At this time, not all dividend stocks offer the highest yields. And that's because they still need to put some money away to help finance the growth prospects that their firms are seeing, which is strong.
Despite their relatively low yields, UnitedHealth Group (NYSE: UNH), Visa (NYSE: V), and Costco Wholesale (NASDAQ: COST) are three dividend companies that might be great long-term investments. Take a deeper look at their dividend streaks and the reasons behind them to see if their payouts will keep going up for years to come.
As it has done for the past fourteen years running, health insurance behemoth UnitedHealth Group boosted its dividend in 2023. The amount of the dividend increase—14%—was noteworthy
Compared to other dividend stocks, UnitedHealth has been rather active in raising its rates. More than twice as much as the $0.90 quarterly dividend it paid out five years ago, at $1.88 now.
With the stock's phenomenal gains—shares of UnitedHealth have increased by almost 600% in a decade—the dividend yield would be substantially greater than 1.5%, which is in line with the S&P 500 average.
The business has finished off another successful year; sales for 2023 were $371.6 billion, an increase of 15% from the previous year. The enormous $29.1 billion in operating cash flow was about $3 billion more than the previous year's total.
UnitedHealth's dominant market position and the aging population in the United States all point to more expansion in the near future for the healthcare provider. This is great news for dividend investors, as it should lead to improved profitability and larger payouts.
Length of stay: fifteen years With a dividend of just 0.8%, credit card giant Visa is a company with a poor yield. However, the stock's consistency is what makes it an attractive income investing option. Regardless of economic fluctuations, credit cards are still widely used. When times are tough, individuals may rely on them a lot. Even when things are looking up, people may be using their credit cards to earn rewards and take advantage of other advantages.
Net revenue for the first quarter of fiscal 2024 (ending Dec. 31, 2023) increased 9% year-over-year to $8.6 billion, according to the data just released by Visa. The 17% increase to $4.9 billion in net income was even more impressive. The company appears to be doing well despite inflation and customers cutting back on spending.
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