These 5 Stocks Just Raised Dividends BIG TIME 🚀

In my opinion, there's nothing better than getting paid cold hard cash for doing absolutely nothing. And dividend investing offers exactly that, which is one of the reasons I love it so much. Just by owning shares of profitable cash generating businesses, you can collect a steady paycheck every quarter or even every month without having to lift a finger. And the best part is that those paychecks can actually grow over time. As these businesses get bigger and better, increasing their sales, their profits, and their free cash flow, they'll often reward shareholders by increasing their dividends right alongside them. And in this video, we're going to look at five stocks that just announced some pretty massive dividend increases, well above the rate of inflation, thankfully. Which means that in addition to your passive income stream growing, your purchasing power is growing as well. Before we get into it though, in case you're new to the channel, my name is Ryan and here we talk all about dividend investing and how you can use it to create passive income and reach financial freedom. So, if you love dividend investing and if you're on a mission to retire early, then hit that subscribe button. I'd love to have you along as we continue to grow our portfolios and collect that cash flow. Anyway guys, kicking things off, our first dividend increase of the day comes from Lamb Research, ticker symbol LRCX, which is a semiconductor equipment manufacturer. Now, obviously, this is a very hot industry right now. And the thing about Lamb Research is that it doesn't actually make these semiconductor chips itself. Instead, it builds the highly specialized machines and equipment that other companies like Samsung and TSMC, for example, use to manufacture those chips. And as these companies build more factories and invest in producing newer, more advanced chips, Lamb Research makes money by selling them the equipment they need to actually do so. So, in other words, it's a picks and shovels type of business. Anyway, jumping over here to Simply Safe Dividends. As we can see, Lamb Research just announced a whopping 27% increase to their dividend. That is a crazy raise and this marks their 13th consecutive year of dividend growth. So, a very nice track record as well. And by the way guys, everything that we're looking at today is coming from Simply Safe Dividends, which I think is a must have for dividend investors. This is the tool that I use to stay upto-date on all of these different dividend increases. I use it every day. And if you're trying to analyze dividend stocks and get a good sense for how safe a company's dividend actually is, I think this is the best tool out there for that as well. They actually publish a public track record of how their dividend safety scores have performed. And since 2015, investors who followed those ratings would have avoided 97% of all dividend cuts. And in the case of Lamb Research here, it has a dividend safety score of 66, which is safe, meaning that the risk of this company cutting its dividend is pretty low, which probably makes sense if they're able to shallow out such large dividend increases like the one they just announced. But if you want to check out Simply Safe Dividends for yourself, there's a link to it down in the description of the video where you can try it free for a full month. And you don't even need to put in a credit card. You can just sign up with your email and see what you think. But anyway, getting a bit deeper into Lamb's dividend growth history. Like we established, this most recent raise marks their 13th year of growth. But over the past 5 and 10 years, the growth has been just as impressive. Over the past 5 years, you're looking at 15% on average. And over the past 10, it's pretty incredible. It's actually just over 24%. And scrolling down, looking at the dividend yield, the growth is certainly going to be more exciting. The yield is not much to speak of at this point. It's coming in at 4/10en of a percent, so a very low starting yield. And this is actually quite a bit below the company's 5-year average of just over 1%. And this is only because the share price has risen so much. And scrolling down, looking at the payout ratios, unsurprisingly, this dividend is very well covered. The earnings payout ratio in the last 12 months is less than 20%, the free cash flow payout ratio is just under 30%. So plenty of room to continue shelling out these massive dividend increases, which if we scroll down just a little bit more, are certainly supported by the earnings in free cash flow growth. These charts are very impressive. Both are pretty much just straight up and to the right. This is exactly what you want to see. And one more bright spot for Lamb Research is the fact that they basically have no debt. As we can see right over here, the interest coverage is incredibly high at 52.3. So, whatever little bit they do have is not an issue whatsoever. Having said all of that, I'd love to hear from you guys. Do you have any Lamb Research in your portfolio? What do you think about this company? I'd love to know your thoughts on really any of the stocks that we're talking about today. Anyway, moving on. Our next dividend increase is coming from Nordson, ticker symbol NDSN, which is an industrial company that makes all kinds of highly specialized equipment and components used by other manufacturers. A big part of Nordson's business revolves around precision dispensing equipment, which basically means machines that apply very specific amounts of things like adhesives, coatings, and sealants during the manufacturing process. And these products are used across a bunch of different industries from packaging and electronics to healthcare where Nordson even has a hand in making things like hearing aids, pacemakers, and contact lenses. And jumping back over to Simply Safe, as we can see here, Nordson just announced a 15% increase to their dividend. So, another double-digit raise, marking their 63rd straight year of dividend growth. So, Nordson is a dividend king. And a very safe one at that, too. As we can see, they have a dividend safety score of 94. It hardly gets better than that. Now, looking a bit closer at the dividend growth here, it looks like it's really taken off over these past few years. Since 2021, they've really shelled out some aggressive raises. And on average, over the past 5 years, they've grown the dividend by 15.6%, which is just slightly higher than the most recent raise. And over