Those who like the idea of passive income find dividend stocks attractive. Many companies pay dividends to their shareholders, and they give investors a chance to get some current income while also having the potential to see the value of their stock go up over time if the company's business performs well.

In a tough economic environment, many companies are struggling. That makes it all the more impressive when stronger businesses are able to increase their dividend payouts to shareholders. In the past week, a couple of high-profile companies rewarded their shareholders with higher dividends, and both of them have attractive prospects to keep growing in the future as well. Read on to find out more about these two dividend stocks and how they could enjoy further gains.

Mastercard

Mastercard (MA -0.08%) is one of the world's biggest electronic payment network providers, with its credit and debit card products accepted across the globe. On Tuesday, Mastercard announced that it would boost its quarterly payout by 16%, declaring a dividend of $0.57 per share that will go out to shareholders on Feb. 9, 2023.

Even with the higher dividend, Mastercard isn't exactly generous with its payouts. The stock yields just 0.65%, largely due to the payment processor's huge share-price advance over the years. Even in a tough market environment in 2022, Mastercard shares are down just a few percentage points, outperforming every major market benchmark.

In the short run, Mastercard does have some exposure to a potential economic slowdown, given that many of its fees are based on payment transaction volume. However, with cross-border purchases recovering from the early years of the pandemic and efforts to modernize with virtual card products, Mastercard's long-term prospects remain attractive.

In addition to the dividend increase, Mastercard also implemented a new share repurchase program, devoting as much as $9 billion to buying back stock of the card giant. The new program will go into effect when the current program from November 2021 gets completed, as it still has more than half of its initial $8 billion authorization available for stock buybacks. That buying activity could well bolster share prices going forward, adding to the benefits of quarterly payouts for dividend investors.

Deere

In the agricultural heavy equipment business, it's been hard to outdo Deere (DE -0.14%) lately. The maker of farm tractors and other machinery increased its quarterly payout by $0.07 per share, or 6%, on Wednesday. That will bring the new dividend to $1.20 per share every three months, with the new dividend getting paid to shareholders on Feb. 8, 2023. That will bring the yield on the stock to nearly 1.1%.

Deere had an exceptionally strong quarterly report in late November that set the stage for the latest payout hike. The company reported a 37% rise in quarterly revenue year over year, and net income jumped 75%. That left Deere with plenty of earnings to return to shareholders in the form of a higher dividend. Moreover, the company projected strength in fiscal 2023 as well, which could lead to even higher quarterly payouts in the future.

Admittedly, Deere's business is somewhat cyclical, and the heavy equipment manufacturer has benefited from some favorable trends. Recent federal legislation has boosted spending on construction equipment, and high prices for crops have supported farmers' budgets to afford purchases.

Even when downturns come, though, Deere has done a good job of sustaining its dividends. That's what every income investor likes to see, and the prospects for Deere stock to add to its year-to-date gains are icing on the cake for passive-income fans.

Enjoy dividend income

If you're looking for passive income, investing in dividend stocks can be a great choice. Deere and Mastercard are just a couple of the many attractive companies in which you can invest and expect to receive ample payouts on a regular basis.