Five Stocks With Major Dividend Raises Expected This Quarter

The coming weeks will see companies across multiple sectors announce their latest shareholder distributions. While many will deliver modest annual bumps, a select group has established a clear pattern: year-after-year dividend raises that dramatically exceed the market average. These firms have the financial firepower and management commitment to boost payouts by anywhere from 40% to 100%—and they’re positioned to repeat that performance in the near term.

Why Consistent Dividend Raises Matter for Long-Term Returns

There’s a powerful dynamic at work in companies that commit to aggressive payout increases. When a business demonstrates the discipline to raise its dividends quarter after quarter or year after year, the stock price gradually aligns with that rising income stream. It’s not flashy, but it’s predictable. Consider Lockheed Martin (LMT), a classic case study. Over 15 years of holding the stock, investors who benefited from its consistent dividend raises now sit on an effective yield exceeding 18%—far above the 2.5% current headline rate. That’s the power of compounding at work.

The companies profiled below have all demonstrated this capability. Each raised dividends by between 39% and 100% in recent years, and each has signaled additional increases are coming within the next month.

Financial Services and Insurance: Primerica Leads the Charge

Primerica (PRI) has more than doubled its payout in just four years, making it one of the market’s most aggressive dividend raisers in the financial services sector. The company sells insurance products, investment vehicles, retirement plans, and wealth-management solutions primarily to middle-income households across North America.

The fundamentals remain solid. Primerica has grown revenue every single year for over a decade, though profit expansion has been less consistent. Management expects low double-digit earnings growth for full-year 2025, though mounting consumer pressure from higher living costs may temper enthusiasm for 2026.

The critical question: Will Primerica’s next dividend raise—anticipated in early February—reflect the strength of 2025 or the headwinds building for next year? The company’s recent track record provides a strong answer. Its 2025 payout increase was nearly 40% above where distributions started the year, and significantly higher than mid-2024 levels, when PRI executed a second dividend raise in a single calendar year. Adding fuel to the fire, Primerica just announced a $475 million stock buyback authorization for 2026, signaling confidence in capital deployment.

Restaurants and Retail: A Two-Part Story

Yum China Holdings (YUMC) operates KFC, Pizza Hut, and Taco Bell franchises across China, along with other regional chains including Lavazza coffee and Little Sheep hot pot. The Shanghai-based company has driven steady top-line growth since splitting from its U.S. parent in 2016, and management is pursuing aggressive expansion—targeting 1,600 to 1,800 net new store openings in 2025 alone.

Yet profitability growth has lagged expectations, leaving YUMC shares flat since 2020 despite robust revenue expansion. That prompted management to prioritize returning cash to shareholders. The payoff was dramatic: After taking seven years to grow its dividend from 10 cents per share (2017) to 16 cents (2024), the company unveiled a 50% raise to 24 cents in 2025. With the payout representing roughly one-third of projected 2026 earnings, room for another significant dividend raise exists, though management may temper enthusiasm to fund its expansion pipeline.

Penske Automotive Group (PAG) takes a different approach. This international dealer network operates auto franchises across the U.S., U.K., Germany, Italy, Canada, and Japan, plus a commercial truck retail business and logistics services stake. Penske is a dividend-raising machine: The company has executed quarterly distribution increases for more than a decade—with only a brief 2020 suspension that was quickly reversed.

That track record has made PAG a must-watch name for income investors. The next announcement is likely to arrive in late January or early February. However, a cautionary note: Net income has trended lower over the past two years, and Wall Street expects another decline for full-year 2025 followed by flat earnings in 2026. That makes investors rightfully curious about management’s confidence in maintaining aggressive dividend raises amid this profit headwind.

Industrial Champions With Fortress-Level Profitability

Comfort Systems USA (FIX) provides HVAC, electrical, plumbing, and related systems for commercial properties. The company has benefited from steady demand across its manufacturing and technology customer base. The tech segment, in particular, stands to gain as data center buildouts accelerate to support artificial intelligence infrastructure rollouts.

The results speak for themselves. FIX’s dividend has exploded 471% since 2020, transforming what was a sub-1% yield into a 4%+ distribution for early buyers of the stock. Recent quarterly results were outstanding: organic revenues jumped 33%, earnings per share doubled, and operating cash flow surged 83%. Another major dividend raise appears highly probable, with late February the likely timing based on historical patterns.

Howmet Aerospace (HWM) manufactures jet engine components, aerospace fasteners, airframe structures, and forged wheels for commercial applications. The former Arconic subsidiary has positioned itself at the intersection of aerospace demand and advanced materials innovation. In December, HWM announced an $1.8 billion acquisition of Consolidated Aerospace Manufacturing—adding precision fasteners and fluid fittings to its portfolio—from Stanley Black & Decker (SWK).

The dividend trajectory matches the aggressive growth profile. HWM’s payout has grown 6x in just five years. The company doubled its dividend to 20 cents in early 2025, then added another 2 cents midyear. Full-year 2025 earnings are projected to expand 37%, moderating to 20% EPS growth in 2026—still substantial. Management should announce its next raise in late January.

The Dividend Raises Strategy: Long-Term Wealth on Autopilot

These five companies share a common DNA: stable or growing businesses, management teams committed to shareholder returns through rising dividends, and the financial capacity to sustain those raises even during economic churn. It’s a formula that has produced reliable results across market cycles.

The strategy itself is straightforward but powerful. Buy reasonably valued, dividend-raising companies, then allow those rising distributions to compound over time while patiently waiting for stock prices to follow. History shows this approach can deliver 15% annualized returns over extended horizons—enough to double invested capital every five years. That’s the mathematical proof behind why dividend raises matter far more than most investors realize.