Strengthening Shareholder Rewards: A Look at Large-Cap Companies that Boosted Dividends in the Last Quarter Q2 2023

Ovintiv increased their dividend by 20% last quarter Q2 2023 and these 14 other large-cap companies announced similar plans


OVV: Ovintiv Inc.

Industry: Oil & Gas E&P

Ovintiv Inc. (OVV) recently announced a definitive purchase agreement to acquire assets of Black Swan Oil & Gas, PetroLegacy Energy, and Piedra Resources in a cash and stock transaction valued at approximately $4.275 billion. This strategic acquisition will add around 1,050 net 10,000 foot well locations to Ovintiv's Permian inventory and approximately 65,000 net acres in the core of the Midland Basin, enhancing Ovintiv Inc.'s presence in the region.

The acquisition was financed through a combination of cash on hand, proceeds from the pending sale of its Bakken assets, borrowings, and new debt financing. Following the successful transaction, Ovintiv Inc.'s Board of Directors declared a 20% increase in Ovintiv Inc.'s base dividend payment on an annualized basis, reflecting Ovintiv Inc.'s commitment to returning at least 50% of post-base dividend Non-GAAP Free Cash Flow to shareholders through buybacks and/or variable dividends.

With the addition of the acquired assets and a streamlined portfolio focused on premier North American basins, Ovintiv Inc. expects significant accretion across key operational and financial metrics. Ovintiv Inc. anticipates driving more than 25% higher cash returns per share over the next twelve months following the close of the transactions and more than 40% higher cash returns per share in 2024. Overall, Ovintiv Inc.'s outlook appears positive, and the dividend increase reflects Ovintiv Inc.'s confidence in its ability to generate strong returns for shareholders.

Ovintiv Inc., together with its subsidiaries, engages in the exploration, development, production, and marketing of natural gas, oil, and natural gas liquids. Ovintiv Inc.'s principal assets include Permian in west Texas and Anadarko in west-central Oklahoma; and Montney in northeast British Columbia and northwest Alberta. Ovintiv Inc.'s other upstream assets comprise Eagle Ford in south Texas, Bakken in North Dakota, and Uinta in central Utah; and Duvernay in west central Alberta, Wheatland in southern Alberta, Horn River in northeast British Columbia, and Deep Panuke in offshore Nova Scotia. Ovintiv Inc. is based in Denver, Colorado.


Industry: Insurance—Diversified

American International Group, Inc. (AIG) recently reported strong financial results for the first quarter of 2023, showcasing AIG's ability to deliver high-quality outcomes for stakeholders and improve profitability. Under the leadership of AIG Chairman & CEO Peter Zaffino, American International Group, Inc. demonstrated its focus on underwriting excellence and volatility management, which enabled sustainable growth and underwriting profitability over the long term.

The dividend increase of 12.5% to $0.36 per share, starting in the second quarter of 2023, reflects AIG's confidence in its future earnings power. American International Group, Inc.'s capital management strategy and strong performance in its General Insurance and Life and Retirement businesses contributed to the decision to increase dividends.

AIG's General Insurance segment saw positive growth in net premiums written, combined ratios, and underwriting income, with a 10% increase in constant dollar net premiums driven by growth in North America Commercial and International Commercial. On the other hand, AIG's Life and Retirement business experienced significant growth in premiums, deposits, and base investment yield, indicating a promising future as a standalone company.

American International Group, Inc. is a global insurance provider offering a wide range of products for commercial, institutional, and individual customers. American International Group, Inc.'s General Insurance segment provides various insurance products, including general liability, property, and specialty coverages, tailored to meet specific risk needs. American International Group, Inc.'s Life and Retirement segment offers annuities, mutual funds, and life insurance options, supported by financial planning and advisory services. With a legacy spanning back to 1919, American International Group, Inc. is headquartered in New York, New York, and serves clients both domestically and internationally.


Industry: Insurance—Property & Casualty

The Travelers Companies, Inc. recently reported strong financial results for the first quarter of 2023, with net income of $975 million and core income of $970 million. Despite facing higher catastrophe losses and lower net favorable prior year reserve development compared to the previous year, The Travelers Companies, Inc. achieved a solid underlying underwriting gain, driven by a one-time tax benefit and higher net investment income. This quarter's performance was particularly impressive considering the high level of severe weather activity across the United States.

The company's success in all three segments—Business Insurance, Bond & Specialty Insurance, and Personal Insurance—contributed to a 12% increase in net written premiums, reaching a record $9.4 billion. Business Insurance saw 15% growth in net written premiums, while Bond & Specialty Insurance remained stable, and Personal Insurance achieved a 12% increase, primarily driven by higher pricing.

