These 3 Stocks Just Raised Their Dividends

We're now mostly past the spring earnings season. As with any such period in the investor calendar, this one left behind a clutch of dividend raises from companies ranging from the world-famous to the near-unknown.

Focusing on the former category, here's a brief look at the latest increases from a trio of familiar names: ubiquitous retailer Target (NYSE: TGT), heavy industrial vehicle maker Caterpillar (NYSE: CAT), and logistics king FedEx (NYSE: FDX).

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1. Target

Of our three raisers, Target is the only Dividend King. This very limited selection of stocks consists of companies that have declared dividend raises once every year, at least, for a minimum of 50 years in a row. In mid-June, Target decided to extend its streak to 55 years, albeit not spectacularly. It raised its quarterly payout by just under 2% to $1.16 per share.

Target's equity has had quite the strong 2026 after dipping to multi-year lows at the end of 2025. That outperformance reflects the confidence of the relatively new CEO, Michael Fiddelke, who's pledged to return Target to the cool-retailer glory of its recent past. But that won't come cheaply or quickly, with $2 billion in anticipated spending this year, and only 2% projected net sales growth.

I think Target is a smartly managed company with a massive customer base that can spark growth in numerous ways. It might not fly much higher in the coming months, but I think it can be quite the rewarding stock for the more patient investors out there.

There's still plenty of time for folks to take advantage of Target's dividend raise. The freshly enhanced payout will be distributed on Sept. 1 to investors of record as of Aug. 12. At the stock's current price, it would yield 3.5%. That compares very favorably with the barely over 1% average of all titles in the benchmark S&P 500 index.

2. Caterpillar

It might surprise some investors that one of the numerous beneficiaries of the current frenzy to build artificial intelligence (AI)-suitable data centers has been Caterpillar. After all, the company specializes in the heavy, lumbering machinery that crowds construction sites. What could it possibly have to do with cutting-edge technology?

Plenty, it turns out. Caterpillar's power and energy unit provides quick-start power backup systems for situations when a primary source alone won't suffice. Not only that, but the company also earns revenue from this business with long-term customer agreements covering maintenance, diagnostics, and other services.

Lately, power and energy have been giving real zip to Caterpillar's fundamentals. Its total sales leaped 21% year over year in the company's first quarter, to $5.8 billion. That helped lift overall company sales by 22% to over $17.4 billion, and headline net income by 27% to $2.5 billion. These tailwinds provided enough of a financial breeze for an 8% dividend raise, to a quarterly rate of $1.63 per share.

Caterpillar is growing a reputation as a fine pick-and-shovel play on the data center construction frenzy, so believers in the strength and viability of that trend -- like myself -- would do well to own the company's stock. On the downside, its recent, AI-fueled jump in popularity has pushed down its yield. Even with the dividend raise, the "Cat" would yield only 0.6%.

The company will pay that initial $1.63 per share dividend on Aug. 19 to stockholders of record as of July 20.

3. FedEx

FedEx's latest dividend increase isn't as straightforward as those of its two large-cap peers. It's actually an after-effect of the company's spinoff of its now-independent FedEx Freight business, which took effect on June 1. Since the veteran logistics company has hived off a considerable chunk of its business, what's left is leaner and smaller.

That applies to its regular quarterly payout, too, so the last dividend paid by pre-spinoff FedEx of $1.45 per share is adjusted to roughly $1.16, according to management's math. Therefore, the "new" FedEx's June 8 declaration of a $1.22-per-share dividend represents a 5% dividend raise.

The spinoff decouples FedEx's traditional get-it-there-fast shipping business with its burgeoning less-than-truckload (LTL) operations. While both fall under the broad logistics umbrella, they are very different and require highly specialized operating models. Hiving off Freight was a sensible move for the company. That leaves the question of whether legacy FedEx, with its dividend raise, is a worthwhile investment.

FedEx is a wait-and-see for me, and not only because of the spinoff. The company is in front of its sprawling Network 2.0 initiative. If effectively implemented, this will increase efficiency, reduce costs, and attract new business. FedEx has yet to prove whether this can be realized, though. I'd imagine it'll be bumpy given the scope of the ambition and the complexity of FedEx's business.

Those who disagree can reap the rewards of that dividend raise. It takes effect with the next payout, slated for July 7 for investors of record as of June 22. At the most recent closing stock price, it would yield 1.4%.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Caterpillar and Target. The Motley Fool recommends FedEx and FedEx Freight. The Motley Fool has a disclosure policy.