Dividend Macro Overview: May 25

Our latest MaxDividends Macro Report for May 2025 is out! 🔥

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Max Dividends
May 22, 2025

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Looking for a hassle-free way to grow your portfolio? Our latest MaxDividends Macro Report for May 2025 is here, packed with insights that could transform your investing strategy.

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Dividend Macro Overview: May 25

Today's Table of Contents

  • Dividend Eagles: 3 Top-Performing Dividend Stocks of May

  • Dividend Eagles Top Stocks Updated List

  • The Most Notable Dividend Increases

  • The Most Solid Dividend Hikes

  • Dividend Macro Highlights: Global Dividend Trends

  • My Personal Stock Watchlist for May 2025

Dividend Eagles: 3 Top-Performing Dividend Stocks of April

The "Dividend Eagles List" comprises approximately 100 of the most reliable dividend-paying companies in the U.S. market, each boasting over 15 consecutive years of increasing dividends.

These companies have been meticulously selected based on stringent criteria established by the MaxDividends team.

🥉 +31.53% ROK Rockwell Automation Inc

Rockwell Automation Inc. (ROK) is a leading provider of industrial automation and digital transformation solutions.

The company designs, manufactures, and services automation equipment, control systems, and software used in manufacturing and industrial operations.

Its key offerings help businesses improve productivity, safety, and sustainability across industries like automotive, food & beverage, oil & gas, and life sciences. Rockwell operates globally with major brands including Allen-Bradley and FactoryTalk.

🥈 +33.37% BMI Badger Meter Inc

Badger Meter, Inc. makes smart metering tools that help cities, businesses, and utilities track how water moves—down to the last drop.

The company builds advanced flow measurement and control tech, like ultrasonic and electromagnetic meters, plus cloud-connected software that gives real-time insight into usage, leaks, and system performance. Their gear is used everywhere from municipal water systems to industrial plants.

Badger Meter stands out for its reliable tech, data accuracy, and focus on sustainability. With water conservation becoming a global priority, the company’s long-term strength comes from growing demand for smart infrastructure and its ability to deliver trusted, high-quality solutions.

🥇 +55.93% MCHP Microchip Technology Inc

Microchip Technology Inc. (MCHP) is a leading provider of microcontrollers, analog semiconductors, and embedded control solutions.

The company designs and manufactures integrated circuits used in a wide range of applications, including automotive, industrial, consumer electronics, and communications.

Microchip’s products help enable smart, connected, and secure systems in everyday devices and complex industrial systems.

Dividend One-Pager of the Month

A Proven Dividend Eagle 🦅

S&P Global (NYSE: SPGI) is a cornerstone of the financial world, providing credit ratings, market intelligence, and data analytics relied upon by banks, corporations, and investors globally.

In times of economic uncertainty, its services become even more critical, insulating the company from tariffs and macroeconomic headwinds. While high interest rates temporarily slowed its credit ratings business in 2022–2023, a potential rate decline could reignite growth.

💡 These stocks are undervalued. By investing in strong, undervalued companies that frequently increase their dividend rates, we benefit from dividend compounding and strong price performance—getting great businesses at a discount.

The Most Notable Dividend Increases

Parker-Hannifin (PH) - Dividend Increase: +10.40%

50+ consistent years. Proven Dividend Eagle.

Parker-Hannifin (PH), a global leader in motion and control technologies, just raised its dividend by 10.40% to $1.80 per share. That bumps the forward yield to 1.21%, with an annual dividend now at $7.20. Parker has a 69-year streak without missing a dividend increase, with a 3-year dividend growth of 17.07% and a payout ratio sitting at 29.80%.

Financially, Parker reported $5.07 billion in sales and $5.94 EPS for the fiscal Q2 2025 (ending March 31, 2025), beating Wall Street estimates (source). Margins held up strong even with tough industrial market conditions.

With this kind of consistent dividend growth, low payout ratio, and financial beat, you're looking at a company that's not just surviving — it's still flexing muscle in a rough market.