Moreover, The Travelers Companies, Inc. demonstrated its confidence in the future by increasing its quarterly cash dividend by 8% to $1.00 per share. This marked the 19th consecutive year of dividend increases, reflecting The Travelers Companies, Inc.'s strong financial position and positive outlook for its business. Additionally, the Board of Directors authorized an additional $5 billion of share repurchases, indicating The Travelers Companies, Inc.'s commitment to creating shareholder value.

The Travelers Companies, Inc. is a leading insurance provider in the United States and globally. Operating through three segments - Business Insurance, Bond & Specialty Insurance, and Personal Insurance - the company offers a diverse range of commercial and personal property, casualty, and specialty insurance products and services. Founded in 1853 and headquartered in New York, The Travelers Companies, Inc. serves businesses, government units, associations, and individuals. The Travelers Companies, Inc.'s products are distributed through brokers, agencies, and specialized retail agents.


Industry: Consumer Electronics

Apple® reported its fiscal 2023 second-quarter financial results, posting a revenue of $94.8 billion, a 3 percent decrease compared to the previous year. Despite the challenging macroeconomic environment, Apple Inc. achieved all-time records in Services and iPhone sales, and its active device user base reached an all-time high. Apple Inc.'s CEO, Tim Cook, highlighted Apple Inc.'s commitment to long-term investments and sustainable practices, aiming to build carbon-neutral products and supply chains by 2030.

In light of the improved year-over-year business performance and strong operating cash flow of $28.6 billion, Apple Inc.'s CFO, Luca Maestri, shared that Apple Inc. returned over $23 billion to shareholders during the quarter. Furthermore, showing confidence in Apple Inc.'s future and belief in the value of Apple Inc.'s stock, the board of directors authorized an additional $90 billion for share repurchases. Moreover, the board raised the quarterly dividend by 4 percent, declaring a cash dividend of $0.24 per share of Apple Inc.'s common stock.

Apple Inc. is a global technology company specializing in smartphones, personal computers, tablets, wearables, and related services. Apple Inc.'s product lineup includes the iPhone, Mac, iPad, AirPods, Apple Watch, and more. The company operates various platforms like the App Store, offering applications, digital content, and services like Apple Music, Apple TV+, and Apple Pay. With a diverse customer base ranging from consumers to businesses and government sectors, Apple Inc. sells its products through retail and online stores, as well as through third-party partners. Established in 1977, Apple Inc. is headquartered in Cupertino, California.


Industry: Coal

Contura Energy Inc. (NYSE: CTRA) recently announced robust first-quarter 2023 financial results, driven by strong execution and competitive returns across its regions. The company's balanced portfolio, with equal weighting to liquids and natural gas, has provided consistent cash flow through commodity price cycles, positioning Contura Energy Inc. well to meet or exceed 2023 guidance. As a result of their positive performance, Contura Energy Inc. increased its dividend and plans to return $420 million to shareholders, representing 76% of Contura Energy Inc.'s Free Cash Flow. The dividend increase to $0.20 per share is a testament to Contura Energy Inc.'s commitment to shareholder returns, with an emphasis on base dividends and share buybacks.

Additionally, the company's solid financial position, with an investment-grade credit rating and approximately $2.5 billion of liquidity, adds to the positive outlook for Contura Energy Inc. As they continue to maintain a strong focus on value creation through consistent, profitable growth, Contura Energy Inc. remains committed to sustainability and ESG leadership.

Furthermore, the company provided guidance updates for 2023, estimating full-year Discretionary Cash Flow of around $3.6 billion and Free Cash Flow of approximately $1.6 billion, further enhancing investor confidence. With a favorable outlook for the oil and natural gas sectors, Contura Energy Inc.'s dividend prospects and stock performance are likely to be positively influenced by Contura Energy Inc.'s strong operating results and disciplined approach to value creation.

Contura Energy, Inc. engages in the provision of met and thermal coal. Contura Energy, Inc. operates through the following business segments: Central Appalachia (CAPP)-Met; Central Appalachia (CAPP)-Thermal; Northern Appalachia (NAPP); and All Other. The CAPP-Met comprises of seven active mines and two preparation plants in Virginia, sixteen active mines and five preparation plants in West Virginia. The CAPP - Thermal segment consists of five active mines and two preparation plants in West Virginia. The NAPP segment focuses In one active mine in Pennsylvania and one preparation plant. The All Other segment includes general corporate overhead and corporate assets and liabilities, elimination of intersegment activity, and discontinued operations. The company was founded on June 26, 2016, and is headquartered in Bristol, TN.


