Ten dividend stocks from a 65-stock model portfolio raised payouts more than 25% since 2023 while covering the dividend at least 1.5x with free cash flow. AbbVie yields 4.9%.
A screen of 65 dividend stocks in a model portfolio tracked by AlphaScala identified ten names that raised payouts more than 25% since 2023. Each covers its dividend at least 1.5 times with free cash flow. The list spans healthcare, consumer staples, industrials, energy, and utilities.
AbbVie (ABBV) leads the group by yield at 4.9%, supported by a 28% dividend increase over three years. The payout ratio fell to 47% of trailing earnings, down from 65% during the Humira patent-cliff period. Bristol Myers Squibb (BMY) yields 4.7% with a 30% payout increase, though its coverage ratio is tighter at 1.3 times free cash flow.
UnitedHealth Group (UNH) raised its dividend 35% since 2023 but yields only 2.0%, reflecting stock outperformance. Pfizer (PFE) offers the highest yield among large-cap pharma at 5.8%, with a 27% payout increase. The company's coverage sits at 1.6 times.
Johnson & Johnson (JNJ) has a 3.3% yield after a 26% payout increase. It generated $22.5 billion in free cash flow last year against $12.4 billion in dividend payments. That gives it a coverage ratio of 1.8 times, the widest in the group.
Procter & Gamble (PG) pays 2.5% after a 29% dividend hike over three years. The payout ratio is 60%, in line with its historical norm. PepsiCo (PEP) yields 3.1% with a 27% increase, though its ratio has crept up to 67% as free cash flow growth slowed.
Exxon Mobil (XOM) yields 3.6% after a 33% increase. The company's own disclosures show it can sustain that pace only if oil stays above $65 a barrel. Caterpillar (CAT) yields 2.0% after a 28% increase, with coverage at 2.2 times. Duke Energy (DUK) yields 4.3% after raising its dividend 26%, with a payout ratio of 74%.
Apple (AAPL) appears in the broader portfolio but did not make the top 10 cut for dividend growth. Its Alpha Score sits at 57 out of 100 on the AlphaScala scale. The current price is $309.35, down 0.63% on the day. Microsoft (MSFT) has a stronger Alpha Score of 71 out of 100, with the stock trading at $483.24, up 0.43%. Both technology names yield below 1% with low-teen payout growth. IBM (IBM) rounds out the major tech holdings with an Alpha Score of 46 out of 100.
Of the ten high-growth names, Johnson & Johnson's free cash flow covered its dividend 1.8 times last year, the widest margin in the group.
Prepared with AlphaScala editorial tooling from the source reporting linked above. Indexable analysis may include a cited Alpha Score value. Publishing checks screen each story before release. Educational coverage, not personalized advice.