One of the joys of investing, apart from enjoying capital appreciation (the difference between the price at which you’ve invested in the company, and the price you’ve divested) from your investments, is dividends received from time-to-time – and speaking of which, isn’t it a good feeling when companies you are invested in increases its dividend payout every year (it’s like receiving a ‘pay rise’ from your day job.)

Here are 9 US-listed companies (many are names you have heard of) that have not only manage to record improvements in its financial performances, but also increase its dividend payouts to shareholders over the last 5 years (not only that, the management of these companies have declared a dividend payout to its shareholders on a quarterly-basis):

1. Apple Inc. (NASDAQ:AAPL)

Apple Inc. generates income from the sale of a range of technology products, including the Apple iPhone, Mac, iPad, as well as wearables and accessories (including AirPods, AirTag, Apple TV, Apple Watch.) This is on top of revenue generated from selling a variety of related services, including Apple TV+, Apple Music, Apple Arcade, Apple Books, and Apple Pay.

Over the last 5 years (between FY2017/18 and FY2021/22 – it has a financial year end on the last Saturday of September), its total revenue have grown from $265.6bn to $394.3bn (a compound annual growth rate [CAGR] of 8.2%), and its net profit went up from $59.5bn to $99.8bn (a CAGR of 10.9%.)

Dividend payout over the last 5 years grew at a CAGR of 4.9%, as follows:

FY2017/18: $0.71
FY2018/19: $0.76
FY2019/20: $0.81
FY2020/21: $0.87
FY2021/22: $0.90

Based on its closing price of $165.56 (on 13 April 2023), and its latest full-year dividend payout of $0.90, the dividend yield is 0.5%.

2. Abbott Laboratories (NYSE:ABT)

Abbott Laboratories is in the business of healthcare, where its business includes the selling of generic medicines (where they are #1 in pancreatic enzyme deficiency treatment, progesterone hormone therapy, and vertigo treatment), medical devices (for diabetes, cardiovascular care), diagnostic products (where they are #1 in point-of-care testing, as well as in blood and plasma screening), and nutritional products (including paediatric and adult nutritional products such as Similac and Ensure.)

Revenue over the last 5 years (between FY2018 and FY2022 – the company has a financial year end every 31 December) have improved from $30.6bn to $43.7bn (a CAGR of 7.4%), while its net profit soared from $2.4bn to $6.9bn (a CAGR of 23.5%.)

Over the last 5 years, the company’s dividend payout have grown at a CAGR of 10.6%, as follows:

FY2018: $1.16
FY2019: $1.32
FY2020: $1.53
FY2021: $1.82
FY2022: $1.92

Based on its closing price of $103.61 (on 13 April 2023), and its latest full-year dividend payout of $1.92, the dividend yield is 1.9%.

3. Best Buy Co. Inc. (NYSE:BBY)

With more than 1,000 stores in the United States, Canada, and Mexico, as well as through its online platform, Best Buy Co. Inc. retails a range of technology products and services – including computers, mobile devices, home entertainment systems, appliances, and smart home devices.

The company’s key financial performances over the last years (between FY2018/19 and FY2022/23 – it has a financial year ending on the Saturday closest to 31 January) is as follows: its total revenue grew from $42.9bn to $46.3bn (a CAGR of 1.5%.) However, its net profit went up from $1.5bn in FY2018/19 to $2.5bn in FY2021/22, before falling sharply to $1.4bn in FY2022/23.

Dividend payout over the last 5 years have grown at a CAGR of 14.4%, as follows:

FY2018/19: $1.80
FY2019/20: $2.00
FY2020/21: $2.20
FY2022/22: $2.98
FY2022/23: $3.52

Based on its closing price of $73.19 (on 13 April 2023), and its latest full-year dividend payout of $3.52, the dividend yield is 4.8%.

4. Comcast Corporation (NASDAQ:CMCSA)

Comcast Corporation is a global media (through NBCUniversal – a media and entertainment company that operates a wide range of businesses, including broadcast and cable TV networks, film studios, and theme parks) and technology company (through Comcast Cable – one of the largest cable TV and internet service providers in the United States.)

In terms of its financial performances over the last 5 years (between FY2018 and FY2022 – it has a financial year ending every 31 December), while its total revenue growth have been stable (where it went up from $94.5bn to $121.4bn, a CAGR of 5.1%), its net profit have fluctuated between a low of $5.4bn and a high of $14.2bn.

However, its dividend payouts have grown at a CAGR of 7.3% over the last 5 years, as follows:

FY2018: $0.76
FY2019: $0.84
FY2020: $0.92
FY2021: $1.00
FY2022: $1.08

Based on its closing price of $38.05 (on 13 April 2023), and its latest full-year dividend payout of $1.08, the dividend yield is 2.8%.

5. Mastercard Inc. (NYSE:MA)

Mastercard Inc. is a technology company in the global payments industry that connects consumers, financial institutions, merchants, government, digital partners, businesses, and other organisations worldwide, enabling them to use electronic forms of payment through their wide range of solutions and services using their family of well-known brands including Mastercard, Maestro, and Cirrus.

Over the last 5 years (between FY2018 and FY2022 – it has a financial year end every 31 December), its total revenue grew from $15.0bn to $22.2bn (a CAGR of 8.2%), and its net profit soared from $5.9bn to $9.9bn (a CAGR of 10.9%.)

Dividend payouts by the company have also grown at a CAGR of 13.6%, as follows:

FY2018: $1.08
FY2019: $1.39
FY2020: $1.64
FY2021: $1.81
FY2022: $2.04

Based on its closing price of $369.65 (on 13 April 2023), and its latest full-year dividend payout of $2.04, the dividend yield is 0.6%.