the past 10 years, it's in a similar range, 13.4% on average. So, really impressive across the board, especially for a dividend king, too. I don't feel like it's too often that you see these dividend kings who have these very extensive growth histories raising their dividends double digits. It's a bit of an anomaly. Now, scrolling down, looking at the dividend yield, once again, this is not going to be the highest starting yield. It's coming in at 1.16%, which is spoton with the 5-year average. So, to some of you guys, that may be a bit unexciting, which is understandable. But if you have time on your side to let dividend growth do its thing, this low starting yield should grow into something pretty meaningful over time if they can continue to shell out those double-digit increases. And if we scroll down, looking at the payout ratios, it looks like they have the capacity to do so. I mean, in the last 12 months, the earnings payout ratio is only 28%, which is very consistent with where it's historically been. And same thing with the free cash flow payout ratio. This is coming in at 25%. So, just a little bit lower than the earnings payout ratio and still consistent with where it's usually sat. And then scrolling down just a little bit, the earnings per share and free cash flow per share growth charts look fantastic. Pretty similar to what we saw with Lamb Research. I actually think these look a bit better. Either way, both of these charts are straight up and to the right, which means that they should continue to be able to shell out those nice raises. And as opposed to Lamb Research, Nordson does have a little bit of debt on the balance sheet, but it's nothing too crazy. The net debt to IBIDA is only 1.64. That's not bad. And the interest coverage is in a decent spot as well. In the last 12 months, it's coming in at about 9, which is just above where we'd like to see it. All in all, I think Nordson's kind of a sleeper. You really don't hear it talked about all too often, but based on the fundamentals and the dividend growth and the history, it probably deserves some more recognition. All right, guys. Now, moving on. Stock number three on our list is Into It, ticker symbol INTU. And I'm sure you're already familiar with this company, which is best known for owning products like Turboax, QuickBooks, Credit Karma, and Mailchimp. Now, the great thing about this business is that most of in it IT softwares are subscription-based and are able to generate recurring revenue and their platforms tend to be pretty sticky. As an example, if you're a business that has all of your accounting and financial history inside QuickBooks, you probably aren't going to go through the headache of switching to a completely different platform unless you have a pretty good reason to do so. Now, jumping over to Simply Safe and looking at their dividend raise into it just announced a 15% increase to their dividend, marking their 14th consecutive year of growth. Now, one of the things that I think is interesting about IN it as opposed to the two other stocks we've talked about so far today is the fact that in it IT share price has taken a complete dump this past year. As we can see year-to- date, this stock is down 46% over the past year. It's about the same, down 45.7%. And I think that into it here is a great example of the fact that the share price is not often reflective of the fundamental strength of the business. Because if the business itself was struggling, you know, they likely would not be shelling out these double-digit dividend increases. And this recent raise, this 15% is right in line with what the company's done over the past 5 and 10 years. The 5-year average CGER is 15.3%. Over the past 10 years, it's 14.9%. So, this is all very consistent. And even though the yield is still on the lower end, just like the other couple of stocks at 1.54%, this is way higher than the company's 5-year average, which just speaks to how much the share price has pulled back. And one of the cool things about this company in particular is that as we can see, the dividend coverage is increasing over time. So about 10 years ago, the earnings payout ratio was 31%. But very consistently they've been able to bring this down and it was 19% in the last 12 months which basically just means that they are growing the earnings per share faster than they are raising the dividend. And we see a similar trend here with the free cash flow payout ratio and over the past 12 months this came in at 15%. So both are very safe plenty of wiggle room here. And fundamentally if we scroll down looking at the earnings per share and free cash flow per share I mean these charts are just a work of art. And even on the debt side of things, they do have a little bit of debt, but the net debt to IBIDA is only 0.1, which means they have way, way more IBIDA coming in, which is earnings before interest, taxes, depreciation, amortization, stuff like that. Way more profits coming in than they have net debt on the balance sheet. So, debt's not an issue at all. Interest coverage is very high at 24.1. And, you know, into it was really just getting caught up with all of the SAS apocalypse concerns. We've talked about that quite a bit on the channel so far this year. Taking a look under the hood and looking at some more of the fundamentals though, you know, it still seems like into it firing on all cylinders. And just from a dividend growth perspective, everything seems to be ship shaped with into it. But I'd love to hear from you guys. What do you think about into it? Cuz I know there's differing opinions on this just based on how AI might impact a company like this. So let me know your thoughts in the comments. Anyway, guys, moving on. This is going to bring us to dividend raise number four, which is coming from American Financial Group, ticker symbol AFG, which is an insurance company that mostly specializes in property and casualty insurance for businesses. So rather than focusing on things like home and auto insurance, AFG tends to be much more specialized, providing insurance for things like trucking and transportation companies, agricultural businesses, and even things like workers comp. Personally speaking, insurance companies really aren't something that's in my wheelhouse, so I tend not to invest in them myself. But I will say AFG looks like one heck of a dividend growth stock. They just announced a 10% increase marking their 21st straight year of dividend growth, which is very nice. And the dividend here is very safe as well. They've got a dividend safety score of 80. And looking a bit deeper into the dividend growth history, AFG has a great track record of growing this thing. We've already established this was their, you know, 21st straight year of dividend growth, but over the past five and 10 years, the raises have been very impressive. 