Discover which top companies announced significant dividend increases last month and what it means for the market.
Dividends
February 28, 2025
Table of Contents
A dividend increase occurs when a company raises the amount of money it pays to shareholders per share of stock. Dividends are a portion of a company’s earnings distributed to shareholders as a reward for their investment. Companies typically issue dividends on a regular basis—quarterly, semi-annually, or annually—and occasionally they decide to increase the payout. Dividend increases are typically, but not always, announced during earnings reports or within a company’s 10Q filing.
Companies usually raise dividends to signal financial strength, consistent profitability, and confidence in future earnings. This often reflects a stable or growing cash flow, allowing them to reward shareholders with a higher yield on their investment. Dividend increases can also attract new investors, as rising dividends may indicate a well-managed company with a solid business model.
In accounting terms, an increase in dividends is recorded as a debit to retained earnings, reflecting the reduction in the company's retained profits allocated to shareholders. In short, increases in dividends accounts are debits; decreases are credits.
News outlets like CNBC or MarketWatch will make note of the dividend increases for large companies during earnings announcements, but dividend increases by midcap stocks and smallcap stocks are largely underreported. Tools like LevelFields AI can be extremely helpful for locating dividend increases, such as those reported by LevelFields below.
Hexcel Corporation is a global leader in advanced composites technology, primarily serving the aerospace, defense, and manufacturing industries. The company is known for its strong focus on lightweight materials and has recently expanded its range of products to include new composite technologies for the automotive sector. Hexcel Corporation has increased its quarterly dividend by 13.3% to $0.17 per share.
Dividend Yield: 1.09%
Truxton Corporation is a financial institution based in Nashville, Tennessee, offering private banking and wealth management services. They have recently been recognized for their tailored wealth management solutions that cater to high-net-worth individuals and families. Truxton Corporation has raised its dividend by 16% to $0.50 per share.
Dividend Yield: 2.46%
Esquire Financial Holdings is a financial services company specializing in banking and legal-related financial products. Recently, they have launched a new program designed to streamline financial transactions for law firms and their clients. Esquire Financial Holdings has increased its dividend rate by 17%.
Dividend Yield: 0.91%
American Express is a globally integrated payments company, providing customers with access to products, insights, and experiences that enrich lives and build business success. The company recently introduced a new business class benefits program aimed at providing small businesses with enhanced travel perks and office supplies discounts. American Express has increased its quarterly dividend by 17% to $0.82 per share.
Dividend Yield: 0.95%
MTY Food Group Inc. is a Canadian franchisor and operator of numerous quick-service restaurants, including brands like Thai Express and Tutti Frutti. They have recently expanded their portfolio by acquiring a health-focused restaurant chain, adding to their diverse offerings. MTY Food Group Inc. has announced an 18% increase in its dividend rate.
Dividend Yield: 2.71%
CuriosityStream Inc. is a global independent factual media company that offers over 2,000 science, history, tech, and nature documentaries worldwide. They recently launched a new series of documentaries focused on technological innovations and their impact on society. CuriosityStream Inc. has increased its quarterly dividend by 20% to $0.03 per share.
Dividend Yield: 4.26%
Applied Industrial Technologies is a leading industrial distributor in North America, known for providing bearings, power transmission products, hydraulic components, and safety equipment. The company recently launched an innovative inventory management solution that leverages AI to optimize supply chain efficiencies. Applied Industrial Technologies has increased its quarterly dividend by 24% to $0.46 per share.
Dividend Yield: 0.70%
Community Heritage Financial, Inc. is a Maryland-based holding company for Community Heritage Bank, which offers traditional banking services focused on personal customer relationships and community involvement. Their recent launch of a digital banking platform marks a significant enhancement in their service offerings. Community Heritage Financial, Inc. has raised its quarterly dividend by 33% to $0.08 per share.
Dividend Yield: 1.07%
Sign up for LevelFields for the remaining companies with the largest dividend increases and get alerts every time a company does a massive dividend increase.