6. Microsoft Corporation (NASDAQ:MSFT)

Microsoft Corporation is best known for its flagship Windows Operating System, and its Office productivity suite. It also provides cloud-based services through its Azure platform. Additionally, it also retails hardware products including the Surface line of tablets and laptops, as well as the Xbox gaming console.

Both the tech company’s total revenue and net profit saw improvements every single year over the last 5 years (between FY2017/18 and FY2021/22 – it has a financial year end every 30 June), with the former growing from $110.4bn to $198.3bn (a CAGR of 12.4%), and the former skyrocketed from $16.6bn to $72.7bn (a CAGR of 34.4%.)

The company’s dividend payout in the same time period have also grew at a CAGR of 8.1%, as follows:

FY2017/18: $1.68
FY2018/19: $1.84
FY2019/20: $2.04
FY2020/21: $2.24
FY2021/22: $2.48

Based on its closing price of $289.84 (on 13 April 2023), and its latest full-year dividend payout of $2.48, the dividend yield is 0.9%.

7. Nike Inc. (NYSE:NKE)

Incorporated since 1967, Nike Inc. is a global sports apparel and footwear company that designs, develops, and sells a wide range of athletic products through its physical and online stores worldwide. Apart from its namesake brand of products, the company also sells products under their wholly-owned subsidiary brand, Converse, which designs, distributes, and licenses casual sneakers, apparel, and accessories under Converse, Chuck Taylor, All Star, One Star, Star Chevron, and Jack Purcell trademarks.

Over the last 5 years (between FY2017/18 and FY2021/22 – the company has a financial year end every 31 May), its total revenue went up from $36.4bn to $46.7bn (a CAGR of 5.1%), and its net profit soared from $1.9bn to $6.0bn (a CAGR of 25.9%.)

Dividend payouts by the company in the same time period have also improved at a CAGR of 8.8%, as follows:

FY2017/18: $0.78
FY2018/19: $0.86
FY2019/20: $0.96
FY2021/22: $1.07
FY2022/23: $1.19

Based on its closing price of $126.43 (on 13 April 2023), and its latest full-year dividend payout of $1.19, the dividend yield is 0.9%.

8. Thermo Fisher Scientific Inc. (NYSE:TMO)

Thermo Fisher Scientific Inc. is the world leader in the field of scientific research and diagnostics, where they produce a wide range of products and services to customers in the life science, healthcare, and industrial markets. Some of the product offerings include laboratory equipment, consumables, chemicals, reagents, as well as diagnostic and genetic testing solutions.

In terms of the company’s financial performance over the last 5 years (between FY2018 and FY2022 – it has a financial year end every 31 December), its total revenue climbed from $24.4bn to $44.9bn (a CAGR of 13.0%), and net profit soared from $2.9bn to $7.0bn (a CAGR of 19.3%.)

Its dividend payouts over the same time period have went up at a CAGR of 12.0%, as follows:

FY2018: $0.68
FY2019: $0.76
FY2020: $0.88
FY2021: $1.04
FY2022: $1.20

Based on its closing price of $591.13 (on 13 April 2023), and its latest full-year dividend payout of $1.20, the dividend yield is 0.2%.

9. Visa Inc. (NYSE:V)

Visa Inc. is the world’s leader in digital payments, through its range of credit, debit, and prepaid products, along with their global ATM network. Since the company’s inception in 1958, they have facilitated commerce across more than 200 countries and territories among a global set of consumers, merchants, financial institutions, businesses, strategic partners, and government entities.

Looking at its financial performance over the last 5 years (between FY2017/18 and FY2021/22 – it has a financial year end every 30 September), total revenue have gone up from $20.6bn to $29.3bn (a CAGR of 7.3%), and its net profit have improved from $10.3bn to $15.0bn (a CAGR of 7.8%.)

Dividend payouts by the company in the same time period have also went up at a CAGR of 11.3%, as follows:

FY2017/18: $0.88
FY2018/19: $1.05
FY2019/20: $1.22
FY2020/21: $1.28
FY2021/22: $1.50

Based on its closing price of $232.69 (on 13 April 2023), and its latest full-year dividend payout of $1.50, the dividend yield is 0.6%.

Closing Thoughts

Among the 9 US-listed companies that pay out increasing dividends to its shareholders over the last 5 years, the yield of Best Buy Co. Inc. was the highest at 4.8%. However, quite a number of companies have dividend yields of less than 1.0% (including Apple Inc., Mastercard Inc., Microsoft Corporation, Nike Inc., Thermo Fisher Scientific Inc., and Visa Inc.)

Another thing to note is that, if you are a Singapore investing in any of the US companies, all dividend payouts are subject to a 30.0% withholding tax – meaning the dividends you receive will be 30.0% lesser.

With that, I have come to the end of my post – do note that the contents above is not a recommendation to buy any of the companies. You’re strongly advised to do your own due diligence to understand more about the company before you make any investment decisions.

Disclaimer: At the time of writing, I do not have shares of any of the 9 companies shared above.

Launch Event for My First Book: building your REIT-irement portfolio

After months of hard work, my first book, 'Building Your REIT-irement portfolio' is finally ready! In this easy-to-follow 178-page guide, you'll learn everything you need to know about building a REIT portfolio that can provide for you in your retirement years. You can check out a preview of the book here.

I'm extremely thankful to the team at InvestingNote and ShareInvestor for their help to organise a book launch event for me on Tuesday, 26th September 2023, from 6:00pm to 8:00pm at their office in New Tech Park.

For more details and to RSVP (seats are extremely limited), click on the link below:

Click here for more details on the book launch event and RSVP here...