4 Dividends That Have Not Been Raised in Years and Are Still Worth Owning

Dividend-growth screens often flag a flat payout as a warning. That reaction can cost income investors money. A cut means the cash ran short. A freeze supported by earnings and free cash flow means management is sending money to debt paydown, a capital program or a cyclical recovery while the quarterly check still comes in.

One stock below has paid the same $0.40 per share every quarter since its 2019-03-07 ex-dividend date. None of these four companies has raised its dividend in years, and each still covers its payout. For each one, we also lay out what would turn the freeze into a cut (and if you want the opposite exercise, the red flags that say a big yield really is about to be cut, we put the seven of them in a free report here: Dividend Traps).

AT&T: Fiber Cash Flow Keeps a Frozen Payout Well Fed

AT&T (NYSE:T | T Price Prediction) yields 4.55% at a share price of $24.32. The quarterly dividend has held at $0.2775 since the 2022-04-13 ex-dividend date. That level came after AT&T reduced the payout from $0.52 around the WarnerMedia spin-off, and it has stayed flat ever since.

The freeze funds for a heavy build-out. AT&T plans $23 to $24 billion of capital investment this year and is aiming for 60M+ fiber locations by 2030. The EchoStar (NASDAQ:SATS) spectrum deal is plans to lift net leverage from 2.68 times to the 3.2 times range, with a return to about 2.5 times within around three years.

Coverage read: The annual dividend of $1.11 stands against full-year adjusted EPS guidance of $2.25 to $2.35. Second-quarter free cash flow came in at $4.7 billion, above management’s $4 to $4.5 billion guidance range. Full-year free cash flow guidance is $18B+. On the call, the CFO said buybacks plus dividends will total “approximately $18 billion this year, which is essentially 100% of our outlook for free cash flow.” Around $10 billion of that is buybacks, which management can scale back before it ever impacts the dividend.

Here is the bull case: the stock trades at a trailing P/E of 8 and a forward P/E of 10. Free cash flow guidance rises to $19B+ in 2027 and $21B+ in 2028. CEO John Stankey called the stock “incredibly undervalued” on the second-quarter call.

What turns the freeze into a cut: Free cash flow would have to fall well short of the $18B+ guide, and leverage would have to stay stuck near the 3.2 times range even after buybacks are cut back.

Risk: Legacy-segment EBITDA went down about 46% as AT&T phases out its copper network, and it is plans to turn negative after 2027.

Kraft Heinz: Ultra-High Yield With Free Cash Flow Doing the Heavy Lifting

Kraft Heinz (NASDAQ:KHC) is the only ultra-high-yield name here, yielding 7.04% at $22.21. It cut the quarterly dividend from $0.625 to $0.40 in 2019. It has paid exactly that amount on every listed dividend through the 2026-09-04 ex-date.

The freeze funds debt reduction and brand reinvestment. The company “paid down $1.9 billion of debt in the quarter” and phases out another $1 billion after the quarter closed, management said. It also added $100 million of brand investment, almost all of it in marketing.

Coverage read: The headline GAAP net loss of $5.46B came from a $7.4B non-cash impairment, so no cash left the building. Adjusted EPS guidance was raised to $2.03 to $2.09, against an annual dividend of $1.60. First-quarter free cash flow rose 58.9% to $766M, while cash dividends paid totaled $474M. Free cash flow conversion is plans at about 110% this year.

Here is the bull case: the stock trades at 0.783 times book value and a forward P/E of 11. Emerging Markets grew 10.4%. First-half market share loss narrowed to 30 bps, compared with 90 bps at the start of last year.

What turns the freeze into a cut: Quarterly free cash flow would need to slip below the around $474M quarterly dividend bill, with the new marketing spend failing to lift sales.

Risk: North America is weak. Segment adjusted operating income fell 15.8%, and the shares have lost 14.14% over the past month.

Dow: A Reset Dividend Now Backed by Self-Help Cash

Dow Inc. (NYSE:DOW) yields 5.07% at $27.98, which makes it a high-yield name. Dow paid $0.70 per quarter from 2019-05-30 through 2025-05-30 without a single raise. It then reduced the payout to $0.35 starting with the 2025-08-29 ex-date and has held it there through 2026-08-31. Dow has already been cut once. What matters for income investors now is whether the reset level holds.

The reason is the cyclical trough in commodity chemicals. Management has made debt reduction the first use of excess cash, ahead of buybacks.

Coverage read: Second-quarter free cash flow was $692M, compared with -$1.13B a year earlier. Dividends cost $253M in the quarter. Dow holds about $14 billion of available liquidity and has no substantial debt maturities until 2029. On the call, the CFO said the company will “continue to stay committed to” its investment-grade credit profile.

Bull case: Transform to Outperform is now plans to deliver more than $1.3B in self-help benefits this year. Management described those savings as largely independent of the economy. The shares are up 23.65% year to date and trade at a forward P/E of 14.

What turns the freeze into a cut: A return to negative free cash flow quarters like the year-ago -$1.13B, combined with self-help falling short, would put the investment-grade rating and the dividend in competition for the same cash.

Risk: Polyethylene pricing is volatile. Third-quarter EBITDA guidance of about $1.7 billion assumes a 10 cents per pound decline in integrated margins.

Hasbro: Magic Money Covers the Lowest Yield on the List

Hasbro (NASDAQ:HAS) yields 3.19% at $89.54. Its last raise took the quarterly dividend from $0.68 to $0.70 with the 2022-04-29 ex-date. Every payment since has been $0.70.

Hasbro has held the payout flat through a restructuring, debt paydown and a digital gaming push. Management plans digital investment to top out this year.

Coverage read: Trailing diluted EPS of $5.59 compares with an annual dividend of $2.80. First-half operating cash flow was $604 million. That funded $147 million of debt reduction and $239 million returned through dividends and buybacks. The buyback target also rose from $100 million to at least $200 million. CFO Gina Goetter said on the call: “we remain committed to our dividend.”

Bull case: Magic: The Gathering revenue reached $545.3M in the second quarter, up 32%. That was its first quarter above $500 million in more than 30 years. Full-year adjusted EBITDA guidance was raised to $1.45B to $1.50B, and the stock trades at a forward P/E of 13.

What turns the freeze into a cut: Magic growth would have to reverse during a weak holiday season for Consumer Products while digital spending is at its peak. Even then, the bigger buyback would likely be scaled back first.

Risk: Hasbro depends heavily on Magic. Wizards faces a tough fourth-quarter comparison, with about $40 million of revenue moving into next year’s first quarter.

Flat Payouts Still Backed by Cash Flow Heading Into the Next Earnings Reports

Each of the four companies has gone years without a raise, and all four still pay a dividend supported by earnings guidance or free cash flow. In each case, the cash a raise would have used is going to debt reduction, fiber, brand rebuilding or self-help programs. AT&T and Hasbro have the clearest coverage, Kraft Heinz pays the most income, and Dow has the most cyclical risk. Track free cash flow against the dividend bill, because that is where each cut trigger shows up first.

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