For investors, a dividend increase often suggests that the company is financially sound and committed to returning value to its shareholders. It can also enhance the total return on investment, providing both capital appreciation (if the stock price rises) and growing income over time. Dividend growth investors, in particular, seek out companies that regularly increase their dividends as a sign of long-term stability and growth potential.
While not guaranteed, a dividend increase can lead to positive market sentiment. Investors may view the increase as a sign of company strength, driving demand for the stock and potentially boosting its price. Over the long term, consistently rising dividends can contribute to higher overall returns and attract income-focused investors.
When it comes to finding companies that consistently raise their dividends, traditional research methods can be time-consuming and frustrating. That’s where LevelFields shines. With our powerful event-driven intelligence platform, you can instantly see which companies are increasing their payouts—no more endless scanning of financial news or piecing together scattered data.
Why LevelFields Stands Out for Dividend Tracking
If you’re serious about building a portfolio that capitalizes on dependable, growing income streams, LevelFields is the tool you’ve been waiting for. Start using it today to take the guesswork out of dividend investing and focus on what really matters: making informed decisions and growing your returns.
When a company increases dividends, it’s raising the amount of money it pays out to shareholders per share. This can happen when the company’s profits and cash flow are strong, enabling it to reward investors with a larger payout. Dividend increases are often seen as a sign of a company’s financial health and long-term stability.
To generate $1,000 a month (or $12,000 annually) in dividends, you’ll need to consider the dividend yield of your portfolio. For example, if your portfolio’s average yield is 4%, you would need to invest $300,000. At a 5% yield, you’d need $240,000. The higher the yield, the less capital required, but higher yields often come with more risk.
A rising dividend yield can be positive, as it shows leadership is so optimistic about cash flows they can literally give away money. However, a yield increase due to a falling stock price can be a bad sign. Looking at the reason behind the higher yield is critical as a yield increase due to financial distress is not.
You buy a stock for $100/share. That company pays you a dividend yield of 5%. This means every year the company will pay you $5 just to own the stock, in 4 quarterly payments. If you bought 1,000 shares for $100,000, you’d be earnings $5,000 per year in passive income.
Earning $5,000 a month in dividends (or $60,000 annually) depends on your portfolio’s dividend yield. At a 4% yield, you’d need $1.5 million invested. At a 5% yield, you’d need $1.2 million. As with any income strategy, diversification and stability of the underlying companies are key.
Dividends aren’t exactly “free money.” They represent the return on your investment in the company based on your ownership of that company’s profits.
High-yielding stocks can be found in industries like real estate investment trusts (REITs), utilities, and energy. However, the highest-yielding stocks are not always the best choice as abnormally high yields may signal underlying issues that have caused the share price to drop substantially. In these cases, the company is likely to cut the dividend yield to save money.
In many countries, dividends are considered taxable income. The tax rate depends on factors such as the dividend type (qualified or ordinary) and your tax bracket. In some cases, tax-advantaged accounts like IRAs or 401(k)s can help defer or eliminate dividend taxes.What Is the Downside to Dividend Stocks?Dividend-paying stocks may offer steady income, but they aren’t risk-free. Companies can reduce or eliminate dividends during tough economic times, causing stock prices to fall. Additionally, focusing only on dividends may limit exposure to high-growth companies that reinvest earnings rather than paying them out.
The amount of tax-free dividend income depends on local tax laws. In some jurisdictions, qualified dividends or dividends held within tax-advantaged accounts may not be taxed at all. In other cases, dividends up to a certain threshold are taxed at a reduced rate or not taxed.Are Dividends Paid Out Monthly?While many companies pay dividends quarterly, some pay monthly. Monthly dividend stocks can be attractive for investors seeking consistent cash flow, but the frequency of payment doesn’t necessarily indicate the quality of the dividend. Some ETFs, like BITO, pay a monthly dividend.
To minimize or avoid taxes on dividends, you might consider holding dividend-paying stocks in tax-advantaged accounts (like IRAs in the U.S.), investing in tax-free municipal bond funds, or focusing on qualified dividends, which often have lower tax rates than ordinary income.
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