FedEx and 5 Other Stocks Poised for More Than 6% Dividend Increases

Traders, buckle up! The S&P 500 index is gearing up for a pretty robust year in the dividend department. According to S&P Dow Jones Indices, we’re looking at an average year-over-year dividend increase of **6%** for large-cap stocks this year. That bump is better than last year’s **5.1%** but still lagging behind the spectacular **11%** surge that marked 2022. What’s the buzz in the market? Companies are keeping a cautious eye on the economy, government spending, and tax policies as the presidential election looms, according to senior analyst Howard Silverblatt.

Despite this caution, a select group of companies is stepping up their game with dividend hikes exceeding **6%**. We’ve highlighted 6 stocks that are on track for substantial increases this year, and they don’t just come with attractive yields; they also carry momentum worth paying attention to.

Goldman Sachs Group (GS)

Goldman Sachs is in the spotlight with a dividend yield of **2.3%** that’s driving positive sentiment. Analysts forecast that the investment giant will distribute **$11.56** per share this year, soaring **10%** above last year’s **$10.50**. At a financial conference last month, CEO David Solomon assured investors of their commitment to continued dividend growth. Count this stock as a heavyweight in your portfolio!

Amgen (AMGN)

Next up is biotechnology titan **Amgen**, boasting a solid dividend yield of **2.8%**. Known for its blockbuster drugs like Enbrel, the company is predicted to increase its dividend to **$9.19**—an **8%** jump from last year’s **$8.50**. With this kind of performance, Amgen is not just a biotech leader; it’s also a worthy dividend player.

State Street (STT)

**State Street**, with its dividend yield of **3.3%**, has exhibited an impressive **20%** return year to date. Analysts expect the financial services company to raise its dividends to **$2.90** this year, a **10%** increase over **$2.64** in 2023. The company maintains a healthy payout ratio of about **35%** of its earnings, suggesting it’s got room to keep those dividends flowing. Keep an eye on State Street as it carves out gains in the financial sector!

FedEx (FDX)

Global logistics powerhouse **FedEx** has a yield of **2.1%**. While its stock has only returned **7%** this year, which trails the S&P 500’s **24%**, the company is making significant strides in profitability through cost-cutting measures. Analysts predict a dividend of **$5.51** a share for the current fiscal year, marking a **9%** increase from **$5.04** last year. FedEx remains a stock to watch—especially as it maneuvers its way to improved margins.

SLB (SLB)

**SLB**, formerly Schlumberger, is making waves with a yield of **2.5%**. Although the stock is down **12%** year-to-date, the company is expected to pay out **$1.09** per share this year, up from **93 cents** in 2023. Following the pandemic-induced dividend cuts, SLB is on a steady path of regular increases, with forecasts projecting annual payments reaching **$2** a share by 2028. This could be your chance to scoop up a value play in the oil services sector!

Zoetis (ZTS)

Finally, we have **Zoetis**, the animal health company sporting a lower yield of **0.9%**. But don’t let the yield fool you; this company has delivered consistent double-digit growth in dividends. Analysts forecast a payout of **$1.71** per share this year, representing a **14%** hike from **$1.50** in 2023. With its focused growth strategy, Zoetis is a solid contender for those prioritizing growth over immediate yield.

The Bottom Line

As the economic landscape evolves, it’s critical to remain vigilant about dividend growth opportunities. The six companies mentioned here—Goldman Sachs, Amgen, State Street, FedEx, SLB, and Zoetis—each exhibit different strengths but share a commitment to rewarding shareholders. Whether you’re looking for stability or growth, these stocks are tuned to deliver strong dividends as we move further into the year. Stay ahead of the curve and keep these names on your trading radar!

Remember, while these stocks show promise for dividend growth, always perform due diligence and consider broader market trends before making any moves.