3 High-Yielding Dividend Stocks That Just Raised Their Payouts

Dividend stocks that raise their payouts routinely can be money-making machines for investors. You effectively get an increase in your dividend income from these investments by doing nothing, simply holding on.

Three solid dividend-growth stocks that also pay high yields are Lowe's (NYSE: LOW), Medtronic (NYSE: MDT), and UnitedHealth Group (NYSE: UNH). They recently raised their payouts, again. Here's a look at how much they raised their dividend payments and how much the stocks are yielding right now.

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Lowe's

Last week, home improvement giant Lowe's announced that it would be increasing its dividend by 4%, to $1.25 per quarter. The company has an excellent track record for paying dividends going back to 1961, and it has been raising its payout for decades. With the new dividend rate, the stock now yields a solid 2.4%, which is more than double the S&P 500 average of just around 1%.

The stock has been struggling this year, and it's down 14% thus far, as consumers have been cutting back on discretionary spending. But this can be a fantastic stock to own because while spending on home repairs and renovations may not be necessary in the short term, they are essential and inevitable expenses for homeowners in the long run.

Meanwhile, with the stock trading at a lower price, now can be an ideal time to start a position in this solid retail stock. Lowe's currently trades at a forward price-to-earnings (P/E) multiple of 16 (based on analyst estimates), which is far less than the S&P 500 average of 22.

Medtronic

Another great place to invest for the long run is in medical devices, which are crucial for the healthcare sector. Medtronic is a big player in that area of healthcare, as its technologies are used to help people with 70 different health conditions. The company recently reported its year-end numbers, and for fiscal 2026 (which ended on April 24), Medtronic reported its best annual revenue growth in a decade. Its top line came in at $36.4 billion, which was an increase of 8.4% from the previous year.

The company also announced it would be increasing its dividend by one cent, to $0.72. While it's a minor increase, it represents the 49th consecutive year that it has raised its payout, showcasing to investors what a quality dividend stock it is to own. Although its rate increase wasn't significant, Medtronic already pays a fairly high yield of 3.5%.

This year, the stock has fallen by 15%, and it's another attractive option for income investors, as its forward P/E is only 12.

UnitedHealth Group

Health insurance giant UnitedHealth Group also recently announced an increase to its dividend. For the second quarter, its quarterly dividend will be $2.32 per share, which is an increase of 5% from the $2.21 it was previously paying. That's the highest rate of increase on this list. And with the new payout, the healthcare stock now yields 2.3%. It's another solid above-average payout for investors.

UnitedHealth has been generous with dividend increases in the past, and in five years, its quarterly dividend has risen by 60%, which averages out to a compounded annual growth rate of right around 10%. That's a healthy rate of increase, which is crucial to offset the effects of inflation chipping away at dividend income over time.

The company has been generating better results recently, giving investors confidence that its business is going in a more positive direction as it's getting a better handle on medical expenses, which in the past led to worse-than-expected results. But in the first quarter, the company beat expectations, and its medical benefits ratio, which is a key metric for health insurers, came down.

The stock has risen by 20% this year, but with a poor performance in recent years, it's still a fairly reasonably priced option for dividend investors, as it's trading at a forward P/E of 21.

David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Medtronic. The Motley Fool recommends Lowe's Companies and UnitedHealth Group. The Motley Fool has a disclosure policy.