15 Strong Stocks With Rising Dividends Despite the Recession

MetLife Pays Nearly 5% Despite Low Interest Rates

MetLife Inc. (NYSE: MET) announced on April 28 that it was raising its dividend to $0.46 per common share from a prior $0.44 payout, a hike of 4.5%. The insurance giant’s shares have recovered handily from the March lows, but the insurance stocks are still way down from their highs due to the low interest rate environment and fears of underlying bond defaults. MetLife shares were still down 34% from their peak when the dividend hike was announced. Its new yield will be about 4.7% after the dividend hike reaction.

Raytheon’s Strong Post-Merger Defense Leader

Raytheon Technologies Corp. (NYSE: RTX) announced on April 27, that it was declaring a $0.475 dividend on its common stock. After adjusting for the 2.33 factor in the post-merger situation with United Technologies, this was confirmed as an effective dividend hike after a call into the company. Raytheon’s dividend yield is now 2.8%, based on the current share price.

No Kiddie Pool for Growth

Pool Corp. (NASDAQ: POOL) announced on April 23 that its board had approved a 5% hike on the quarterly cash dividend to $0.58 per share. This is the largest wholesale distributor of swimming pool and related products. It still only represents a 1% dividend yield, as the stock was recently just trading 3% or so under its 52-week high. It is also up about 250% in the past five years alone, and it is about 1,500% or so higher since the 2009 selling zenith of the Great Recession.

Nasdaq Loves the Market Volatility

Nasdaq Inc. (NASDAQ: NDAQ) announced on April 22 that it was raising its common share dividend by 4% to $0.49 per share. It looks like higher trading volumes are helping to bolster the exchanges. Nasdaq’s $1.96 annualized payout is roughly a 1.75% dividend yield, and it is not quite 40% of its trailing normalized earnings.

The Other NextEra Dividend

NextEra Energy Partners L.P. (NYSE: NEP) announced on April 22 that it raised its quarterly distribution to $0.555 from $0.535 per unit. This generates a yield equivalent of 4.45% for the manager of contracted clean energy and renewable energy projects, along with a natural gas pipeline.

The partnership had announced back in January that it was looking to raise its distribution by 12% to 15% annually through at least 2024, but with April earnings it signaled it could meet long-term, distribution goals without acquisitions until 2022.

Kinder Morgan’s Dividend Hike Was Shy

Kinder Morgan Inc. (NYSE: KMI) announced on April 22 that it was committed to raising its dividend, although it was less than what had been previously communicated to shareholders. The new quarterly cash dividend of $0.2625 per share comes to a payout of $1.05 per share annualized, and it was a 5% dividend hike.

Shareholders previously expected the dividend to go up to $1.25 per share annually, but the company signaled that it was prudent to make less of an increase, considering the state of the energy business and the economy. Kinder Morgan also had posted a quarterly net loss after $950 million in noncash impairments of assets and goodwill. Kinder Morgan’s current yield based on the new payout is 6.9%.

Xilinx Hiked Its Dividend Despite Weak Trends

Xilinx Inc. (NASDAQ: XLNX) announced on April 22, along with earnings that were affected by the coronavirus, that its quarterly cash dividend was being raised by 2.7% to $0.38 per common share. The semiconductor maker also indicated that this reflects its commitment to growing the dividend. That said, Xilinx already had lagged its peer chip stocks ahead of the recession. Its current dividend yield is 1.75% based on the current share prices.