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Globe and Mail
16 hours ago
- Business
- Globe and Mail
Are You Missing Out on These 2 Dividend Raises From Famous Companies?
Early summer isn't typically a hot period for dividend raises, and this year's version is no exception. Lately, income investors have had to be satisfied collecting payouts that were fixed several quarters -- or even years -- ago. Over the past few days, there emerged two major exceptions to this trend -- monster retailer Target (NYSE: TGT) and Darden Restaurants (NYSE: DRI), owner and operator of well-known dining chains such as Olive Garden, Ruth's Chris Steak House, and The Capital Grille. Here's a little more about both payout pumps. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » 1. Target Of the two dividend raises, Target's was the more predictable. That's because the company is a Dividend King, meaning it's one of the very select group of S&P 500 component stocks that has upped its payout at least once annually for a minimum of 50 years running. In mid-June, the company extended this streak to 54 years with a nearly 2% bump in its quarterly payout to $1.14 per share. This particular dividend raise might be more necessary than previous lifts. A once-popular stock, Target has fallen out of favor, on the back of recent drops in certain fundamentals and other factors such as its poorly received retreat from diversity, equity, and inclusion (DEI) strategies. The uncertain future of President Trump's tariffs isn't helping either. Target's latest quarterly earnings release didn't exactly inspire confidence in the market. First-quarter net sales fell by 3% year over year to a little under $24 billion on comparable sales that dipped nearly 4%, rare declines for a company that typically improves those metrics. Non-GAAP (generally accepted accounting principles) adjusted net earnings also headed south, falling a steep 36% to $1.30 per share. To right the ship, management has created what's essentially a task force with its so-called " enterprise acceleration office." This unit is responsible for slimming the company's operations and making them more efficient, hence better positioned for (hopefully) a return to growth. I'd give Target a better-than-average chance of this initiative succeeding. In its long life, it's gotten past many challenges, and besides, it's actually doing quite well in certain corners of its business. For example, there's online comparable sales, which even in this Age of Digital are continuing to grow at admirable rates -- nearly 5% in quarter one. Meanwhile, in terms of valuations, the stock is now cheap, with a PEG ratio barely treading water at a bit over 1. This makes me feel Target is a potentially strong recovery story trading at a generous discount now. The company's dividend raise takes effect in a few months; the new payout will be dispensed on Sept. 1 to investors of record as of Aug. 13. At the current share price, its yield would be a very appealing 4.7%. 2. Darden Restaurants Elsewhere in the consumer goods sector, Darden also enacted a dividend raise in June. In contrast to Target, the hike was fairly generous, at 7% over its predecessor. The new quarterly dividend is $1.50 per share. Darden isn't a Dividend King like Target, but it's been a regular payer since 1995 and a frequent raiser. It did cut its payout during the pandemic -- hardly a shocking move, as the restaurant industry was badly affected by the near-disappearance of in-person dining. Since then, though, Darden has come roaring back, with the company paying out more than it did in the pre-COVID days. Another appealing draw of being a Darden shareholder is the company's frequent stock buybacks. Also in June, its board of directors authorized a new repurchase initiative of up to $1 billion for its common stock. The company is rarely shy to spend its capital this way, as in its latest reported quarter it expended $51 million on buybacks. Speaking of that period -- Darden's fiscal fourth quarter of 2025 -- total sales rose by 11% year over year (although this was skewed by the addition of the 103-restaurant strong Chuy's Tex Mex chain, a 2024 acquisition). The more revealing same-restaurant sales metric was up comfortingly, though, with a nearly 5% increase. As for profitability, non-GAAP (adjusted) net income grew 9% to over $400 million. Both that figure and the revenue line were slightly higher than the consensus analyst estimates. Fiscal 2026 might see lower growth, as Darden is guiding for a 7% to 8% rise in total sales for the year, on a foundation of 2% to 3.5% same-restaurant sales improvement. Net income should land at $10.50 to $10.70 per share, which is just short -- although not worryingly so -- of the average pundit estimate of $10.75. All this tells me that Darden is well positioned now, and I'd fully expect the company to at least come close to its growth targets. Continued profitability will provide money for more dividend raises and new stock buyback initiatives. As such, this stock feels like a solid investment to me. Darden is to hand out its raised dividend on Aug. 1 to stockholders of record as of July 10. It would yield almost 2.8% at the most recent closing price. Should you invest $1,000 in Target right now? Before you buy stock in Target, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Target wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $704,676!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $950,198!* Now, it's worth noting Stock Advisor 's total average return is1,048% — a market-crushing outperformance compared to175%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 23, 2025
Yahoo
17 hours ago
- Business
- Yahoo
Are You Missing Out on These 2 Dividend Raises From Famous Companies?
