We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
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.
Several companies have been delivering positive news to shareholders lately, including announcements of higher dividend payouts.
A company opts to raise its dividend when confident in its current standing and cash-generating abilities.
Of course, it also reflects the company’s commitment to returning value to shareholders, which is undoubtedly encouraging.
Three companies — Advanced Drainage Systems (WMS - Free Report) , Taiwan Semiconductor (TSM - Free Report) , and Northrop Grumman (NOC - Free Report) — recently declared dividend hikes. For those with an appetite for income, let’s take a closer glance 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 amid hot demand.
Shares popped following the release, adding to already impressive year-to-date gains. Up 50% in 2024, shares have widely outperformed relative to the S&P 500.
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 and semiconductor exposure.
Advanced Drainage Systems
WMS shares have also delivered a considerably strong performance in 2024, gaining 22% in value compared to the S&P 500’s 12% gain. Better-than-expected results have aided the move, with the company exceeding the Zacks Consensus EPS estimate by an average of 30% across its last four releases.
Image Source: Zacks Investment Research
The company recently unveiled a 14% boost to its quarterly payout, bringing the quarterly total to $0.16/share. WMS has long displayed a shareholder-friendly nature, boasting a 12% five-year annualized dividend growth rate.
In addition, WMS is expected to continue its steady growth, with Zacks Consensus estimates suggesting 5.6% earnings growth on 5% higher sales in its current fiscal year (FY25). Peeking ahead to FY26, consensus expectations presently allude to a further 17% expansion in earnings paired with a 7% sales climb.
Northrop Grumman
Defense titan Northrop Grumman recently unveiled a 10% boost to its payout, upping the quarterly total to $2.06 per share. NOC shares haven’t fared as well year-to-date, down roughly 4% and underperforming relative to the general market.
Zooming out further, NOC shares have lagged the S&P 500 over the last two years, down 2.2% compared to a 33% move from the S&P 500. Still, the company has been seeing positive earnings estimate revisions for its current fiscal year, providing fuel for shares to move higher.
It’s reasonable to expect NOC shares to see a turnaround story if positive earnings estimate revisions continue to hit the tape.
Image Source: Zacks Investment Research
Bottom Line
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 – Advanced Drainage Systems (WMS - Free Report) , Taiwan Semiconductor (TSM - Free Report) , and Northrop Grumman (NOC - 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
Several companies have been delivering positive news to shareholders lately, including announcements of higher dividend payouts.
A company opts to raise its dividend when confident in its current standing and cash-generating abilities.
Of course, it also reflects the company’s commitment to returning value to shareholders, which is undoubtedly encouraging.
Three companies — Advanced Drainage Systems (WMS - Free Report) , Taiwan Semiconductor (TSM - Free Report) , and Northrop Grumman (NOC - Free Report) — recently declared dividend hikes. For those with an appetite for income, let’s take a closer glance 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 amid hot demand.
Shares popped following the release, adding to already impressive year-to-date gains. Up 50% in 2024, shares have widely outperformed relative to the S&P 500.
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 and semiconductor exposure.
Advanced Drainage Systems
WMS shares have also delivered a considerably strong performance in 2024, gaining 22% in value compared to the S&P 500’s 12% gain. Better-than-expected results have aided the move, with the company exceeding the Zacks Consensus EPS estimate by an average of 30% across its last four releases.
The company recently unveiled a 14% boost to its quarterly payout, bringing the quarterly total to $0.16/share. WMS has long displayed a shareholder-friendly nature, boasting a 12% five-year annualized dividend growth rate.
In addition, WMS is expected to continue its steady growth, with Zacks Consensus estimates suggesting 5.6% earnings growth on 5% higher sales in its current fiscal year (FY25). Peeking ahead to FY26, consensus expectations presently allude to a further 17% expansion in earnings paired with a 7% sales climb.
Northrop Grumman
Defense titan Northrop Grumman recently unveiled a 10% boost to its payout, upping the quarterly total to $2.06 per share. NOC shares haven’t fared as well year-to-date, down roughly 4% and underperforming relative to the general market.
Zooming out further, NOC shares have lagged the S&P 500 over the last two years, down 2.2% compared to a 33% move from the S&P 500. Still, the company has been seeing positive earnings estimate revisions for its current fiscal year, providing fuel for shares to move higher.
It’s reasonable to expect NOC shares to see a turnaround story if positive earnings estimate revisions continue to hit the tape.
Bottom Line
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 – Advanced Drainage Systems (WMS - Free Report) , Taiwan Semiconductor (TSM - Free Report) , and Northrop Grumman (NOC - Free Report) – have recently boosted their payouts.