As Earnings Season Winds Down, These S&P 500 Companies Have Raised Their Dividends

Stocks have had a turbulent start to the year, but there is some positive news for income-focused investors—many companies continue to raise their dividends.

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The S&P 500 declined by 1.4% in February, weighed down by concerns over inflation, upcoming tariffs from former President Donald Trump, and rising geopolitical tensions. On Friday, the index briefly dipped into negative territory for 2025.

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Despite the market’s challenges, corporate earnings reports have offered some relief. As of Friday, approximately 97% of S&P 500 companies had released their fourth-quarter results, with more than 75% surpassing analysts’ expectations, according to FactSet.

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For income investors, several of these companies brought good news. Data from JPMorgan shows that 20 S&P 500 firms announced dividend increases during the week ending February 25, with no reported cuts or suspensions.

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Among the high-profile companies raising dividends is Coca-Cola, which increased its payout by approximately 5.2% to $0.51 per share.

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During the company’s February 11 earnings call, Chief Financial Officer John Murphy emphasized Coca-Cola’s long-standing commitment to increasing dividends. "We have an unwavering priority to grow our dividend, as we’ve done for 62 consecutive years," he said. Murphy also highlighted that Coca-Cola’s dividend is backed by strong long-term free cash flow, with dividend payments representing 73% of adjusted free cash flow in 2024.

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Other major companies announcing dividend hikes included Occidental Petroleum, Home Depot, and General Motors.

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By February 18, over 80 S&P 500 companies had raised their dividends, according to S&P Dow Jones Indices. Among them was semiconductor manufacturer Analog Devices, which increased its quarterly dividend by 8% to $0.99 per share.

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Despite broader weakness in the technology sector—down 6% year to date—Analog Devices’ stock has risen more than 6% in 2025. This latest increase marks the company’s 21st consecutive year of dividend growth, and the stock currently offers a 1.7% dividend yield.

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Benchmark Equity Research recently initiated coverage on Analog Devices with a buy rating and a $245 price target, suggesting a potential upside of over 9% from Thursday’s closing price. Analyst David Williams praised the company’s position in the high-performance analog semiconductor market and its ability to drive sustained growth and shareholder returns.

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Williams also highlighted Analog Devices' robust cash flow model and its commitment to returning 100% of free cash flow to shareholders. Out of 32 analysts covering the stock, 20 rate it a buy or strong buy, with consensus forecasts predicting an upside of 13%, according to LSEG.

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Another significant dividend increase came from Walmart, which raised its annual payout by 13% to $0.94 per share, marking its 52nd consecutive year of dividend growth.

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Although Walmart posted better-than-expected results for the fiscal fourth quarter, the company warned that profit growth could slow in the near term. This cautious outlook led to a 6.5% decline in the stock following its earnings release.

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On the earnings call, Chief Financial Officer John David Rainey expressed confidence in the company’s financial health. "Cash flow remained strong. And as we announced this morning, we’re pleased to raise the dividend by 13% this year, the largest increase in over a decade, reinforcing our commitment to strong cash returns to shareholders," he said.

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Despite the post-earnings slide, analysts remain optimistic about Walmart’s prospects. JPMorgan’s Christopher Horvers described the dip as a "near-term buying opportunity" and maintained his overweight rating, citing the company’s strong U.S. same-store sales growth and its continued market share gains.

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Among the 43 analysts covering Walmart, 41 rate it a buy or strong buy, with consensus price targets indicating a 12% upside. Walmart shares are up more than 8% this year and currently offer a 1% dividend yield.

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For investors interested in dividend-paying stocks, it is essential to evaluate a company’s balance sheet, free cash flow, and the consistency of its earnings. Monitoring the dividend payout ratio is also crucial, as a high ratio may indicate that the company is distributing a significant portion of its earnings rather than reinvesting in future growth.

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Additionally, while high dividend yields can be attractive, they may also signal that a company’s share price is declining.

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For those who prefer a diversified approach, the S&P 500 Dividend Aristocrats ETF (NOBL) is an option worth considering. This ETF includes companies with a long history of increasing dividends, such as Emerson Electric, Clorox, and Walmart, providing investors with exposure to a broad range of established dividend payers.

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Despite market volatility, the wave of dividend increases offers a promising opportunity for income investors seeking stable returns in an uncertain environment.

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