Microsoft just raised its dividend. who is next?

The stock market suffered a setback on Tuesday, giving up gains from Monday’s session amid renewed concerns about what the Federal Reserve might do when it concludes its two-day monetary policy meeting on Wednesday. losses Dow Jones Industrial Average (^ DJI 0.57%)And the Standard & Poor’s 500 (^ GSPC 0.61%)And the Nasdaq Composite (^ IXIC 0.48%) At roughly 1%, small-cap stocks took relatively bigger hits than their large-cap peers.

index

Change in daily percentage

Change daily points

daw

(1.01%)

(313)

Standard & Poor’s 500

(1.13%)

(44)

Nasdaq

(0.95%)

(110)

Data source: Yahoo! finance.

As the stock market becomes more volatile, investors are increasingly appreciating companies that reward them with increased and predictable streams of dividend income. today, Microsoft (MSFT 1.11%) It announced that it would increase its quarterly payments to shareholders. The tech giant is paying a relatively modest return, but some other solid dividend payouts are also in line with paying more to its investors in the near future. Read on to learn more about Microsoft as well as three other companies that could offer similar bonuses to contributors soon.

Microsoft payout higher

Microsoft stock didn’t do all that well on Tuesday, losing nearly 1% in the normal trading session. However, long-term investors will get a little more from the software giant in the form of higher dividend checks.

Microsoft’s Board of Directors declared a quarterly dividend of $0.68 per share. Shareholders registered as of November 17 will receive a higher payment, which will appear in investors’ accounts on December 8. The dividend is $0.06 higher than the previous quarterly dividend of $0.62 per share.

With a dividend yield of only about 1%, most investors don’t think much of Microsoft as a dividend stock. However, the company has developed a solid track record of increasing dividends over time, with the latest move making 2022 the 20th consecutive year that Microsoft has paid more annual dividends than the previous year.

These could be the following companies

Many companies have longer track records than Microsoft in paying higher profits. For example, the following three companies typically report increases in their earnings at this time of year:

  • Emerson Electric (EMR 0.61%) It has a 65-year track record of paying higher dividends to its shareholders. The company’s latest increase came last November when it announced a 2% increase to $0.515 per share on a quarterly basis.
  • fast food giant McDonald’s (MCD 0.24%) It made an even bigger payout late last year, increasing its quarterly dividend by $0.09 to $1.38 per share. The Golden Arches chain has 47 years of paying higher dividends to long-term shareholders.
  • ExxonMobil (XOM 0.38%) It has a 40-year dividend increasing streak on the streak as it enters the final months of the year. The most recent payment last year added just a penny to the quarterly payments, with shareholders receiving $0.88 per share each quarter.

There is no guarantee that these companies will continue to increase profits. Each year, there are often at least a few long-term dividend stocks that have to make payment cutbacks or even temporarily put their payments on hold.

However, all three of these preferred stocks have strong businesses to build on, and have the potential to weather tough economic times in the past and still give their shareholders higher payouts over time. At a time when many investors are increasingly uncomfortable with how low their stock prices are, the added confidence of knowing they can receive a quarterly check from these companies is especially valuable.