Industry: Discount Stores

Target Corporation (TGT) has once again demonstrated its commitment to rewarding shareholders by increasing its quarterly dividend by 1.9% to $1.10 per common share, up from the previous $1.08. This move marks the 224th consecutive dividend paid since Target Corporation went public in October 1967, and it signals the 52nd consecutive year of annual dividend increases for Target Corporation.

Target Corporation operates as a general merchandise retailer in the United States. The company offers food assortments, including perishables, dry grocery, dairy, and frozen items; apparel, accessories, home décor products, electronics, toys, seasonal offerings, and other merchandise; beauty and household essentials; The company also provides in-store amenities, such as Target Café, Target Optical, Starbucks, and other food service offerings. It sells its products through its stores; and digital channels, including As of March 25, 2020, the company operated approximately 1,900 stores. Target Corporation was founded in 1902 and is headquartered in Minneapolis, Minnesota.


Industry: Insurance—Property & Casualty

W. R. Berkley Corporation (WRB), founded in 1967, has announced a significant increase in its regular cash dividend. The company's Board of Directors has taken a forward-looking approach and voted to raise the annual cash dividend rate to 44 cents per share, marking a noteworthy 10% increase from the previous rate. This decision demonstrates W. R. Berkley Corporation's commitment to rewarding its shareholders and signifies a positive outlook on its financial health.

The new quarterly dividend rate of 11 cents per share will take effect on June 30, 2023, and it's evident that the company is taking strategic steps to boost shareholder value. Moreover, to further enhance shareholder returns, the Board of Directors has authorized a share repurchase program for 15 million shares of common stock. This move allows W. R. Berkley Corporation to buy back its own shares from the market, signaling confidence in its future performance.

W. R. Berkley Corporation is a leading insurance holding company operating in the US and internationally. W. R. Berkley Corporation has two segments: Insurance and Reinsurance & Monoline Excess. The Insurance segment underwrites a wide range of commercial insurance business, including property, liability, workers' compensation, and specialty products. The Reinsurance & Monoline Excess segment provides risk management solutions to other insurance companies and self-insureds through reinsurance. Founded in 1967, W. R. Berkley Corporation is headquartered in Greenwich, Connecticut.


Industry: Insurance Brokers

Brown & Brown, Inc. (BRO) recently posted robust financial results for Q1 2023, showcasing impressive revenue growth of 23.4% year-on-year, with total revenues reaching $1,116.0 million. Commissions and fees also experienced substantial growth, rising by 22.5%, and Organic Revenue showed an impressive increase of 12.6%. Net income climbed by 6.9% to $235.5 million. This exceptional performance has driven the company's Board of Directors to declare a regular quarterly cash dividend of $0.1150 per share, indicating their confidence in the company's promising future.

The remarkable revenue surge can be attributed to Brown & Brown's dedication to delivering innovative solutions for its customers. J. Powell Brown, the President, and CEO, lauded the collective efforts of the team in achieving these outstanding results. Additionally, the company's strong financial position and stability, evident in their solid balance sheet, further bolster their positive outlook for the future.

Brown & Brown, Inc. is a leading insurance provider operating in the United States, England, Canada, Bermuda, and the Cayman Islands. With four core segments - Retail, National Programs, Wholesale Brokerage, and Services - the company offers a diverse range of insurance products and services. Brown & Brown's Retail segment caters to commercial, public, and individual customers, providing a comprehensive suite of insurance products, risk management, and claims processing services. The National Programs segment specializes in professional liability insurance for various professions and supplementary insurance products. The Wholesale Brokerage segment focuses on excess and surplus insurance offerings. Finally, their Services segment delivers third-party claims administration and medical utilization management services. Founded in 1939 and headquartered in Daytona Beach, Florida, Brown & Brown is dedicated to serving the insurance needs of its diverse clientele through independent agents and brokers.


Industry: Financial Data & Stock Exchanges

NASDAQ, Inc. (NDAQ) recently announced an impressive 10% increase in its regular quarterly dividend, which now stands at $0.22 per share on their outstanding common stock. This move is a testament to the company's strong financial performance and its commitment to rewarding shareholders.

NASDAQ, Inc. is a global technology company serving capital markets and other industries. NASDAQ's Market Services segment operates exchanges and marketplaces for various asset classes, offering trading, clearing, and settlement services. NASDAQ's Corporate Services segment provides capital market and governance solutions to public and private companies. NASDAQ's Information Services segment delivers market data and analytics to institutional and retail investors. NASDAQ's Market Technology segment offers technology solutions for trading, surveillance, and information dissemination. NASDAQ, Inc. was founded in 1971 and is headquartered in New York, New York.


