4 Dividend Stocks Yielding Up to 4.8% That Just Raised Their Payouts
Bond coupons never grow, but these four payers just handed shareholders a raise. One has a cash-rich balance sheet, one faces a $49 billion gamble, one is heading for a breakup, and one has a blemish on its record.
Income investors are getting paid to own stocks again. Each of these four companies raised its regular quarterly dividend in 2026, and together they yield between roughly 2.9% and 4.8%. That matters because bonds pay a fixed coupon. On CNBC’s Halftime Report, one panelist pointed out that “that 5.3 yield that you’re getting on your bonds will never grow,” while dividend stocks can raise their payouts as earnings grow. The best example in this group is Darden Restaurants (NYSE:DRI | DRI Price Prediction), whose latest quarterly payout of $1.62 was up 8.0%. For each pick below, we look at dividend safety first and yield second.
T. Rowe Price: A 4.8% Yield Funded by a Cash-Heavy Balance Sheet
T. Rowe Price (NASDAQ:TROW) pays an annualized $5.20 per share, for a forward yield of about 4.79% at the current price of $108.66. It is the highest yield among the four.
Dividend safety: Trailing dividends of $5.17 compare with trailing diluted EPS of $9.88, a payout ratio of about 52%. Each quarterly payment costs roughly $277 million, and third-quarter net income was $612.3 million. The CFO said the company holds “$4.9 billion in cash and discretionary investments” and listed “support the dividend” among its capital priorities. The regular quarterly rate rose from $0.90 in 2020 to $1.08, $1.20, $1.22, $1.24, $1.27, and then $1.30 in 2026. The company also paid a $3 special dividend in June 2021. The board declared the next $1.30 payment on November 4, 2026.
Bull case: Q3 adjusted EPS of $2.86 beat the $2.65 estimate, and revenue rose 5.9% YoY to $2.00 billion. The newer businesses are growing. ETF assets reached $33.8 billion, up from $6.9 billion two years ago, and fixed income logged 11 quarters of net inflow. The stock trades at a forward P/E of 10.
Risk: Clients pulled a net $28.3 billion in the quarter, and the effective fee rate fell to 37.8 bps from 39.1 bps. Wall Street is skeptical. The stock has zero buy ratings, 10 holds, 1 sell and 3 strong sells, and the average target of $105.38 sits below today’s share price. Shares are still down 38.42% over five years.
Kimberly-Clark: Decades of Raises Meet a $49 Billion Kenvue Deal
Kimberly-Clark (NASDAQ:KMB) pays an annualized $5.12 per share, a forward yield of about 4.73% at $108.29.
Dividend safety: No stock in this group has a longer record of raises. Kimberly-Clark’s quarterly rate went up every year in its dividend history, from $0.26 in 1999 to $1.28 in 2026. It declared its latest hike, to $1.26, on January 27, 2026. Coverage is closer than the run suggests, though. Trailing dividends of $5.10 were slightly above trailing diluted EPS of $5.07. The forward P/E of 15 points to higher earnings ahead, which should cover the payout better.
Bull case: Q3 adjusted EPS of $1.70 beat the $1.65 estimate. It was the company’s sixth straight beat. The Kenvue acquisition closed on November 2, 2026, and adds Listerine, Neutrogena, Tylenol, and Johnson’s to Huggies and Kleenex. With a beta of 0.276, the stock has moved much less than the broader market, which suits an income portfolio. Analysts’ average target is $114.62.
Risk: The $49 billion Kenvue deal will substantially increase debt, and the core business is soft right now. Organic sales fell 1.3%, and International Personal Care operating profit dropped 32.7% because of disruption in China. If the Kenvue integration goes poorly, future dividend increases could be much smaller.
Genuine Parts: Free Cash Flow Still Covers the Dividend Ahead of a Breakup
Genuine Parts (NYSE:GPC), the parent of NAPA and Motion, pays an annualized $4.25 per share, a forward yield of about 3.44% at $123.38.
Dividend safety: Free cash flow is the number to focus on. Through the first nine months, Genuine Parts produced about $500 million of free cash flow and paid about $434 million in dividends. Full-year free cash flow guidance is $550 million to $700 million. Measured against the low end of adjusted EPS guidance ($7.50), the payout ratio is about 57%. GAAP figures look much worse. Restructuring charges cut trailing diluted EPS to $0.26, so the trailing P/E is not a useful measure right now. The quarterly rate has gone up every year in the record, from $0.575 in 2014 to $1.0625 in 2026.
Bull case: Industrial is the stronger business right now. Comparable sales rose 5.5%, and EBITDA margin expanded 60 bps to 13.2%. Restructuring has saved $105 million so far this year. The split into GPC and Motion is on track for Q1 2027, giving investors two simpler businesses to value. Analysts’ average target is $140.
Risk: Nobody knows yet how the dividend will be divided between the two companies after the split. Management said it will give capital allocation details at the investor days on December 8 and December 9. Adjusted EPS guidance was also narrowed to $7.50 to $7.75, with the company likely to land toward the low end. North America Automotive margins are still under pressure.
Darden Restaurants: An 8% Raise Backed by Rising Same-Restaurant Sales
Darden pays an annualized $6.48 per share, a forward yield of about 2.85% at $227.02. It has the lowest yield of the four but has been raising its dividend the fastest.
Dividend safety: Measured against the low end of fiscal 2027 EPS guidance ($11.10), the forward payout ratio is about 58%. In fiscal Q1, operating cash flow of $279 million exceeded the $184.2 million paid in dividends. Darden also spent $222.3 million on buybacks and has $1.3 billion left on its repurchase authorization. Management cited the company’s investment-grade credit profile on the earnings call. The quarterly rate has risen every year since 2021: from $0.88 to $1.10, then $1.21, $1.31, $1.40, $1.50, and $1.62.
Bull case: Every segment posted positive same-restaurant sales. LongHorn led with a 6.8% gain, its 22nd consecutive quarter of growth, and Yard House became Darden’s third billion-dollar brand. Management confirmed fiscal 2027 EPS guidance of $11.10 to $11.35. Analysts are the most positive on Darden of the four stocks, with 18 buy or strong buy ratings and an average target of $233.44.
Risk: Darden’s record has a gap. Its dividend history includes a reduced $0.30 payment in October 2020, so the current run of raises is newer than the other three. Shares are also up 27.28% this year, which has pushed the yield down. Olive Garden’s same-restaurant sales rose just 1%, with 3% commodity inflation expected this fiscal year.
Four Ways to Collect a Growing Dividend
T. Rowe Price and Kimberly-Clark offer the highest current yields. Genuine Parts has the clearest free cash flow coverage going into its separation. Darden has the strongest dividend growth and the most analyst support. All four payouts come from established businesses that raised their dividends in 2026. The dates to watch next are Genuine Parts’ December investor days and Kimberly-Clark’s first earnings report since closing the Kenvue deal.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