Both a very familiar retailer and a high-profile restaurant chain operator are cranking their distributions higher. Opportunistic income investors have time to take advantage of both. 10 stocks we like better than Target › Early summer isn't typically a hot period for dividend raises, and this year's version is no exception. Lately, income investors have had to be satisfied collecting payouts that were fixed several quarters -- or even years -- ago. Over the past few days, there emerged two major exceptions to this trend -- monster retailer Target (NYSE: TGT) and Darden Restaurants (NYSE: DRI), owner and operator of well-known dining chains such as Olive Garden, Ruth's Chris Steak House, and The Capital Grille. Here's a little more about both payout pumps. Of the two dividend raises, Target's was the more predictable. That's because the company is a Dividend King, meaning it's one of the very select group of S&P 500 component stocks that has upped its payout at least once annually for a minimum of 50 years running. In mid-June, the company extended this streak to 54 years with a nearly 2% bump in its quarterly payout to $1.14 per share. This particular dividend raise might be more necessary than previous lifts. A once-popular stock, Target has fallen out of favor, on the back of recent drops in certain fundamentals and other factors such as its poorly received retreat from diversity, equity, and inclusion (DEI) strategies. The uncertain future of President Trump's tariffs isn't helping either. Target's latest quarterly earnings release didn't exactly inspire confidence in the market. First-quarter net sales fell by 3% year over year to a little under $24 billion on comparable sales that dipped nearly 4%, rare declines for a company that typically improves those metrics. Non-GAAP (generally accepted accounting principles) adjusted net earnings also headed south, falling a steep 36% to $1.30 per share. To right the ship, management has created what's essentially a task force with its so-called "enterprise acceleration office." This unit is responsible for slimming the company's operations and making them more efficient, hence better positioned for (hopefully) a return to growth. I'd give Target a better-than-average chance of this initiative succeeding. In its long life, it's gotten past many challenges, and besides, it's actually doing quite well in certain corners of its business. For example, there's online comparable sales, which even in this Age of Digital are continuing to grow at admirable rates -- nearly 5% in quarter one. Meanwhile, in terms of valuations, the stock is now cheap, with a PEG ratio barely treading water at a bit over 1. This makes me feel Target is a potentially strong recovery story trading at a generous discount now. The company's dividend raise takes effect in a few months; the new payout will be dispensed on Sept. 1 to investors of record as of Aug. 13. At the current share price, its yield would be a very appealing 4.7%. Elsewhere in the consumer goods sector, Darden also enacted a dividend raise in June. In contrast to Target, the hike was fairly generous, at 7% over its predecessor. The new quarterly dividend is $1.50 per share. Darden isn't a Dividend King like Target, but it's been a regular payer since 1995 and a frequent raiser. It did cut its payout during the pandemic -- hardly a shocking move, as the restaurant industry was badly affected by the near-disappearance of in-person dining. Since then, though, Darden has come roaring back, with the company paying out more than it did in the pre-COVID days. Another appealing draw of being a Darden shareholder is the company's frequent stock buybacks. Also in June, its board of directors authorized a new repurchase initiative of up to $1 billion for its common stock. The company is rarely shy to spend its capital this way, as in its latest reported quarter it expended $51 million on buybacks. Speaking of that period -- Darden's fiscal fourth quarter of 2025 -- total sales rose by 11% year over year (although this was skewed by the addition of the 103-restaurant strong Chuy's Tex Mex chain, a 2024 acquisition). The more revealing same-restaurant sales metric was up comfortingly, though, with a nearly 5% increase. As for profitability, non-GAAP (adjusted) net income grew 9% to over $400 million. Both that figure and the revenue line were slightly higher than the consensus analyst estimates. Fiscal 2026 might see lower growth, as Darden is guiding for a 7% to 8% rise in total sales for the year, on a foundation of 2% to 3.5% same-restaurant sales improvement. Net income should land at $10.50 to $10.70 per share, which is just short -- although not worryingly so -- of the average pundit estimate of $10.75. All this tells me that Darden is well positioned now, and I'd fully expect the company to at least come close to its growth targets. Continued profitability will provide money for more dividend raises and new stock buyback initiatives. As such, this stock feels like a solid investment to me. Darden is to hand out its raised dividend on Aug. 1 to stockholders of record as of July 10. It would yield almost 2.8% at the most recent closing price. Before you buy stock in Target, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Target wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $704,676!