4 Stocks With Above Market Yields That Are Raising Dividends

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.

Companies Mentioned in This Article: