3 Dividend Stocks That Have Announced Double-Digit Increases to Their Payouts This Year

Dividend stocks that raise their payouts regularly can be extremely valuable investments to hold for the long term, as their rising income can offset the effects of inflation. While many dividend growth stocks boast about long streaks, it's also important to consider the rate of their increases. A company could, after all, raise its dividend by a penny to keep its streak going, and it would still technically be considered a dividend growth stock.

The three stocks listed here have made significant, double-digit increases to their dividend payments this year. American Express (NYSE: AXP), TJX Companies (NYSE: TJX), and Costco Wholesale (NASDAQ: COST) have recently made announcements that dividend investors are sure to love, reminding them of why these are great stocks to own for the long haul.

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Over the years, credit card giant American Express has demonstrated the resiliency and stability of its business. By focusing on a more affluent customer base, its cardholders are in better financial shape than others, which is evident in the company's consistently strong results. During the first quarter of 2026, the company's revenue rose by 11%, and its profits increased by 15%, even as the economy endured rising oil prices.

Earlier this year, the company announced its Board of Directors had approved a generous 16% increase to the quarterly dividend. Going forward, shareholders will receive a quarterly dividend of $0.95 per share, which equates to a yield of 1.2%, slightly higher than the S&P 500 average of 1.1%. Over the course of five years, the company has more than doubled its payout, increasing it by 121%.

American Express may not be a high-yielding stock, but its mix of stability and growth can make it an excellent all-around investment to hang on to.

At the other end of the spectrum, focusing on value rather than high-end consumers, is TJX. The off-price retailer is known for providing shoppers with value and a bargain-hunting experience through its stores, which include TJ Maxx, Marshalls, HomeGoods, and Winners.

When it reported its year-end results back in February, the numbers looked solid. Comparable store sales were positive across all its key segments for the full fiscal year (which ends in January), with the overall same-store growth rate being a solid 5%. At a time when retailers are struggling due to challenging economic conditions, TJX has shown it can still perform well.

On March 30, the company announced it would be raising its quarterly dividend by 13%. It's the 29th time in the past 30 years that TJX has boosted its payout for its shareholders, and during that stretch, it has expanded at a compounded annual growth rate of 20%. At 1.2%, TJX also offers a payout that's in line with the S&P 500 average.

Rounding out this list of dividend growth stocks is Costco Wholesale. The big-box retailer is also known for providing shoppers with value and a unique shopping experience, but unlike TJX, shoppers at its stores know they're likely coming out spending a lot more than they planned. Its warehouses are often packed, and the popularity of the business has been evident, with Costco also proving to be a resilient operation over the years.

Back in March, it posted its second-quarter results, which went up until Feb. 15. Comparable sales were solid at 7.4% over the past 12 weeks. Even when excluding the impact of foreign exchange and changing gasoline prices, the comparable growth rate was 6.7%. The key takeaway is that Costco's warehouses are popular options for consumers, even when economic conditions aren't ideal, as buying in bulk can still help people save money and stretch their budgets.

On April 15, Costco announced it would be increasing its dividend by 13%, from $1.30 each quarter to $1.47. While its yield may look incredibly thin at 0.6%, it's also a bit misleading, as Costco has paid special dividends in the past. Most recently, in 2024, it paid a special dividend of $15 per share. While these dividend payments are not predictable, they have occurred multiple times, and they certainly incentivize investors to hang on to the stock for the long term, as Costco likes to reward its shareholders.

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American Express is an advertising partner of Motley Fool Money. David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends American Express, Costco Wholesale, and TJX Companies. The Motley Fool has a disclosure policy.

3 Dividend Stocks That Have Announced Double-Digit Increases to Their Payouts This Year was originally published by The Motley Fool