Several major large-cap stocks, each with a market capitalization of over $30 billion, have recently announced notable increases to their quarterly dividends. These updates, aligned with recent shareholder meetings and strategic decisions, reflect efforts to enhance shareholder value and demonstrate financial strength.
Read on to see which companies are boosting their payouts and what these changes could mean for investors.
UNH: Raises Dividend 5%, Shuts Down “Golden Parachute” Oversight
First up is the goliath of the healthcare providers and services industry, UnitedHealth Group (NYSE: UNH). The stock is by far the most valuable in its industry worldwide, with a market capitalization of around $284 billion as of the June 13 close. In a June 4 update for investors regarding its annual shareholder meeting, UNH announced the authorization of a $2.21 per share dividend. This marks an approximately 5.2% increase in the company’s previous dividend.
The company will pay this new dividend on June 24 to common stock shareholders who are on record as of the close of business on June 16. As of the June 13 close, the stock has an indicated annual dividend yield of approximately 2.8%. This ranks second-highest among stocks with market capitalizations above $50 billion in their industry. Only CVS Health’s (NYSE: CVS) yield is higher at around 4%.
At the annual meeting, shareholders also rejected a proposal that would require a vote on “excessive golden parachutes." Golden parachutes are large severance packages given to high-ranking executives in the event of termination. This decision means that shareholders will not vote on these severance packages. The company’s Board of Directors will continue to exercise control over these decisions.
FDX: Announces Fifth Straight Annual Dividend Increase, Yield Still Trails UPS
Next up is one of the world’s biggest players in the air freight and logistics industry, FedEx (NYSE: FDX). The stock is one of only nine in this industry, with a market capitalization of $10 billion. It is the second-largest in the United States behind the United Parcel Service (NYSE: UPS). The tight consolidation within this industry makes sense, as scale is extremely important for operating profitability.
FedEx announced on June 9 that it has raised its annual dividend by 5% to $5.80 per share. This is the fifth year in a row that the company has increased its annual dividend. The company understandably tends to stop raising its dividend during recessions, doing so after both the Financial Crisis and the COVID pandemic. These events hit companies like FedEx particularly hard, as consumer spending is key to their success.
The company’s next $1.45 dividend will be payable on July 8 to stockholders of record as of the close of business on June 23. This annual dividend gives the stock an indicated dividend yield of approximately 2.6% as of the June 13 close. This is markedly below the approximately 6.5% yield offered by UPS.
GRMN: Strong Performer Boosts Dividend by 20%; Wall Street Forecasts Range Widely
Last but not least is consumer discretionary stock Garmin (NYSE: GRMN). The maker of smartwatches and fitness wearables has increased its quarterly dividend to $0.90 per share. This is a substantial increase over the company’s previous dividend of 20%. The June 6 announcement comes as a result of the firm’s 2025 annual shareholders’ meeting.
The increased dividend will be payable on June 27 to shareholders of record on June 16. The company’s annual payout of $3.60 per share gives the stock an indicated dividend yield of approximately 1.8% as of the June 13 close. This puts the stock’s yield solidly above the 1.2% figure held by the S&P 500 Index. It is also notably higher than much of the consumer discretionary sector. The Consumer Discretionary Select Sector SPDR Fund (NYSEARCA: XLY) has a dividend yield of only around 0.7%.
Garmin has been a strong performer in the relatively recent past, providing a total return of approximately 118% over the last three years. The most recent Wall Street price target updates tracked by MarketBeat paint a muddied picture going forward. JPMorgan’s $215 price target implies around 6% upside from the June 13 closing price. However, Morgan Stanley's and Barclays' price targets indicate downside of 15% and 25%, respectively.
Overall, raising dividends is an important action these companies are taking to increase the attractiveness of their stock to income-oriented investors. Garmin’s huge dividend increase and strong yield, which is much higher than its sector, stand out. However, the differing perspectives on Wall Street regarding the stock's future suggest that the downside risk is growing after a significant run-up.
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