Industry: Business Equipment & Supplies

Avery Dennison Corporation (AVY) recently announced a notable increase in its quarterly dividend. The company's Board of Directors approved a 8% hike, bringing the new dividend rate to $0.81 per share. This decision reflects the company's robust financial performance and confidence in its future prospects.

Avery Dennison Corporation is a global leader in producing and selling pressure-sensitive materials. Avery Dennison Corporation's segments include Label and Graphic Materials, offering a wide range of label, packaging, and graphics products; Retail Branding and Information Solutions, providing brand embellishments, RFID solutions, and visibility and security solutions; and Industrial and Healthcare Materials, serving various industries with tapes, medical fasteners, and performance polymers. Founded in 1935 and headquartered in Glendale, California, Avery Dennison Corporation has a strong presence in multiple market segments, catering to retailers, brand owners, manufacturers, and industrial customers worldwide.


Industry: Home Improvement Retail

Lowe's Companies, Inc. (LOW) has announced a promising quarterly cash dividend of $1.10 per share, representing a 5% increase over its previous dividend of $1.05. This decision comes as a testament to the company's successful implementation of its Total Home strategy, driving market share, loyalty among professionals, and substantial online growth. The dividend is scheduled to be payable on August 9, 2023, to shareholders recorded as of July 26, 2023.

Marvin R. Ellison, the chairman, president, and CEO of Lowe's, attributed the dividend increase to their relentless commitment to a best-in-class capital allocation strategy, with a primary focus on generating sustainable shareholder value. Lowe's Companies, Inc.'s dedication to delivering exceptional service and value for both DIY customers and professionals has led to considerable growth and success in recent years.

Lowe's Companies, Inc. has a solid track record of dividend payments, having distributed cash dividends each quarter since its initial public offering in 1961. Moreover, they have consistently increased the dividend for over 25 consecutive years, indicating their financial strength and positive outlook for future growth.

Lowe's Companies, Inc., together with its subsidiaries, operates as a home improvement retailer in the United States, Canada, and Mexico. The company offers a line of products for construction, maintenance, repair, remodeling, and decorating. It provides home improvement products in various categories, such as appliances, décor, paint, hardware, millwork, lawn and garden, lighting, lumber and building materials, flooring, kitchens and bath, rough plumbing and electrical, seasonal and outdoor living, and tools. It also offers installation services through independent contractors in various product categories; extended protection plans; and in-warranty and out-of-warranty repair services. The company sells its national brand-name merchandise and private branded products to homeowners, renters, and professional customers. As of January 31, 2020, the company operated approximately 1,900 stores. Lowe's Companies, Inc. was founded in 1902 and is headquartered in Mooresville, North Carolina.


Industry: Aerospace & Defense

Northrop Grumman Corporation, a prominent global aerospace and defense technology company, recently declared a quarterly dividend of $1.87 per share on its common stock. This dividend represents an impressive 8 percent increase, marking the company's 20th consecutive annual dividend raise. The decision to increase the dividend showcases the company's commitment to providing sustainable returns to its shareholders while continuing to invest in its business to better support its customers.

As stated by Kathy Warden, the chair, chief executive officer, and president of Northrop Grumman, the company follows a disciplined and balanced approach to capital deployment. This approach ensures that shareholders benefit from a growing dividend, while the company allocates resources to further enhance its offerings and address its customers' most challenging problems.

Northrop Grumman Corporation is a leading security company offering autonomous systems, cyber solutions, space technology, and more to both domestic and international clients. Operating through Aeronautics, Defense, Mission, and Space Systems segments, Northrop Grumman designs and produces a wide range of aerospace and defense products, including manned aircraft, autonomous systems, spacecraft, laser systems, and microelectronics. With a strong focus on intelligence, surveillance, reconnaissance, and space science, Northrop Grumman serves national security, civil government, and commercial missions. The company also specializes in C4ISR systems, electronic warfare, cyber solutions, and missile products, while providing comprehensive life-cycle support, modernization, and training services. Established in 1939, Northrop Grumman is headquartered in Falls Church, Virginia.


Industry: Leisure

Pool Corporation (Nasdaq/GSM:POOL) recently made significant strides to reward its shareholders and bolster investor confidence. The company announced the approval of an additional $413.6 million for share repurchases, increasing the total authorization available to $600.0 million. This move signals the management's commitment to returning cash to shareholders and reflects their confidence in the company's future performance.

