For many investors, dividend stocks are the number one choice for supplementing income. With a clever selection, it is even possible to receive dividend payments every month. But more important is that the payouts increase in the long term so that the monthly income continues to increase year after year. Here are two companies that have raised their dividends this year and have the potential for more.
Adidas
Adidas was caught off guard by the sudden lockdown last year. Worldwide retailers had to close their doors for a while. That is why the group lost a large part of its sales within a very short period of time. At the same time, for a short period of time it was extremely difficult to obtain liquidity in the markets.
Therefore, Adidas had to fall back on a loan from KfW, but the conditions were tough. Because only after full repayment of the loan was Adidas allowed to distribute a dividend to its investors. Last year, Adidas had to temporarily suspend the dividend.
Since the situation relaxed a little relatively quickly, Adidas was able to close the financial year with a decent profit of more than 400 million euros despite all the circumstances. The KfW loan has now also been repaid, clearing the way for dividend payments. This year Adidas has therefore again paid a whopping dividend of 3.00 euros per share. It is already clear where the journey will take us in the coming years. Because in the first quarter of the current year alone, Adidas has already posted earnings of EUR 2.86 per share. It is therefore to be expected that the dividend will continue to rise sharply in the coming years.
SAP
With the SAP share, too, one had to briefly worry last year whether at least the traditional dividend increase could be canceled. With some delay, the consequences of the pandemic hit SAP very hard in the summer. The outlook for the coming years has therefore been revised downwards. In the face of this news, the stock has lost almost a quarter of its value in just one day. A price drop from which the share has not yet fully recovered (as of June 4, 2021).
Despite everything, the numbers for the last financial year looked anything but bad. Although sales fell slightly compared to the previous year, profit rose slightly. And an important point for the future of the group is the proper development of the cloud business. In this area, sales could even be increased by 17% compared to the previous year.
Thanks to the overall good figures, the dividend was increased sharply to 1.85 euros per share. This is now the eleventh dividend increase in a row. The payout has more than doubled since 2010 and if everything goes according to plan, the trend is likely to continue in the future.
The article Here Are 2 Companies That Have Hurt Their Dividends First appeared on The Motley Fool.
Our top niche share with the potential to become a technology star
Every Amazon of tomorrow starts small. Our Top small cap for 2021, which excites many of our analysts, serves an important and rapidly growing market that is even more important in times of corona prevention.
The number of data breaches and hacking attacks continues to increase, so protecting yourself against them is becoming increasingly important. Our top niche share helps companies with the login management and data security of their employees, no matter where they work.
This is particularly important when working from home. This is shown by the strong numbers of this top recommendation:
- since 2016 annual 58% sales growth
- the operating cash flow has increased eightfold since 2019
- a spectacular takeover for USD 6.5 billion ensures further growth
Dennis Zeipert has no position in any of the stocks mentioned. The Motley Fool recommends SAP.
Motley Fool Deutschland 2021
Foto: Getty Images
–