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $950,198!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 175% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Target. The Motley Fool has a disclosure policy. Are You Missing Out on These 2 Dividend Raises From Famous Companies? was originally published by The Motley Fool 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
Yahoo
2 days ago
- Business
- Yahoo
Federal Realty's Dividend King Status: Still a Reason to Invest?
Federal Realty Investment Trust (NYSE:FRT) is one of the Best REIT Dividend Stocks to Buy in 2025. A wide-angle view of an urban skyline, representing the company's investments in urban neighborhoods. Federal Realty Investment Trust (NYSE:FRT) owns a smaller portfolio of about 100 properties, but they're located in high-income, densely populated areas, making them highly desirable. The REIT stands out for its unmatched dividend track record, having raised its payout for 57 straight years, which is the longest streak of any REIT and earns it Dividend King status. Occupancy levels, which dipped during the pandemic, have since recovered. As of Q1 2025, occupancy reached 93.6%, with expectations of hitting 95% by year-end. Federal Realty Investment Trust (NYSE:FRT) actively manages its portfolio, regularly buying, upgrading, and selling properties to boost value. Improvements range from minor updates to full redevelopments. This ongoing strategy keeps the portfolio high quality, based on the belief that well-located, well-maintained properties attract strong tenants and long-term value. Federal Realty Investment Trust (NYSE:FRT) offers a quarterly dividend of $1.10 per share and has a dividend yield of 4.57%, as of June 23. While we acknowledge the potential of FRT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure. None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
Why I Can't Stop Buying These 2 Top High-Yield Dividend Stocks
PepsiCo has increased its dividend for 53 straight years. Vici Properties has grown its payout at an above-average rate since its formation. These companies can provide me with high-yielding and steadily rising passive income streams. 10 stocks we like better than PepsiCo › I'm on a mission to become financially independent through passive income. My strategy is to continually invest in income-generating assets to steadily grow my passive income to the point where it can cover my basic living expenses. Investing in high-yielding dividend stocks is a core aspect of my strategy. I buy more shares of top high-yielding dividend stocks any chance I get. Two high-yield dividend stocks that I just can't stop buying this year are PepsiCo (NASDAQ: PEP) and Vici Properties (NYSE: VICI). Here's why I think they are two of the top options to buy for passive income these days. PepsiCo's dividend yield is approaching 4.5% because of a big slump in its stock price this year. That's a very attractive level for the food and beverage giant. It's about three times higher than the S&P 500 at less than 1.5% and its highest level this decade. The company has a sparkling record of paying dividends. PepsiCo recently raised its dividend by another 5%, extending its growth streak to 53 straight years. That qualifies it as an elite Dividend King. The company has grown its payout at an impressive 7.5% compound annual rate over the past 15 years. PepsiCo's leading portfolio of consumer brands generates lots of cash flow. That gives it the money to invest in growing its business and pay an attractive and rising dividend. The company is investing heavily in things such as product innovation, manufacturing capacity expansions, and productivity enhancements to organically grow its revenue and margin. PepsiCo expects these investments will increase its revenue at a 4%-6% annual rate while boosting its earnings per share at a high-single-digit rate. The company also has a strong balance sheet, which gives it the flexibility to make acquisitions as opportunities arise. It has made several deals in recent years to accelerate the