From Yahoo Finance · · 2m
Five dividend raises that beat inflation
Five US companies just hiked payouts fast enough to outrun a 0.4% monthly CPI move, and one raise stands above the rest.
In brief
Five US companies just hiked payouts fast enough to outrun a 0.4% monthly CPI move, and one raise stands above the rest. For retirement income, the rate a dividend grows matters more than the yield it starts at, and cash flow is what proves the raise can repeat. Originally reported by Yahoo Finance.
The real income question
CPI reads 334.1 and rose 0.4% last month. A fixed payout quietly shrinks against that. A rising one holds its ground.
“A static yield loses ground against a backdrop like that. A rising payout defends it.”
Growth beats yield
These five were ranked by the size, consistency, and cash flow behind their latest hike, not by headline yield. Each raise clears a low single digit inflation pace.
Lowe's raises into a slump
The quarterly dividend went from $1.20 to $1.25, yielding near 2.47%. Revenue hit $25.96B, up 8.34%, with adjusted EPS of $4.40 against a $4.22 consensus.
But the stock is bleeding
Operating cash flow of $3.659B easily covered the $672M payout. Still, shares are down 17.13% this year and 26.27% over twelve months as DIY demand stays soft.
Texas Instruments keeps stepping
The payout rose from $1.36 to $1.42, yield near 2.17%. Revenue jumped 22.82% to $5.46B and EPS of $2.14 beat estimates by 10.56%.
“extending a pattern of raising, holding, and raising again”
Capex squeezes the cash
Trailing free cash flow was $6.53B, 33.6% of revenue, but the 300mm buildout is eating $4.55B against $7.153B of operating cash flow.
UnitedHealth lifts and buys back
The quarterly dividend moved from $2.21 to $2.32, an annualized $9.28 a share. Guidance rose to $19.50-$20.00 EPS and buybacks doubled to at least $5.0B.
Legal and membership overhang
Medicare Advantage membership dropped by 965,000, Optum Health revenue fell 5%, and a DOJ Medicare investigation is still open.
Broadcom pays little, grows fast
The dividend went from $0.59 to $0.65 on a 0.72% yield, held down by the share price. AI chip revenue hit $16.7B, up 221%, with free cash flow at 46% of revenue.
ADP takes the top spot
The board jumped the quarterly payout from $1.54 to $1.70, the biggest raise here. Operating cash flow of $5.441B covered a $2.626B dividend with room left over.
“the cleanest defense a retirement portfolio can hold against slow price erosion”
The essence
For retirement income, the rate a dividend grows matters more than the yield it starts at, and cash flow is what proves the raise can repeat.
