In this article, we discuss 10 Dow Jones stocks that will boost their earnings soon. You can skip our detailed analysis of dividend stocks and their performance over the years, and jump right in to reading These five Dow Jones stocks will boost their earnings soon.
The Dow Jones Industrial Average, commonly known as the Dow, is a popular stock market index in the United States and the world. It tracks the performance of 30 companies traded on US stock exchanges. These companies represent different industries, giving the index a diverse view of the stock market. In 2023, the Dow Jones Industrial Average finished the year with a notable increase of 13.7%, representing a huge gain for investors. Throughout the year, the index also achieved a new record high, demonstrating the stock market’s strength and upward momentum.
Many companies included in the Dow Jones Index are known for paying dividends. These dividends can be an attractive feature for investors looking for income from their investments. The “Dogs of the Dow” strategy is a popular investment approach within the DJIA. It involves selecting and investing in stocks from DJIA that have the highest dividend yield. The strategy has shown mixed performance over the years. In the past five years, dogs have performed worse than the S&P 500 and the Dow Jones on four occasions, including 2023, Barron’s reported. The report also stated that over a 20-year period from the end of 2023, the average annual return for dogs was just above 8%, including dividends. This lags the S&P 500 by just over 1% each year. However, at the end of 2018, when observing from the end of 2003, the Dogs were already leading the S&P 500 by about 1% per year.
Many companies within the Dow Jones Industrial Average boast a history of dividend growth and maintain a track record of increasing payouts to shareholders. However, economic challenges, shifts in industry trends, or company-specific circumstances may prompt some components of the Dow Jones Index to maintain stable but unchanged earnings levels or, in some cases, even reduce their dividends. For example, Walgreens Boots Alliance, Inc. topped the list. (NASDAQ:WBA) recently made headlines with an important decision to cut its dividend. This decision is notable because it breaks a streak of 48 consecutive years of dividend increases. The company has been known for its ongoing, long-term commitment to raising dividends, making this move quite unexpected and significant within the financial community. However, some companies within the Dow Jones Industrial Average, such as Johnson & Johnson (NYSE:JNJ) and Procter & Gamble (NYSE:PG), have consistently increased their dividends for many years. In this article, we will discuss some of the Dow Jones stocks that will boost their earnings soon.
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Our methodology:
To compile this list, we examined the 30 stocks included in the Dow Jones Industrial Average and focused specifically on the dividend-paying stocks among them. From this group, we’ve selected three stocks that recently increased their dividends over the past three months. Additionally, we’ve identified seven stocks that, based on their historical dividend growth patterns in prior years, show strong potential to raise their dividends in the months ahead. This analysis was based on companies’ records of dividend growth, suggesting that upward trends in their dividend payments are likely to continue. Stocks are ranked in ascending order based on current and projected dates of dividend growth.
10. JPMorgan Chase & Co. (NYSE: JPM)
Last dividend increase: September 2023
JPMorgan Chase & Co. (NYSE:JPM) is a leading global financial services company operating in various segments of the financial industry. On December 12, the company declared a quarterly dividend of $1.05 per share, after raising it in September 2023. As of January 5, the stock had a dividend yield of 2.45%.
In the third quarter of 2023, JPMorgan Chase & Co. (NYSE:JPM) had revenues of about $40 billion, which showed a growth of 22% over the same period last year. During the quarter, the company returned $3.1 billion to shareholders through dividends.
At the end of the third quarter of 2023, 109 hedge funds in Insider Monkey’s database reported having stakes in JPMorgan Chase & Co. (NYSE:JPM), up from 106 in the previous quarter. The total value of these shares is more than $6.6 billion.
ClearBridge Investments JPMorgan Chase & Co. reported. (NYSE:JPM) in its Q3 2023 investor letter. Here’s what the company had to say:
“In addition to business models that support biodiversity, it is also important to provide financing for efforts to improve biodiversity.” Large financial companies such as ClearBridge Holding JPMorgan Chase & Co. (NYSE:JPM) has a key role here through its green bond guarantees that support the protection of natural capital. In 2021, JPM announced a target to finance and facilitate $1 trillion towards green initiatives by 2030 as part of its broader $2.5 billion Sustainable Development Goal. Green initiatives include biodiversity-related areas such as water management, circular economy and waste management, as well as biodiversity conservation which focuses on improving ecosystems or forests for terrestrial and aquatic biodiversity.