transformation of its portfolio to healthier options, including healthier-soda maker Poppi, fresh dips and spreads brands Sabra and Obela, and authentic, better-for-you food product maker Siete. These acquisitions will enhance its long-term growth, putting PepsiCo in a stronger position to continue increasing its high-yielding dividend. Vici Properties' dividend yield is over 5%. The real estate investment trust (REIT) backs that payout with a steady and growing rental income stream. The REIT owns one of the largest portfolios of market-leading gaming, hospitality, entertainment, wellness, and leisure destinations. It owns 54 gaming properties, including Caesars Palace Las Vegas, MGM Grand, and the Venetian Resort Las Vegas. Vici also owns 39 other experiential properties and has invested in several real estate-backed loans. Vici leases its owned properties to tenants that operate the facilities under long-term triple net leases (NNN). An increasing percentage of its leases escalate rents at rates tied to inflation. Forty-two percent of them do this year, and that number will rise to 90% by 2035. As a result, Vici collects very stable and steadily increasing rental income. The REIT pays out about 75% of its cash flow in dividends, retaining the rest to invest in new income-generating experiential real estate. Vici Properties also has an investment-grade balance sheet, giving it additional financial flexibility to make new investments. The company's most recent investments were a $300 million mezzanine loan to support the development of One Beverly Hill, a landmark luxury mixed-use development, and up to $510 million of development funds to build the North Fork Mono Casino & Resort. Vici Properties' growing portfolio enables the REIT to steadily increase its high-yielding dividend. It has raised its payment in all seven years since its formation. It has grown its payout at a 7.4% compound annual rate, which leads its NNN REIT peers with a 2.3% compound average dividend growth rate during that period. PepsiCo and Vici Properties are great stocks to buy for passive income. They pay high-yielding dividends backed by strong financial profiles. They also have excellent records of growing their dividends, which should continue. That's why I recently bought more shares of this duo and probably won't stop adding to my positions anytime soon. Before you buy stock in PepsiCo, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and PepsiCo wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $689,813!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $906,556!* Now, it's worth noting Stock Advisor's total average return is 809% — a market-crushing outperformance compared to 175% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Matt DiLallo has positions in PepsiCo and Vici Properties. The Motley Fool recommends Vici Properties. The Motley Fool has a disclosure policy. Why I Can't Stop Buying These 2 Top High-Yield Dividend Stocks was originally published by The Motley Fool
Yahoo
21-06-2025
- Business
- Yahoo
This Dividend King Stands Out as a Long-Term Favorite
PepsiCo, Inc. (NASDAQ:PEP) is one of the best dividend stocks for a bear market. In uncertain times, investing in a dividend-paying stock that has seen a significant drop in price can be a smart move, provided the company's long-term fundamentals remain strong. A close up of a glass of a refreshing carbonated beverage illustrating the company's different beverages. PepsiCo, Inc. (NASDAQ:PEP) fits that description well. Despite a nearly 14% decline in its share price since the beginning of 2025, the company maintains its reputation as a Dividend King, with 53 consecutive years of dividend increases. The latest boost, which was a 5% rise, was announced alongside its Q4 2024 earnings. Such a consistent track record reflects a solid business strategy that performs well regardless of market conditions. PepsiCo, Inc. (NASDAQ:PEP) dividend history speaks to its disciplined management and operational strength. However, recent challenges have emerged. In April, the company lowered its annual profit outlook, citing rising production costs and weaker consumer spending, pressures linked to economic uncertainty stemming from wide-reaching tariffs introduced by President Donald Trump. Even so, analysts view these issues as temporary. Once the broader economic environment stabilizes, demand is expected to recover. PepsiCo, Inc. (NASDAQ:PEP) currently offers a quarterly dividend of $1.4225 per share and has a dividend yield of 4.4%, as of June 17. While we acknowledge the potential of PEP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure. None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data