While recent dividend cuts may make investors concerned about what’s to come next, there are still many stocks that have dependable dividend increases. Some of those names are even beating the market. Last week, Intel slashed its dividend by more than 65% , following VF Corp.’s dividend cut and Hanesbrands elimination of its dividend last month. While VF Corp . and Intel have a history of raising dividends, in general companies that tend to increase their dividends over time don’t cut them back as much during downturns. In fact, Howard Silverblatt, senior index analyst at S & P Dow Jones Indices, recently told CNBC he is expecting dividends to easily set a record this year. He’s expecting a 5% to 6% increase. In 2022, U.S. common dividend increases were up 5% to $82.5 billion from $78.6 billion in 2021, according to S & P Dow Jones Indices data. Decreases were up 63% to $14.3 billion in 2022, compared with $8.8 billion the year prior. With that in mind, CNBC Pro looked for stocks that have a track record of dividend increases and are outperforming the market. To find those names, we used FactSet data to screen for companies that have boosted dividends in at least four of the past five years and have a dividend yield of 2% or more. They also have one-year dividend-per-share growth of at least 15%. In addition, they have a year-to-date performance that’s greater than 2.91%, beating the S & P 500 . CME Group has a dividend yield of 2.4%. The exchange operator has increased its payout four of the last five years and has a one-year dividend-per-share growth of 24.1%. Meanwhile, the stock is up more than 9% in 2023. CME Group posted fourth-quarter earnings in February that surpassed expectations and reported a 6% year-over-year increase in its average daily volume. HP, which currently yields 3.7%, has raised its dividend every year in the last five years. Its one-year dividend-per-share growth is 29%. The technology company posted mixed first-quarter results earlier this week , with adjusted earnings per share coming in at 75 cents compared to the 74 cents analysts expected, according to FactSet. It missed on revenue. However, HP maintained its full-year earnings target on expectations that the easing of Covid restrictions in China will help demand recovery. United Parcel Service has the highest one-year dividend-per-share growth at 49% on our list. It currently yields 3.5% and has raised its dividend every year in the past five years. The stock is up more than 5% year to date. In January, UPS reported mixed fourth-quarter results , beating analysts’ estimates on earnings but missing on revenue. Finally, Target has a 2.7% dividend yield and has a one-year dividend-per-share growth of 22.5%. The retailer beat Wall Street’s expectations for both earnings and revenue for its fiscal fourth quarter, but its full-year EPS guidance missed estimates. Target also recently announced it will spend $4 billion to $5 billion in the coming fiscal year to offer fresh merchandise, new services and faster delivery. That includes opening about 20 new stores and launching or expanding more than 10 private label brands. Private label, or store brands , are generally less expensive than name brands and typically provide larger margins for retailers. “In an environment where consumers are making trade-offs, more of the same is not going to get it done,” Christina Hennington, Target’s chief growth officer, said at an investor event in New York on Tuesday. — Melissa Repko contributed reporting.
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