As part of this goal, in 2022 JPM served as lead underwriter on a $350 million green bond issued by the Nature Conservancy, the largest green bond issuance by a conservation nonprofit ever. This release is expected to help The Nature Conservancy avoid or sequester 3 billion metric tons of carbon dioxide equivalent (CO2e), and maintain 650 million hectares of healthy land, 30 million hectares of fresh water, and 4 billion hectares of ocean.
9. Honeywell International (NASDAQ:HON)
Last dividend increase: September 2023
Honeywell International (NASDAQ:HON) is a multinational corporation operating across various industries and providing a wide range of products and services. In the third quarter of 2023, the company recorded a strong cash position, with operating cash flow reaching $1.8 billion and an operating cash flow margin of 19.6%. In addition, the company generated $1.6 billion in free cash flow. It returned $2 billion to shareholders during the quarter through dividends.
(NASDAQ:HON) last raised its dividend on September 29, 2023, by 5%, bringing its quarterly earnings per share to $1.08. This marks the company’s 14th increase in profits in 13 consecutive years. The stock’s dividend yield on January 5 was 2.11%.
As of the end of the third quarter of 2023, 60 hedge funds tracked by Insider Monkey owned stakes in Honeywell International Inc. (NASDAQ:HON), compared to 61 funds in the previous quarter. The combined value of these shares amounts to more than $2.27 billion. With nearly 2 million shares, Adage Capital Management was the company’s majority shareholder in the third quarter.
8. Amgen (NASDAQ:AMGN)
Last dividend increase: December 2023
Amgen Corporation (NASDAQ:AMGN) is a global biopharmaceutical company primarily focused on developing and manufacturing treatments for serious diseases. On December 12, the company announced a 5.6% increase in its quarterly dividend to $2.25 per share. With this increase, the company extended its earnings growth streak to 11 years. The stock offers a dividend yield of 2.97% as of January 5.
(NASDAQ:AMGN) generated more than $2.5 billion in free cash flow in the third quarter of 2023. Its operating cash flow for the quarter was $2.8 billion. Additionally, the company returned more than $1.1 billion to shareholders through dividends during the quarter.
The number of hedge funds tracked by Insider Monkey that own stakes in Amgen Inc. has risen. (NASDAQ:AMGN) to 60 in the third quarter of 2023, from 57 in the previous quarter. The total value of these shares amounts to more than $2.16 billion.
7. Chevron Corporation (NYSE:CVX)
Expected month for dividend increase: January 2024
Chevron Corporation (NYSE:CVX) is one of the largest multinational energy companies operating across various sectors of the energy industry. The company has a 36-year history of increasing its dividend, and last year, it announced a 6.3% dividend increase on January 25th. This announcement is consistent with its historical pattern of increasing dividends over a similar time frame in previous years. The company currently pays a quarterly dividend of $1.51 per share and has a dividend yield of 4.01% as of January 5. It is one of the notable Dow Jones stocks that will boost its earnings soon.
In the third quarter of 2023, Chevron (NYSE:CVX) reported operating cash flow of $9.7 billion. Year to date, the company has returned nearly $20 billion to shareholders, showing 27% growth over last year’s record total for the same period.
Chevron (NYSE:CVX) was part of 72 hedge funds’ portfolios at the end of the third quarter of 2023, compared to 73 portfolios in the previous quarter, according to the Insider Monkey database. The total value of the stakes owned by these hedge funds is more than $21.4 billion.
6. 3M (NYSE: MMM)
Expected month for dividend increase: February 2024
American multinational company 3M (NYSE:MMM) is one of the Dow Jones stocks that will boost its earnings soon. In February 2023, the company increased its dividend for the 65th consecutive year, continuing its impressive record of annual dividend enhancements. Based on its historical patterns, the company is expected to follow suit and announce an earnings increase next February. It currently pays a quarterly dividend of $1.50 per share and has a dividend yield of 5.55%, as recorded on January 5.
As of the end of the third quarter of 2023, 54 hedge funds in Insider Monkey’s database owned stakes in 3M (NYSE:MMM), up from 49 in the previous quarter. The total value of these shares amounts to more than $818.6 million. Among these funds, Ken Griffin’s Citadel Investment Group was the company’s largest shareholder in the third quarter.
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disclosure. no one. Dow Jones stocks will boost their earnings soon Originally published on Insider Monkey.