnings of $12.65 to $13.15 this year. The guidance was better than the earnings of $12.38 a share expected on Wall Street. The credit card company said that it foresees consumer spending remaining strong throughout 2024, and possibly strengthening in 2025 as well. Since announcing the positive forward guidance and dividend increase, AXP stock has been on a tear, rising 15% through two months of the year. In the last 12 months, the stock is up 25%.

On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.