12.7% on average over the past five. about the same over the past 10. And of the four companies that we've talked about so far, AFG has the highest starting yield at 2.7%. So, I think, you know, this starting yield paired with a double-digit dividend growth rate, I think these are really nice dividend stats. And the yield right now is a little bit higher than the 5-year average of about 2 and a/4%. So, that's nice to see as well. And unsurprisingly, the dividend also looks to be very well covered. The earnings payout ratio is only 30% in the past 12 months, which is very consistent with the historical trend. A bit higher actually. we do see it, you know, going up a bit since 2021, but still plenty of room to continue growing this thing. Same thing with the free cash flow payout ratio. We do see the trend going up and to the right over the years, but still in the last 12 months, it's only 19%. With that said, though, since this is an insurance company, we're not going to refer to the free cash flow as much. Simply Safe actually has a nice blurb about that here. They say it usually makes more sense to review an insur's earnings payout ratio instead because cash flow can be volatile and hard to gauge since insurance firms do not make material capital expenditures. Their investment portfolios can create noise and the timing of payouts on their policy liabilities is unpredictable. So because of that we'll refer more so to the earnings per share and the earnings payout ratio. Still, this looks to be in great shape. Scrolling down a bit, the earnings per share growth looks fantastic as well, you know, and there's really not too much debt to speak of here. The net debt to IBIDA is 0.4. So they have more IBIDA coming in than they have net debt on the balance sheet in the interest coverage at 13 1.5 is pretty high. So we like that. Anyway, guys, last but not least, dividend raise number five is coming from none other than Badger Meter, ticker symbol BMI, which is a company that I've probably talked about to death on the channel this year, but I just think this is a really cool business. In a nutshell, Badger Meter makes water meters, sensors, and other technology that helps cities and utilities track how much water is being used and helps them monitor the quality of that water. Now, while water meters may not sound all of that exciting, Badger Meter has evolved into much more of a technology company over the years, I actually don't think a lot of people appreciate just how advanced their technology really is. Badger's water monitoring hardware is now paired with software too that allows these utilities to remotely monitor water usage, detect leaks, and basically keep tabs on their entire system, which is helping to create a nice recurring revenue stream for the business. And like all the other stocks we talked about today, Badger Meter raised their dividend double digits. This one was for 10%, which marks their 34th straight year of growth. And look at that dividend safety score. 94 out of 100. Very safe. We love to see it. And over the years, Badger's dividend growth has just been getting more and more aggressive. So the last raise was 10%. But on average, over the past 5 and 10 years, the dividend growth is a bit more aggressive. Over the past 5 years, on average, we're looking at 16%. Over the past 10, we're looking at 14%. So from top to bottom, all across the board, looking great. Now, like all the other stocks we talked about today, Badger Meter starting yield is not going to be super exciting. It's 1.3%, but this is quite a bit higher than the company's 5-year average yield of 0.76%. So, at least there's that. And these payout ratios are looking great. The earnings payout ratio is only 37% and is actually lower than it used to be back in the day. They used to be pushing about 40%. So, the dividend coverage is improving there. The free cash flow payout ratio is a bit lower actually at 31%. And both the earnings per share and free cash flow per share have grown pretty tremendously. And one of my favorite things about Badger Meter is that the company has no debt whatsoever. So the risk of this company going bankrupt is basically non-existent. So guys, those were the five major dividend increases I wanted to tell you about today. But there were still quite a handful of other companies that also raised their dividends that I think you should know about. The first one is Altria. I know a lot of you guys out there own Altria, a legendary dividend king. This was their 57th year of dividend growth and they just raised it 4.7%. Which is great. Great. I mean, the dividend safety score is still 60. You're still getting a nice high starting yield of about 6 1/2%, so everything's looking good. Moving on, Illinois Toolworks, ticker symbol ITW, also announced a 6.8% increase. Not too shabby there, which marks their 54th straight year of raising dividends. They've been growing this thing since 1972. Their dividend here is also pretty dang safe with a safety score of 81. And the starting yield right now is about 2.5%. So, not bad. Moving on, Dover DOV, which is another dividend king, just barely raised their dividend under 1% right here, but this marks their 71st straight year of raising dividends. They have a great safety score as well of 89. Next up, Carile, ticker symbol CSL, also announced a pretty nice dividend increase, 14% here, marking their 50th straight year of dividend growth. So, they are officially a dividend king. And this is the best dividend safety score we've seen all day, 99. Anyway, moving on. Broadidge Financial, ticker symbol BR, which is a company that I started to get really interested in lately, also announced a great dividend increase 12%, continuing their streak since 2007. So, what is that, 19 years of growth? With that said, they have a dividend safety score of 75, not too shabby, and a pretty decent starting yield of 2.4%. So, a lot of great dividend raises out there, guys. And with that, if you're in the market for some cheap dividend stocks, then check out this next video right over here where I'm telling you about three of them that all look like decent buys right now in the month of September. So, click right over here to learn about those.