Investors who need income from their portfolios love dividend stocks, and the only thing better than a company that consistently makes its dividend payments is a company that regularly boosts the size of those payouts from year to year. Among the 30 stocks in the Dow Jones Industrial Average (^DJI 0.40%), you'll find plenty of companies with the financial strength to reward shareholders with dividend growth over the long run.
Indeed, many companies that have amassed long streaks of annual dividend increases get pretty methodical about when they announce their payout boosts. Below, you'll learn why three stocks in the Dow Jones -- Chevron (CVX 0.37%), Coca-Cola (KO), and 3M (MMM 0.46%) -- are likely to give their shareholders good news in the next month or two.
Chevron looks energetic
Energy companies are designed to produce massive amounts of cash flow, especially when prices of oil and natural gas are high. The environment for energy products wasn't perfect in 2023, but Chevron was able to weather the volatility in crude oil and natural gas with its integrated operations. The company boasts not only extensive exploration and production capabilities, but also downstream refining operations.
Chevron has raised its dividend for 36 straight years, with its most recent increase of 6% coming early last year. Those dividend announcements have typically come in late January or early February, and Chevron has already scheduled its fourth-quarter financial release to come on Feb. 2.
There's a chance that the oil giant could surprise dividend investors because of its recent agreement to buy industry peer Hess in a massive $53 billion buyout. But because that deal involves only stock rather than cash, it won't necessarily lead Chevron to reduce its quarterly payout.
Coca-Cola isn't going flat
Consumer giant Coca-Cola also brings in ample profits from the sale of its extensive lineup of beverages. From its namesake carbonated soda to various waters, juices, teas, and other refreshments, Coca-Cola has continued to grow, even while successfully pivoting to capture changing consumer preferences.
Last year, Coca-Cola made its 61st consecutive dividend increase, with a boost of nearly 5% to $0.46 per share quarterly. The announcement came just a couple of days after Coca-Cola released its fourth-quarter financial report.
This year, the beverage giant hasn't yet announced exactly when it will make its latest financials available to investors, but most expect it to come in the second week of February. Despite some ups and downs in the industry, shareholders are optimistic that there will be good news with respect to dividends when Coca-Cola holds its quarterly event.
3M looks to make higher dividends sticky
Lastly, 3M brings expertise in several industries for investors interested in Dow Jones stocks. From Post-It notes to healthcare, electronics, and chemical products, the conglomerate has successfully built up an impressive track record of innovation.
3M also has a long streak of rising dividend payouts that typically come early in the year. In recent years, those increases have been just a single penny, amounting to less than a 1% boost.
Yet with the company's 64-year streak on the line, most investors anticipate that 3M will once again deliver at least a token increase when it declares its next dividend. That typically happens a couple of weeks after the company announces its fourth-quarter results, which most shareholders expect will be in the fourth week of January. Still, some worry that with billions of dollars in settlements over legal issues, 3M might choose to conserve cash by foregoing a dividend increase in 2024.
Hikes are likely, but it's never a sure thing
Dividend investors appreciate the long track records of success from companies like 3M, Coca-Cola, and Chevron. Yet shareholders can't count on dividends until the money hits their brokerage accounts. Be on the lookout to see whether these three Dow Jones stocks are able to deliver the goods to dividend investors in 2024.
