While finding stocks that are boosting dividends is good, it is even better when their dividend yields are already higher than the market. Generally speaking, many consider the S&P 500 Index to be “the market."
The S&P 500 has a dividend yield of just under 1.3%. Below are four stocks that already had a dividend yield above 1.3% and recently announced dividend raises that help extend this lead even further. All dividend yield and other metrics use data as of the Mar. 28 close unless otherwise indicated.
Colgate-Palmolive: Raises Dividend and Freshens Up Its Share Buyback Capacity
First up is Colgate-Palmolive (NYSE: CL). The consumer staples company recently announced a moderate increase to its quarterly dividend of 4%. The company will pay the new $0.52 per share dividend on May 15 to shareholders of record on Apr. 17. Now, the company boasts an indicated dividend yield of 2.2%. The indicated dividend yield metric assumes that the next quarterly payment, $0.52 in this case, will be constant over the next four quarters. This is the case for most firms that issue dividend increases.
In addition to this dividend increase, Colgate-Palmolive announced a new $5 billion share repurchase authorization. This is fairly significant compared to the firm’s overall value, which is around 6.6% of its market capitalization. The company has a strong track record of using its share repurchase authority.
Over the past 10 years, it has spent an average of $1.4 billion a year on buybacks. Buyback activity was particularly high in 2024, coming in at over $1.7 billion. Overall, Colgate-Palmolive’s historical buyback pace suggests it will take the company around three years to complete this buyback program.
FirstEnergy: +4% Yield With Strong Payout Commitment
FirstEnergy (NYSE: FE) is an electric utility company that is also providing a moderate increase to its dividend of just under 5%. The company expects to pay out $1.78 per share in dividends in 2025. The firm notes that this expected annual dividend payment is an increase of 11% over 2023 levels. The next dividend, just under $0.45 per share, will be payable on June 1 to shareholders of record at the close of business on May 7.
The company has a strong commitment to paying out its earnings in the form of dividends. It aims for a payout ratio, which measures the percentage of its earnings paid out as dividends, of between 60% and 70%. This is a fairly high figure but it isn’t unsustainable. It is on par with the payout ratios of most U.S. large-cap electric utilities. Based on the $1.78 annual dividend per share figure, the firm has a rock-solid dividend yield of 4.4%.
Qifu: Chinese Stock With Plans for Frequent Dividend Increases
Next is a Chinese credit-tech stock that has somewhat taken the market by storm since the beginning of 2024, Qifu Technology (NASDAQ: QFIN). Since then, the mid-cap stock is up 187%. When adding in its dividend payments, it has provided a total return of 202%. The company has announced a large increase to its dividend of nearly 17%. The $0.70 per American Depository Share (ADS) dividend will be payable “around Jun. 2” to shareholders of record as of the close of business on Apr. 23.
Qifu pays dividends on a semi-annual basis, and this marks the fourth consecutive period in which the firm has raised its dividend. The company says it intends to continue gradually raising its dividend semiannually. Assuming a 10% increase to the dividend following the $0.70 payment, Qifu would pay out $1.47 per ADS in 2025. This would give the firm a very strong dividend yield of 3.2%.
Signet Jewelers: Announces a Shiny New Dividend Increase
Last up is Signet Jewelers (NYSE: SIG). This stock has taken a severe hit in 2025, dropping nearly 27%. The diamond seller lowered guidance for Q1 after it started to see unexpectedly bad holiday sales performance. However, the stock did recover significantly after beating Q1 estimates and unveiling a new company-wide strategy.
Ultimately, the stock’s extensive drop in 2025 helped raise its dividend yield above that of the S&P 500. Its dividend yield was also aided by the firm announcing a 10% increase in its next quarterly dividend. The $0.32 per share dividend will be payable on May 23 to shareholders of record on Apr. 25. The stock now has a dividend yield of nearly 2.2%. The firm also maintains a massive buyback capacity of $723 million, equal to almost 29% of its market capitalization.
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