2 shares with fresh, double-sided dividend growth – Motley Fool
One of the best facets of quality dividend stocks is not their regular payout or even their dividend history, but their dividend inventory is increasing. Companies that regularly increase their yields give investors an increasing flow of income and confidence in a likelihood of more payouts in the future.
But which companies pay out meaningful and growing dividends that are likely to continue to grow over the next few years? Two stocks that fit these properties are Home Depot (NYSE: HD) and Wendy s (NASDAQ: WEN)
Here you at each of these exchange stores.
Image source: Getty Images.
Home Depot
In addition to the quarterly result, February 26, Home Depot announced that it increased the dividend by 32%. This is a significant acceleration over the company's 15.8% increase in dividends last year. In fact, it's even higher than the company's average annual dividend growth of 25% over the past five years.
The company's new quarterly dividend is $ 1.36, up from $ 1.03 earlier and amounted to $ 5.44 annually. This results in a dividend yield of 3%.
The 32% expansion marks the company's tenth straight year of increases. The meaningful increase is "a proof of our commitment to creating value for our shareholders and a demonstration of confidence in the business ahead," said Home Depot CEO Craig Menear in the company's fourth-quarter redemption.
The company has plenty of room for further growth in the dividend. Over the past 12 months, only $ 4.6 billion of Home Depot was paid $ 10.1 billion in free cash flow in dividends.
Wendys
Wendys announced an 18% increase in quarterly dividends on February 13. This gives the company's quarterly dividend of $ 0.10, up from 0.085 cents. Wendy's new dividend reaches $ 0.40 annually, giving the share a dividend yield of 2.3%.
"Repayment to shareholders remains an important priority for us," said Wendy's CEO Todd Penegor in a press release when the Company announced its higher dividend. "This is the seventh consecutive year that we have increased our yield, which is proof of the strong cash flow generation from our robust and predictable business model."
This is a slight deceleration from a 21% increase last year, but it still represents a strong, double-digit percentage increase.
Wendy has, like Home Depot, more room for dividend growth, when it paid only $ 81 million in its $ 154 million over 12 months without cash flow. [19659017] fool.insertScript (& # 39; facebook-jssdk & # 39 ;, // connect.facebook.net/en_US/sdk.js#xfbml=1&version=v2.3' ;, true);
fool.insertScript (& # 39; twitter wjs & # 39 ;, & # 39; // platform.twitter.com/widgets.js' ;, true);
