These three stocks, which are at or near the top of their respective industries, have only increased dividends by double-digit percentages. Below, I’ll explain how much these companies are paying out to shareholders now. I will also touch on important share buyback news. Also, I will provide an update on key proposed legislation that investors should be aware of regarding one of these companies.
PACCAR: +4% yield makes it one of the top dogs for industrial dividends
PACCAR dividend payment
- Dividend yield
- 1.15%
- Annual dividend
- $1.20
- Annual 3-year dividend growth
- 6.82%
- Dividend payout ratio
- 13.41%
- Next dividend payment
- January 8
PACCAR NASDAQ: PCARcommercial truck manufacturers, has increased its dividend by 10%. A new $0.33 per share dividend will be payable on March 5 to shareholders of record as of February 12. The company has a history of rewarding shareholders with significant dividend payments relative to its earnings. Its average quarterly payout ratio over the last five years is around 51%. The new dividend payment gives the company an implied dividend yield of 4.1% in 2025. The implied dividend yield measure assumes that the dividend amount does not change throughout the year.
Despite its small quarterly dividend, the company reaches this figure because it often declares a large additional dividend at the end of each year. In 2024, the additional payment was $3.00 per share. In 2023, it was even higher than $3.20 per share. This 4.1% yield is higher than the 1.2% figure offered by SPDR S&P 500 ETF Trust NYSEARCA: Spy. The company’s implied yield is also in the top six among large-cap US and Canadian industrial stocks.
Eli Lilly: Pharma giant raises dividend by double-digit percentage and announces buyback
Eli Lilly and Company Dividend Payments
- Dividend yield
- 0.77%
- Annual dividend
- $6.00
- Annual 3-year dividend growth
- 15.15%
- Dividend payout ratio
- 64.86%
- Next dividend payment
- March 10
Eli Lilly NYSE: LLYThe biggest in the world Pharmaceutical stocks By market capitalization, Just announced a big increase In its quarterly dividend. The increase comes to 15%, marking the seventh consecutive year the company has increased its dividend by this figure. On March 10, 2025, shareholders of record after February 14 will receive a $1.50 per share payment.
In addition to this dividend increase, the company also announced that it has authorized a $15 billion share repurchase program. Based on a market capitalization of $691 billion as of the end of December 20, this buyback program represents 2% of the company’s value. Although relatively small, the buyback program is three times larger than its predecessor.
Based on a December 20 closing price of just under $768, the company’s implied dividend yield for 2025 is about 0.8%. Although this figure is small, it actually outperforms most of its industry. Of the 43 large-cap pharma and biotech stocks in the US, Canada and Europe, Lilly’s dividend yield exceeds 53% of them. Of these 43 stocks, 21 do not pay dividends.
MasterCard: Good news on dividends, buybacks, and credit card regulation
MasterCard Dividend Payments
- Dividend yield
- 0.50%
- Annual dividend
- $2.64
- Track record of dividend growth
- 13 years
- Annual 3-year dividend growth
- 12.53%
- Dividend payout ratio
- 19.97%
- Next dividend payment
- 7 February
Payment network company MasterCard NYSE: MA has increased its quarterly dividend by 15%. the company Will pay a new dividend of $0.76 per share January 9 to shareholders of record on February 7. This gives the company an implied dividend yield of just under 0.6% for 2025.
Like Lilly, MasterCard authorized a meaningful share buyback program. The company now has $15.9 billion in share buyback authority. That figure combines the new $12 billion number with the $3.9 billion still left over from its previous buyback program. Combined, these rights accounted for more than 3% of the company’s $485 billion market capitalization as of the end of Dec. 20.
In other news surrounding MasterCard, some fears about the rule have been allayed, at least for now. In November, from executive and consultant visa NYSE: V And MasterCard participated in a Senate Judiciary Committee hearing. The point was to discuss the Credit Card Competition Act (CCCA). Some lawmakers and outside analysts argue that Visa and MasterCard have an unfair monopoly on the credit card market. They say the lack of competition means merchants must pay exorbitant swipe fees to process credit card payments.
The act would require banks to offer at least one more payment network to compete with Visa and MasterCard. This will likely reduce the amount of payments Visa and MasterCard receive, which will negatively impact revenue. However, the bill has not yet gone to a vote. With two weeks until the new Congress begins its term and other important issues on the table, that is highly unlikely. Still, the CCCA has support from both sides of the aisle, making it a position to watch. Lawmakers may reintroduce the bill next year.
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