20 dividend stocks with high yields that are expected to raise payouts the most through 2024

There are different ways to select stocks based on dividends. An investor might look for companies paying high dividends, with the hope that payouts will keep rising. Or the investor might focus less on high current yields and more on consistent dividend increases.

Below is a screen of stocks taking the first approach, beginning with companies whose shares have dividend yields at least as high as the yield on 10-year U.S. Treasury notes
TMUBMUSD10Y,
3.135%
,
which was 3.10% when trading ended on Aug. 29. (For reference, the S&P 500
SPX,
-1.10%

has a weighted dividend yield of 1.63%, according to FactSet.)

Interest rates have been rising rapidly as the Federal Reserve pushes to slow the economy as part of its effort to lower inflation. The 10-year yield has more than doubled from 1.52% at the end of 2021.

There are various ways to screen dividend stocks. One way is to look at cash-flow estimates to identify a group of companies expected to support their current dividends easily. This provides comfort that dividends not only won’t be cut, but will be increasing. Here’s a screen of real-estate investment trusts that appear well-positioned to increase dividends.

Highest ‘CAGR’ for dividend payouts

For this screen, we have taken a simple approach. Among the S&P 500, there are 111 stocks with dividend yields of 3.10% or higher. These 20 are expected to show the highest compound annual growth rates (CAGR) for their dividend payouts through 2024, based on consensus estimates among analysts polled by FactSet:

Company

Ticker

Dividend yield

Expected two-year dividend CAGR

Estimated dividend – 2022

Estimated dividend – 2023

Estimated dividend – 2024

Tapestry Inc.

TPR,
+1.28%
3.42%

21.7%

$0.87

$1.22

$1.29

Stanley Black & Decker Inc.

SWK,
-1.02%
3.56%

14.3%

$2.89

$3.16

$3.77

Amgen Inc.

AMGN,
-0.11%
3.24%

12.0%

$7.68

$8.43

$9.63

Bank of New York Mellon Corp

BK,
-0.19%
3.54%

10.5%

$1.42

$1.56

$1.74

Ford Motor Co.

F,
-0.77%
3.85%

10.4%

$0.48

$0.55

$0.58

Comerica Inc.

CMA,
-0.15%
3.36%

9.8%

$2.74

$2.93

$3.30

Eastman Chemical Co.

EMN,
-1.70%
3.20%

9.0%

$3.06

$3.28

$3.64

Devon Energy Corp.

DVN,
-4.13%
6.29%

8.4%

$0.68

$0.75

$0.80

HP Inc.

HPQ,
-1.36%
3.17%

8.4%

$0.98

$1.06

$1.15

Northern Trust Corp.

NTRS,
+0.16%
3.15%

8.2%

$2.91

$3.13

$3.41

Invesco Ltd.

IVZ,
-1.30%
4.42%

8.2%

$0.73

$0.77

$0.86

Best Buy Co. Inc.

BBY,
+1.61%
4.78%

8.1%

$3.35

$3.65

$3.92

PNC Financial Services Group Inc.

PNC,
-0.51%
3.75%

8.1%

$5.78

$6.33

$6.76

State Street Corp.

STT,
+0.52%
3.67%

8.1%

$2.39

$2.59

$2.79

Regions Financial Corp.

RF,
-0.23%
3.68%

7.9%

$0.74

$0.83

$0.86

Citizens Financial Group Inc.

CFG,
-0.11%
4.57%

7.9%

$1.62

$1.73

$1.88

NRG Energy Inc.

NRG,
-1.01%
3.37%

7.8%

$1.40

$1.51

$1.63

Garmin Ltd.

GRMN,
-1.18%
3.22%

7.7%

$2.87

$3.10

$3.33

Hewlett Packard Enterprise Co.

HPE,
-0.51%
3.50%

7.5%

$0.48

$0.51

$0.56

Morgan Stanley

MS,
-1.08%
3.63%

7.4%

$2.97

$3.18

$3.43

Source: FactSet

As always, you should do research to form your own opinion before considering any investment. One way to begin that process is by clicking on the tickers for more information. Also, click here for Tomi Kilgore’s detailed guide to the wealth of information available for free on MarketWatch quote pages.

Here’s another approach to selecting dividend stocks.

Don’t miss: This investment strategy acts on 18 trends to cut your risk when the stock market is volatile

Hear from Ray Dalio at MarketWatch’s Best New Ideas in Money Festival on Sept. 21 and 22 in New York. The hedge-fund pioneer has strong views on where the economy is headed.

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