Nike’s “annualized payout is only about 28% of its normalized earnings per share expected,” and that could make the company ripe for a dividend hike, reports 24/7 Wall Street. Visa could be a candidate as well. The shares currently yield just 0.7%, but the dividend has more than doubled since 2011. Visa will be DIA’s second-largest holding when it enters the Dow.
On Tuesday, DIA got some positive dividend news when Microsoft (NasdaqGM: MSFT) said it will raise its quarterly dividend to 28 cents a share from 23 cents. Microsoft is 1.63% of DIA’s weight. [Tech Dividend ETF: Microsoft Dividend Increase Highlights Rising Sector Payouts]
SPDR Dow Jones Industrial Average ETF
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of GE, Coca-Cola, Microsoft and Procter & Gamble.
