Investments that combine consistent income with solid balance sheets can produce both immediate and long-term income for investors. Dividend stocks can also provide a beneficial cushion against the effects of market downturns on growth stocks — a top concern as U.S. stocks struggle to see price appreciation in mid-March. 

While few stocks are required to pay dividends, it’s important to note that not every stock that elects to offer a portion of profits to shareholders is a suitable long-term hold. A dividend trap occurs when a company with less-than-ideal fundamentals offers a high dividend compared to share prices. The company then cuts dividends after attracting new investors, which usually causes share prices to plunge. 

Not sure which dividend shares are best for portfolio building? These three stocks have just raised annual dividends without seeing a cut in their analyst ratings.

Devon Energy Supports Dividend With 11% Cash Flow 

Energy stocks have long been top investor choices for dividend payments, and Devon Energy (NYSE: DVN) is no exception. The company currently offers a solid 2.81% dividend yield after a recent quarterly payment bump to $0.24 per share.

This new payout rate will begin on its next payout date of March 31st. 

Analyst forecasts for Devon Energy are optimistic, with analysts indicating that the company’s 21.05% payout ratio is reasonable. Analyst consensus ratings give this share a Moderate Buy rating, with an anticipated one-year price increase of 42%.

Devon Energy currently pays out just 11.25% of its free cash flow as dividends, which means that future dividend increases are likely if earnings remain consistent. 

Dell Shares Feature 2.32% Yield, Newly Lowered P/E Ratio

Dell Technologies (NYSE: DELL) has had a rough year in terms of share prices, with its stock falling more than 23% in the last year. This led to a new 50-day low share value of around $91 per share. Despite these falling prices, analyst forecasts for Dell remain optimistic, with consensus ratings giving DELL a Moderate Buy with an anticipated 56% recovery in share prices. 

Part of this optimism may be coming from Dell’s price-to-earnings ratio, which has fallen to 15.96 due to the current dip in share prices. Its dividend payments have remained consistent, with shares currently offering a 2.32% dividend yield supported by a moderate 33.76% payout ratio. The company currently pays about 25% of its free cash flow as dividends—another positive point in the column of anticipated long-term dividend increases. 

Dell is also one of the top tech and computer stocks for large-cap investors looking for dividend growth. Q1 of 2025 saw one of the biggest percentage increases in dividend payments for DELL investors in the last two years. Per-share payouts increased from $0.45 per share to $0.53 per share, a 17% increase in dividend income compared to last year if paid consistently between quarters. 

OXY Attracts Institutional Investor Attention 

Despite a year of share prices trending downward, Occidental Petroleum (NYSE: OXY) is once again attracting the attention of both retail and institutional investors. Institutional buying increased from $45 million to more than $5.6 billion, a signal that could indicate that investment analysts believe that the worst is over for OXY.  

Investment analysts give OXY a hesitant Hold rating but predict that shares may be trading below their fair value. Consensus estimates put OXY shares at a one-year price target of $60.86, representing a 28.54% potential upside. When combined with its sub-20 P/E ratio and recent EPS data (which came in above analyst expectations), current price suppression may present a buying opportunity for long-term investors. 

Occidental Petroleum is also an exceptionally notable dividend stock. While its dividend yield of 2.03% isn’t particularly special, the company has seen a three-year annualized dividend growth of 180.20%. This spike in payout is supported by a 39.34% payout ratio, which is considered average among other oil and gas stocks. Even better, the company pays out less than 10% of its cash flow as dividends, meaning that recent increases are unlikely to represent a trap. 

In its most recent dividend increase announcement, OXY raised its quarterly payout from $0.22 per share to $0.24 per share. If this is continued through all four quarters, it will represent a 9% increase in dividend income over 2024. 

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