Everybody loves dividends, as they provide a passive income stream, limit drawdowns in other positions, and provide more than one way to profit from an investment.
And when considering dividend-paying stocks, those with a history of boosting their payout are prime considerations, reflecting their commitment to increasingly rewarding shareholders.
In addition, consistent dividend hikes reflect the company’s successful nature, opting to share profits with shareholders.
For those seeking companies that have recently boosted payouts, two favorably ranked companies, American Express (AXP) and Pearson (PSO) , fit the criteria. Let’s take a closer look at each.
AXP Keeps Paying Investors
AXP has long been recognized as a strong income-focused play thanks to consistent payouts over the years, with the company sporting a shareholder-friendly 12.5% five-year annualized dividend growth rate. Below is a chart illustrating the company’s dividends/share on an annual basis.
Image Source: Zacks Investment Research
In addition, analysts have become bullish on the company’s current year EPS outlook, with the $15.31 per share estimate up 4% over the last year and suggesting 15% year-over-year growth. The stock sports a favorable Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
AXP recently upped its quarterly payout by 17%, bringing the quarterly total to $0.82 per share. Shares currently yield 1.1% annually compared to a 1.3% annual yield from the S&P 500.
PSO Shares Show Relative Strength
Pearson shares have shown a nice level of relative strength in 2025, gaining 2% compared to a 5% decline from the S&P 500. The company unveiled a massive 120% boost to its quarterly payout in late February, with the quarterly payout now totaling $0.21 per share.
Image Source: Zacks Investment Research
As shown below, the company is slowly returning to a more shareholder-friendly nature over recent years following payout cuts throughout the 2015 – 2019 period.
Image Source: Zacks Investment Research
Like AXP, Pearson has enjoyed positive earnings estimate revisions for its current fiscal year, helping land the stock into a favorable Zacks Rank #2 (Buy). The current $0.88 Zacks Consensus EPS estimate suggests 13% growth YoY.
Bottom Line
Dividends bring about many great perks to investors, such as passive income and the ability to achieve maximum returns through dividend reinvestment.
Companies boost payouts when business is fruitful, overall sending a positive message concerning the longer-term picture. In addition, consistently higher payouts owe to a company’s cash-generating abilities, undoubtedly a huge positive.
And for those seeking companies looking to pay their shareholders a higher paycheck, both companies above – American Express (AXP) and Pearson (PSO) – fit the criteria.
— Derek Lewis
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Source: Zacks