Furthermore, Pool Corporation declared a 10% increase in its quarterly cash dividend, raising it from $1.00 to $1.10 per share. This marks the 18th time since 2004 that the company has boosted its dividend payment, underscoring their consistent growth and dedication to providing value to shareholders. The dividend will be payable on May 31, 2023, to stockholders of record on May 17, 2023.

Mr. Stokely, Chairman of the Board, expressed gratitude for the unwavering support from shareholders and acknowledged the company's remarkable achievements. The leadership team, backed by the recent election of directors at the Annual Meeting of Stockholders, is focused on creating exceptional value for all stakeholders, including customers, suppliers, and employees.

Pool Corporation, founded in 1993, is a leading wholesale distributor of swimming pool and related backyard products. Pool Corporation operates a vast network of sales centers in North America, catering to over 120,000 wholesale customers. With a wide-ranging product portfolio, Pool Corporation offers more than 200,000 national brand and private label products. The company serves as a one-stop shop for pool supplies, including maintenance equipment, replacement parts, chemicals, and leisure products. Pool Corporation's customer base comprises pool remodelers and builders, independent retailers, and service professionals. Pool Corporation strives to be the preferred distributor in the industry, delivering exceptional service and support to its customers. The company is headquartered in Covington, Louisiana.


Industry: Oil & Gas Midstream

Pool Corporation (Nasdaq/GSM:POOL) recently made significant strides to reward Pembina Pipeline Corporation shareholders and bolster investor confidence. Pembina Pipeline Corporation announced the approval of an additional $413.6 million for share repurchases, increasing the total authorization available to $600.0 million. This move signals the management's commitment to returning cash to shareholders and reflects their confidence in Pembina Pipeline Corporation's future performance.

Furthermore, Pembina Pipeline Corporation declared a 10% increase in its quarterly cash dividend, raising it from $1.00 to $1.10 per share. This marks the 18th time since 2004 that Pembina Pipeline Corporation has boosted its dividend payment, underscoring their consistent growth and dedication to providing value to shareholders. The dividend will be payable on May 31, 2023, to stockholders of record on May 17, 2023.

Mr. Stokely, Chairman of the Board, expressed gratitude for the unwavering support from shareholders and acknowledged Pembina Pipeline Corporation's remarkable achievements. The leadership team, backed by the recent election of directors at the Annual Meeting of Stockholders, is focused on creating exceptional value for all stakeholders, including customers, suppliers, and employees.

Pembina Pipeline Corporation provides transportation and midstream services for the energy industry in North America. It operates through three segments: Pipelines, Facilities, and Marketing & New Ventures. The Pipelines segment operates conventional, transmission, and oil sands and heavy oil pipeline assets with a transportation capacity of 3.1 million barrels of oil, ground storage of 11 millions of barrels, and rail terminalling capacity of approximately 145 thousands of barrels of oil equivalent serving markets and basins across North America. The Facilities segment offers processing and fraction facilities, and other infrastructure related services to provide customers with natural gas and natural gas liquid services, as well as 326 thousands of barrels per day of natural gas liquids fractionation, 21 millions of barrels of cavern storage, and associated pipeline and rail terminalling facilities. The Marketing & New Ventures segment buys and sells hydrocarbon liquids and natural gas originating in the Western Canadian sedimentary basin and other basins. Pembina Pipeline Corporation was founded in 1997 and is headquartered in Calgary, Canada.


Industry: Oil & Gas Midstream

Energy Transfer LP has just announced an increase in its quarterly cash distribution for the first quarter ended March 31, 2023. The new distribution will be $0.3075 per Energy Transfer common unit, up from $0.305 per unit in the previous quarter, resulting in an annualized distribution of $1.23 per unit.

The decision to increase the dividend comes as Energy Transfer continues to demonstrate strong financial performance and growth prospects. The company aims to make ongoing quarterly increases to its common unit distribution, targeting an impressive 3% to 5% annual distribution growth rate. This move signals management's confidence in Energy Transfer LP's ability to generate sustainable cash flows, which is likely to attract more investors and boost shareholder value.

Energy Transfer LP, headquartered in Dallas, Texas, is a leading energy services provider with an extensive network of pipelines spanning over 22,900 miles, including natural gas transportation, gathering, and liquid pipelines. The company serves a wide range of customers, including electric utilities, industrial users, and marketing firms. It also operates refining, retail, and distribution businesses, along with offering compression and various specialized energy solutions. Established in 2002, Energy Transfer LP is a key player in the energy sector, driving innovation and delivering vital resources across multiple states.

All data was sourced from LevelFields AI

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