Pool Corp (POOL) - Dividend Increase: +4.00%

15+ consecutive years. Proven Dividend Eagle.

Pool Corporation (NASDAQ: POOL) stands as the world's leading wholesale distributor of swimming pool and related backyard products, operating 449 sales centers across North America, Europe, and Australia.

In Q1 2025, Pool reported net sales of $1.07 billion, a 4% decrease year-over-year. Net income declined to $53.5 million, with diluted EPS dropping 30% to $1.42 from $2.04 in Q1 2024. The company reaffirmed its full-year 2025 EPS guidance of $11.10 to $11.60 per share.

Pool offers an annual dividend of $5.00, yielding 1.63%. It has increased dividends for 15 consecutive years, with a 3-year dividend growth rate of 16.40% and a payout ratio of 46.90%.

Despite current headwinds, Pool's strong dividend track record and reaffirmed earnings guidance suggest resilience. The company's focus on maintenance-related products and strategic initiatives positions it well for potential market recovery.

Johnson & Johnson (JNJ) - Dividend Increase: +4.80%

50+ consecutive years. Proven Dividend Eagle.

Johnson & Johnson (NYSE: JNJ), the $372B healthcare beast behind everything from Tylenol to robotic surgery, just raised its quarterly dividend by 4.8%, bumping the payout from $1.24 to $1.30/share. That’s now $5.20 annually, locking in a 3.37% forward yield at the current stock price near $154.

Q1 earnings were strong: $21.89B in revenue (up 2.4% YoY) and EPS of $2.77, beating expectations. Full-year sales guidance was raised to as high as $91.8B, despite a $400M hit from tariffs.

The Most Solid Recent Dividend Hikes

  • Ares (ARES) +20.43%

  • Applied Materials +15.00%

  • CareTrust REIT (CTRE) +15.52%

  • Garmin Ltd (GRMN) +20.00%

  • JPMorgan Chase & Co (JPM) +12.00%

  • Oracle Corp (ORCL) +25.00%

  • Shoe Carnival (SCVL) +11.11%

  • Williams-Sonoma Inc (WSM) +15.79%

  • DICK'S Sporting Goods (DKS) +10.23%

  • TE Connectivity Ltd (TEL) +9.23%

🦅 Dividend Eagles List: May’25

An updated compilation of top-performing dividend stocks with 15+ years of consecutive dividend increases, known as Dividend Eagles, selected based on stringent criteria.

The Dividend Eagles Top Stocks List is a curated selection of over 100 of the most reliable dividend-paying companies in the U.S. market.

Each company on this list boasts a remarkable track record of increasing dividends for at least 15 consecutive years, reflecting their financial stability and commitment to returning value to shareholders.

Created by the MaxDividends Team. Available only on MaxDividends. Exclusive.

Key Benefits of the Dividend Eagles Top Stocks List

Consistent Dividend Growth

Companies featured have a proven history of not only paying dividends but also increasing them annually for over 15 years. This consistency can provide investors with a growing income stream, which is particularly valuable for those seeking passive income or planning for retirement.

Financial Stability

The stringent criteria ensure that only financially robust companies are included. These firms have demonstrated resilience across various market cycles, making them potentially safer investments during economic downturns.

Comprehensive Research

The list is meticulously compiled by the MaxDividends team, leveraging in-depth analysis and strict selection criteria. This saves investors time and effort in identifying high-quality dividend stocks, providing a reliable resource for building a dividend-focused portfolio.

Enhanced Portfolio Performance

Investing in companies with a strong dividend growth history can lead to superior long-term returns. Reinvested dividends and the power of compounding can significantly boost portfolio value over time.

Access to Exclusive Insights

Subscribers to the Dividend Eagles Top Stocks List gain access to regular updates, detailed company analyses, and insights into dividend trends, helping them make informed investment decisions.

These companies have been meticulously selected based on stringent criteria established by the MaxDividends team.

