We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Everybody loves dividends, as they provide a passive income stream, limit drawdowns in other positions, and provide more than one way to profit from an investment.
Recently, several companies, including Taiwan Semiconductor Manufacturing (TSM - Free Report) , PACCAR (PCAR - Free Report) , and PepsiCo (PEP - Free Report) , have announced a boost to their quarterly payouts. For those interested in income, let’s take a closer look at each.
Taiwan Semiconductor
TSM posted better-than-expected results in its latest release, exceeding the Zacks Consensus EPS estimate by nearly 7% and posting sales 2.7% ahead of expectations. Earnings grew 5% year-over-year, whereas revenue jumped 13% from the year-ago period.
Image Source: Zacks Investment Research
The company announced a 10% boost to its payout, bringing the quarterly total to $0.45/share. TSM’s commitment to increasingly rewarding shareholders has kept it a favorite among income-focused investors seeking technology exposure.
Shares currently yield 1.1% annually, nicely above the Zacks Computer & Technology sector average.
Image Source: Zacks Investment Research
TSM shares have been notable outperformers in 2024 on the back of the semiconductor trade, up nearly 50% and crushing the S&P 500.
PACCAR
PACCAR is a leading manufacturer of heavy-duty trucks worldwide, with substantial manufacturing exposure to light/medium trucks. The company recently announced an 11% boost to its payout, bringing the quarterly total to $0.30/share.
The earnings estimate revisions trend has been considerably bullish for its current fiscal year (FY24), up nearly 30% to $8.26 per share over the last year. Growth is expected to cool in FY24, with earnings forecasted to see a decline before resuming growth in FY25.
Image Source: Zacks Investment Research
The company’s quarterly results have consistently beat our expectations as of late, exceeding the Zacks Consensus EPS estimate by an average of 12% across its last four releases.
PepsiCo
PepsiCo, a current Zacks Rank #2 (Buy), manufactures, markets, and distributes grain-based snack foods, beverages, and other products. The company upped its quarterly payout by 7%, bringing the total to $1.35/share.
The company has long been a favorite among income-focused investors, holding the ranks of a Dividend Aristocrat.
Image Source: Zacks Investment Research
The earnings estimate revisions trend has been considerably bullish for its current fiscal year, up 3% to $8.17 per share over the last year and suggesting 7% year-over-year growth. Better-than-expected quarterly results have kept analysts positive, with the company exceeding the Zacks Consensus EPS estimate by an average of 5% across its last four releases.
Image Source: Zacks Investment Research
Bottom Line
Targeting dividend-paying stocks is an excellent strategy that investors can deploy.
Dividends soften the blow from drawdowns in other positions, provide more than one way to reap a return from an investment, and allow maximum returns through dividend reinvestment.
And all three companies above – Taiwan Semiconductor Manufacturing (TSM - Free Report) , PACCAR (PCAR - Free Report) , and PepsiCo (PEP - Free Report) – have recently boosted their payouts.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Dividend Watch: 3 Companies Boosting Payouts
Everybody loves dividends, as they provide a passive income stream, limit drawdowns in other positions, and provide more than one way to profit from an investment.
Recently, several companies, including Taiwan Semiconductor Manufacturing (TSM - Free Report) , PACCAR (PCAR - Free Report) , and PepsiCo (PEP - Free Report) , have announced a boost to their quarterly payouts. For those interested in income, let’s take a closer look at each.
Taiwan Semiconductor
TSM posted better-than-expected results in its latest release, exceeding the Zacks Consensus EPS estimate by nearly 7% and posting sales 2.7% ahead of expectations. Earnings grew 5% year-over-year, whereas revenue jumped 13% from the year-ago period.
Image Source: Zacks Investment Research
The company announced a 10% boost to its payout, bringing the quarterly total to $0.45/share. TSM’s commitment to increasingly rewarding shareholders has kept it a favorite among income-focused investors seeking technology exposure.
Shares currently yield 1.1% annually, nicely above the Zacks Computer & Technology sector average.
Image Source: Zacks Investment Research
TSM shares have been notable outperformers in 2024 on the back of the semiconductor trade, up nearly 50% and crushing the S&P 500.
PACCAR
PACCAR is a leading manufacturer of heavy-duty trucks worldwide, with substantial manufacturing exposure to light/medium trucks. The company recently announced an 11% boost to its payout, bringing the quarterly total to $0.30/share.
The earnings estimate revisions trend has been considerably bullish for its current fiscal year (FY24), up nearly 30% to $8.26 per share over the last year. Growth is expected to cool in FY24, with earnings forecasted to see a decline before resuming growth in FY25.
Image Source: Zacks Investment Research
The company’s quarterly results have consistently beat our expectations as of late, exceeding the Zacks Consensus EPS estimate by an average of 12% across its last four releases.
PepsiCo
PepsiCo, a current Zacks Rank #2 (Buy), manufactures, markets, and distributes grain-based snack foods, beverages, and other products. The company upped its quarterly payout by 7%, bringing the total to $1.35/share.
The company has long been a favorite among income-focused investors, holding the ranks of a Dividend Aristocrat.
Image Source: Zacks Investment Research
The earnings estimate revisions trend has been considerably bullish for its current fiscal year, up 3% to $8.17 per share over the last year and suggesting 7% year-over-year growth. Better-than-expected quarterly results have kept analysts positive, with the company exceeding the Zacks Consensus EPS estimate by an average of 5% across its last four releases.
Image Source: Zacks Investment Research
Bottom Line
Targeting dividend-paying stocks is an excellent strategy that investors can deploy.
Dividends soften the blow from drawdowns in other positions, provide more than one way to reap a return from an investment, and allow maximum returns through dividend reinvestment.
And all three companies above – Taiwan Semiconductor Manufacturing (TSM - Free Report) , PACCAR (PCAR - Free Report) , and PepsiCo (PEP - Free Report) – have recently boosted their payouts.