Core Viewpoint - The article discusses five companies expected to announce significant dividend increases, highlighting the potential for substantial payout hikes and the positive impact on stock prices due to the "dividend magnet" effect [1][3]. Group 1: Companies with Projected Dividend Announcements - ADT Inc. is projected to announce a 57% dividend increase in early 2024, marking its first hike since initiating a dividend in 2018. The company has reduced its debt from nearly 10billionto7.7 billion after selling its commercial business for 1.6billion[4][5].−ScorpioTankersisexpectedtoannounceitsdividendinmid−February2024,withahistoryofincreasingdividendsfrom10centspershareinFebruary2022to40centsinFebruary2024.Theupcomingannouncementwillindicatewhetherrecentincreasesaresustainable[8][10].−MeritageHomesisanticipatedtoannounceadividendhikeinmid−February2024,havingpreviouslytripleditsdividendwitha1781.19 per share, nearly double from the start of 2023 [21][24]. Group 2: Dividend Growth Dynamics - The "dividend magnet" effect suggests that companies with strong dividend growth attract investors, leading to higher stock prices. Broadcom serves as an example, where investors who bought shares post-merger have seen an 18% yield [1][2]. - Companies that have historically provided significant dividend increases, such as ADT and Scorpio Tankers, are seen as potential opportunities for investors looking for income and capital appreciation [3][9]. - The cyclical nature of the shipping industry, as exemplified by Scorpio Tankers, leads to variable dividend programs, making consistent increases noteworthy [9][12].
ADT(ADT) Forbes·2025-01-14 14:00