Created by the MaxDividends Team. Available only on MaxDividends. Exclusive.

By incorporating the Dividend Eagles Top Stocks List into your investment strategy, you align yourself with a disciplined approach focused on quality, stability, and growth.

Dividend Macro Highlights: Global Dividend Trends

The macro report is updated quarterly

The global cumulative dividend payout for Q4 2024 continued the upward trend seen in Q4 2020.

This indicates that most dividend-paying companies have weathered the impact of the 2020 crisis and successfully adapted their businesses to the new reality. As a result, they’ve been able to keep increasing their dividend payouts.

Companies paid out $371.7 billion in dividends in the fourth quarter of 2024. In comparison, companies collectively paid out $339.9 billion in Q4 2023 (Figure 1).

Regional Dividend Leaders

The top performers in dividend growth for the fourth quarter were Japan, Europe ex UK, and North America, with increases of 23.2%, 15.9%, and 8.6%, respectively.

No regions showed negative growth in dividend payments, but the weakest performance came from Asia Pacific ex Japan, with dividend growth of just 0.8%.

Figure 2: Dividend Payments in Q4 by Region. Source: janushenderson.com

U.S. Dividend Landscape (S&P 500)

Table 1. April’25. Overall performance. Source: maxdividends.com

The S&P 500 dividend yield has been cut in half over the past decade. It now stands at 1.36%, which means stock prices relative to dividends are higher than usual. As a result, the dividend yield is at record lows

Inflation's Impact on Dividends

Inflation has been rising faster than dividend growth, causing a correction in the S&P 500 dividend chart. Since mid-2022, inflation has been gradually decreasing, allowing the S&P 500 dividend chart to show a slight uptick.

However, since Q3 2024, inflation has started to rise again, leading to a renewed correction in the S&P 500 dividend chart.

Historical dividends from stocks that are part of the S&P 500 Index are shown in Figure 5.

The data is adjusted for inflation. With the current inflation rate (Figure 4), there is a gradual acceleration in the growth of dividends on the S&P 500 Index.

The previous peak was in May 2020, when the dividend was 73.09. Currently, this figure stands at 75.32.

Figure 5: S&P 500 Dividends Adjusted for Inflation. Source: multpl.com

Table 2: S&P 500 Dividends Adjusted for Inflation. Source: maxdividends.com

S&P 500 Dividend Growth

The S&P 500 dividend growth is shown in Figure 6. Over the past 32 years, the chart has been negative only three times, and all of those periods were linked to crises. Over the past month, dividend growth has outpaced inflation, reaching 6.44%.

Figure 6: S&P 500 Dividend Growth. Source: multpl.com

However, over the past 12 months, these indicators have generally followed the same trend.

For your convenience, we have prepared a PDF version of the Dividend Macro Overview. You can download and review it at any time.

My Personal Stock Watchlist for May 2025

A complete list of my top stocks currently on my radar.

I’m fully committed to strong dividend stocks, striking the perfect balance between capital growth and a rising stream of dividend income. My ultimate goal? To build a solid and ever-growing passive income for a life funded by dividends.

I share my insights, strategy, stock picks, and investment ideas on the MaxDividends blog.

Right now, I’m tracking over 50 companies, regularly updating my shortlist and main watchlist every month.

No access yet? Check your status & upgrade to Premium to join the movement. Exclusive insights await inside!

A complete list of my favorite stocks I’m currently tracking—only the best make it in.

MaxDividends Recent Events

Stock prices can be volatile, and those ups and downs often test investors' patience. That’s why having a steady income stream through dividend payments can be so appealing.

At MaxDividends, we focus on maximizing yields to make the most of dividends, helping you grow a reliable and expanding passive income.

The best part of a dividend strategy is that it works in any market, offering a steady path to wealth no matter the conditions.

Last week, we shared several new articles and dividend stock ideas—stay tuned for insights and opportunities!

My Comments

Uncertainty and Action Plan in Foggy Times

The tariff war is heating up, and market uncertainty is growing too. I’m sure many of you have noticed how stock prices swing back and forth depending on the narrative. Investors are hoping for a more positive backdrop.

Let’s be realistic and accept that markets fluctuate, and we cannot control that. Businesses evolve. Situations change. Time moves forward. It has always been this way, and it always will be.

Overcoming the Fear of the Unknown

Here’s how I personally think about it

1) Keep Investing, but Focus on Quality

No matter how you invest today, continue doing so. The key factor to watch is the quality of your investments. If you are unsure about individual companies, consider switching to broad market index funds.

2) The Best Opportunities Come in Downturns

The most profitable opportunities emerge during declines, not during periods of growth. It’s impossible to perfectly time the market.

My passive income keeps increasing. In my investments, I follow the MaxDividends strategy. You can read more about it here:

My strategy is based on the MaxDividends concept and is incredibly passive. Most of the time, I do nothing—just watch my dividend income grow.

I track all my results in the MaxDividends App—it provides a clear, structured view of every portfolio.

My Strategic Thoughts & Plans for 2025

Main

For the past 20 years, I’ve aggressively invested my time and resources into building businesses, which have been my main source of capital. In recent years, my stock investments have further grown that capital.

This year, I’m turning 40. As a father of three, I want to stay involved in business and investing, but on my own terms. My goal is to take on a more strategic role, free up more time for myself and my family, and pursue interests I’ve put off for years. Investing allows me to do just that.

In 2025, I’m transitioning to fully living off dividends. My primary capital and main portfolio—filled with strong growth companies and high-dividend stocks—will fund this shift.

Q2 2025

Starting in Q2 2025, alongside my regular $12,000 experiment purchases, I’ll demonstrate how I live off dividends using the growing passive income from my main stock portfolio.

Currently, my portfolio is worth approximately $1,330,000. Since last year, I’ve stopped investing in pure growth stocks in this portfolio and shifted toward dividend growth and high-yield dividend stocks.

By the end of 2024, my plan was to further transition toward dividend income—and I executed that plan earlier in January’25.

While the market allows, I took advantage of growth stock opportunities and reduced my allocation to them, further increasing my share of high and growing dividend stocks. Given my long-term plans, this move fully aligns with my overall goal of living off dividends.

Right now, 90% of my core portfolio consists of high-yielding, dividend-growing stocks. My average monthly dividend income is now approaching $7,000. For now, I’ll continue reinvesting these dividends to accelerate the growth of both my dividends and passive income.

💡 My strategy is based on the MaxDividends Investing Concept and Dividend Eagles, and it’s incredibly low-maintenance. Most of the time, I just sit back and watch my passive income grow.

I’ll share with you simple, proven, and effective methods for selecting built-to-last companies—led by generations of exceptional leaders—that pay consistently growing dividends. These companies provide ever-expanding passive income, allowing you to focus on what you love and spend time with the people who matter most.

✅ This is a time-tested, results-driven approach that leads to predictable success.
By focusing on strong, reliable companies that pay above-average dividends and steadily increase payouts over time, we set the foundation for consistent dividend growth and financial freedom.

My Plans for This Week

This week, I plan to observe and act as usual—sticking to the plan by buying strong companies with reliable dividend growth and solid yields at the time of purchase.

I can’t say exactly how I’ll make my selections yet, because the strength of this week’s rally is still unclear. In any case, I’d like to secure better prices and terms than what the market currently offers.

I also plan to reinvest my May dividends this week, since all expected payments for the month have already been received. I’ll reinvest them right away, if possible.

When it comes to app development, our current focus is entirely on the behind-the-scenes part of the project. We're building out our internal dividend data management system to ensure the highest quality of dividend information on our end.

It’s a big and essential task—after all, we’re building the best dividend investing app in the world. And we are almost done.

Happy dividends for all the holders!

For your convenience, we have prepared a PDF version of the Dividend Macro Overview. You can download and review it at any time. 🙌

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If you have any questions, feel free to email me at: [email protected]

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