Actions that pay dividends have been gaining popularity among investors due to their long -term advantages. According to Jeremy Zirin, who leads the North Capital Team -American for private customers of the UBS Asset Management, companies with a constant record of increasing dividends are a smart choice for investors seeking a balanced approach to the current market environment. When the markets fell in April after President Donald Trump announced new fare policies, investors gravitated to high -performance dividend actions. However, as commercial tensions began to relieve -and negotiations advanced, the markets recovered. Stocks increased especially after the United States and China agree to temporarily reduce rates. Made the following comment on dividend actions:
“Higher dividend performance strategies are usually better when the markets are in a real crisis and decrease, but if there are more sting, more volatility and potentially upside down … you will not want to be too defensive.”
Historically, companies that constantly increase their dividends have tended to be less volatile and often obtained stronger returns than the larger market, including reference points such as the weight index as well as S&P. According to a Guggenheim report, from May 2005 to December 2024, companies that started or increase their dividends generated an average annual return of 10.5%. However, companies that reduced or suspend their payments recorded only 5.5% per year. The global market returned 10.4% during this period, slightly behind dividend producers. The report also emphasized that dividend growth strategies have had good performance historically in both increasing and fall markets, which makes them an attractive option for long -term investors and protection against their disadvantage.
According to a Global S & P report, the growth of global dividend payments had been reduced since postcóvid recovery, but this trend was reversed last year. By 2024, the growth rate unexpectedly accelerated up to 8%, and shareholders received about $ 180 million more than the previous year. This increase was a surprise, given the persistent geopolitical and economic challenges. The report also stated that various sectors and regions saw initiations of registered dividends, including the technology, media and telecommunications sector of the United States (TMT), the banks of Italy and Spain, the Japan automotive industry and a general increase in continental China payments. Even with extreme priced fluctuations, the payments of dividends in the oil and gas sector remained strong. In front, the report suggested that this high level of dividends is likely to remain constant, and the world payments are expected to remain at $ 2.3 trillion by 2025.
With the growing appetite of investors due to actions that pay dividends, many companies have responded by gradually increasing their dividend payments. A report by Janus Henderson revealed that the payments of global dividends reached a record of $ 1.75 trillion by 2024, reflecting a 6.6% increase in the underlying manner. The overall growth rate occurred by 5.2%, slightly retained by a drop in unique special dividends and the stronger US dollar effect. Of the 49 countries treated in the report, 17, including large economies such as the United States, Canada, France, Japan and China, placed high dividend levels. In total, 88% of companies collected or maintained their dividends constantly during the year.
The JM Smucker Company (SJM): Among the best growth actions of high -yielding dividends
A wholesale who distributes peanut butter, spreads from fruit and propagates to a retailer.
For this list, split shares were analyzed with yields with more than 3% from May 13. From this group, we perfected our selection criteria by identifying actions with a growth streak of dividends of 10 years or more. Actions are classified in ascending order of their dividend returns.
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Dividend performance from May 13: 3.87%
The JM Smucker Company (NYSE: SJM) is a north -American food company based in Ohio. The company manufactures a wide range of food and beverage products. In its recent quarterly updating, the company emphasized the importance of its recruitment strategies in the midst of increasing goods prices, especially green coffee, to help safeguard the margins. The company also pointed out unique factors, such as deterioration of brands and interruptions in the supply chain, which adversely affected their global operating performance and contributed to mixed results.
For the third quarter 2025, the JM Smucker Company (NYSE: SJM) reported $ 2.2 billion revenue, with a decrease of 2% year -on -year. He recorded a net loss of $ 6.22 per diluted quota, mainly due to the costs of deterioration of non -needs related to his sweet business in the oven. However, in a tight way, the results per action increased by 5% to $ 2.61. The gross benefit increased $ 55 million, or 7%, thanks to improving prices, cost efficiencies and the benefits of the acquisition of host brands, although the lower volumes and recent divestments partially compensate for these benefits.
Although the JM Smucker Company (NYSE: SJM) is a strong dividend company, its cash position was successful this quarter. Free cash flow declined significantly to $ 151.3 million, 39.3% of the previous year, due to time differences in tax payments and the increase in labor capital needs. The operational cash flow also decreased, emphasizing the need for more disciplined cash management to be advanced. Despite these challenges, SJM is still attractive to income -focused investors, supported by a 23 -year -old dividend growth streak. Currently, it offers a quarterly dividend of $ 1.08 per action and has a dividend performance of 3.87%, from May 13.
Usually SJM Ranks 15th In our list of the best growth actions of high -yielding dividends. Although we recognize the potential of SJM as an investment, our conviction lies in the belief that some deeply undervalued dividend actions have a greater promise to obtain higher yields and do it in a shorter period. If you are looking for a deeply undervalued dividend stock that is more promising than SJM, but which sells its earnings ten times and grows its earnings on double digit rates per year, see our report on the Cheap dividend actions of dirt.
