These 3 Stocks Just Announced Dividend Increases of 33% to 55%

While shareholders often welcome dividend increases of any size, the bigger the boost, the bigger the impact. Typically, dividend boosts in a single period don’t extend much higher than 20%. However, that’s not the case for the three names discussed below.

They just announced huge increases of 33% or more, demonstrating their commitment to returning increasingly higher amounts of capital to shareholders. Let’s dive into the three stocks that are lifting their dividends by some of the highest percentages investors will encounter. All data is as of the August 8 close.

Excelerate Energy More Than Triples Its Dividend in One Year

The first is Excelerate Energy (NYSE: EE). This mid-cap energy company just announced a dividend increase that is anything but middling. On July 31, Excelerate lifted its quarterly dividend to 8 cents per share, a rise of 33% from its previous payment. The increase comes as Excelerate acquired liquefied natural gas (LNG) and power assets in Jamaica, increasing its contracted and recurring cash flow. 

This new dividend is payable on September 4 to shareholders of record as of the August 20 close. This gives the stock an indicated dividend yield of approximately 1.3%. Notably, this dividend increase moves the stock's yield to above the 1.1% yield of the S&P 500 Index.

Excelerate has experienced massive growth in its dividend over the past year. In September of 2024, Excelerate paid a dividend of just 2.5 cents per share. Thus, this latest boost means that Excelerate has increased its quarterly dividend by 220% in approximately 12 months. 

The company expects its dividend growth rate to slow significantly, but it should still be competitive. Excelerate targets a “low double-digit annual dividend growth rate” from 2026 to 2028. This shows that the firm has a solid chance of continuing to deliver a higher dividend yield for investors over the next few years.

TPG Makes Strong Gesture to Shareholders, Raises Dividend 44%

Next up is alternative asset manager TPG (NASDAQ: TPG). The company lifted its quarterly dividend to 59 cents per share. Compared to Excelerate, this new dividend marks an even more impressive 44% boost versus its last payout.

Still, it is essential to note that, like many alternative asset managers, TPG’s dividend shifts quarterly. In fact, over the last 13 quarters, TPG has never paid the same dividend per share for two quarters in a row.

This makes it hard to put an exact number on the firm’s forward-looking dividend yield.

However, extrapolating the company’s recent dividend growth would put it at around $1.94 per share over the next twelve months. That would equal a dividend yield of approximately 3.1%. Wall Street estimates that the firm’s next 12 months' yield will be around 3.7%.

Despite the subjectivity in calculating the stock’s forward yield, the fact that TPG’s dividend has trended upward significantly over time is undeniable. It paid out $1.65 in 2024, compared to $1.09 in 2022.

BWA Returns to Dividend Growth With Massive New Increase

The most significant dividend increase comes from BorgWarner (NYSE: BWA). The company makes various components for combustion, hybrid, and electric vehicles. On July 31, the company announced a huge 55% boost to its quarterly dividend. Its new 17-cent per share dividend will be payable on September 15 to shareholders of record on September 2. This move lifts the firm’s indicated dividend yield to nearly 1.8%.

The company’s huge dividend increase has been a long time coming; BorgWarner had not lifted its dividend in eight quarters.

The firm’s dividend per share returns to the same level it was from 2017 to mid-2023 after BorgWarner significantly reduced its dividend in late 2023.

This dividend increase comes as the company has recently seen a huge improvement in its free cash flow. Over the last 12 months, BorgWarner's FCF reached $1.175 billion, the highest level in its history. Further demonstrating the firm’s FCF improvement is that BorgWarner also increased its share buyback authorization to $1 billion. 

This is equal to a huge 12% of the company’s market capitalization.

EE, TPG, & BWA All Now Provide Investors With Above-Market Yields

Overall, these three stocks’ recent dividend increases are very impressive, blowing the typical boosts companies announce out of the water.

Additionally, all three now hold expected yields that solidly eclipse that of the S&P 500 Index, allowing investors to generate above-market yields.

Companies Mentioned in This Article: