3 Dividend Stocks Up 8%, 16%, and 17% So Far in 2024: Buy in December

As the year 2024 draws to a close, investors are looking for opportunities to boost their portfolios with strong dividend stocks. Three companies have stood out this year, with dividend increases of 8%, 16%, and 17% respectively. American Express, Mastercard, and Visa have all reported impressive earnings growth and dividend hikes, making them attractive options for investors seeking income and growth.

American Express (AXP) has increased its dividend by 8% so far in 2024, marking its 10th consecutive year of dividend growth. The company's strong financial performance, driven by its closed-loop network, has allowed it to consistently return capital to shareholders. AXP's revenue has grown by 10% year-over-year, and the company has lowered its outstanding shares by nearly 9% over the past five years. This has led to a compound annual growth rate for revenue of 10.8% over the past five years, compared to AXP and Visa (V), which stand at 9.7% and 9.4%, respectively.

Mastercard (MA) has also reported impressive dividend growth, with a 16% increase year-to-date. The company's open-loop network allows it to profit from transaction volume without taking on credit risk. MA's revenue has grown by 13% year-over-year, and the company has lowered its outstanding shares by nearly 9% over the past five years. This has resulted in a compound annual growth rate for revenue of 10.8% over the past five years, compared to AXP and V, which stand at 9.7% and 9.4%, respectively.

Visa (V) has seen the most significant dividend increase among the three companies, with a 17% hike so far in 2024. Like Mastercard, Visa operates as an open-loop network, charging transaction fees and managing loans. V's revenue has grown by 13% year-over-year, and the company has lowered its outstanding shares by nearly 9% over the past five years. This has led to a compound annual growth rate for revenue of 10.8% over the past five years, compared to AXP and MA, which stand at 9.7% and 9.4%, respectively.



These dividend stocks have shown impressive growth so far in 2024, with payout ratios of 8%, 16%, and 17%. To evaluate their potential for further growth, consider the following factors:

1. Dividend history: These stocks have consistently increased their dividends over the past few years, indicating a strong commitment to returning capital to shareholders.
2. Earnings growth: The companies behind these stocks have reported strong earnings growth, which supports higher dividends in the future.
3. Payout ratio: While these stocks have high payout ratios, they are still below their historical averages and the industry average. This suggests room for further growth in dividends.
4. Valuation: These stocks are trading at reasonable valuations, providing a buffer against potential market downturns.



In conclusion, American Express, Mastercard, and Visa have all reported strong dividend growth in 2024, with increases of 8%, 16%, and 17% respectively. These dividend stocks have shown impressive performance and have room for further growth, given their consistent dividend history, strong earnings growth, high but not excessive payout ratios, and reasonable valuations. Investors looking for income and growth should consider adding these stocks to their portfolios in December.