3 Dividend Increases Investors Can Really Count On

Major names across the healthcare and industrial sectors have recently announced significant dividend increases. Importantly, all three companies are not exaggerating their dividend payouts. Their recent earnings and guidance are above planned earnings, paving the way for sustainable shareholder returns going forward.

UnitedHealth Group Yield Approaches 2.5% As Recovery Continues

UnitedHealth Group (NYSE: UNH) stands as the leading health insurance provider in the United States. The stock rebounded in 2026, rising more than 20% after falling 33% last year. The company’s adjusted earnings per share (EPS) fell nearly 41% year-over-year (YOY) in 2025 to $16.35. This has happened as the cost of treatment has increased significantly compared to the premiums collected. However, the company is seeing some relief. UnitedHealth Group raised its full-year 2026 EPS guidance to more than $18.25, implying YOY growth of 12% or more.

With adjusted EPS falling in 2025, the company recently increased its quarterly earnings by 5% to $2.32. Overall, the stock now has an implied dividend yield of 2.45% and is on track to deliver a full-year dividend of $9.28. The record date for its new dividend was June 15. However, with a 15-year track record of dividend increases, investors are likely to see higher returns in the coming quarters.

Additionally, UnitedHealth’s expected dividend of $9.28 should be easily covered by its expected adjusted EPS of $18.25 or so. These factors indicate that, despite UnitedHealth Group’s recovery, investors can be optimistic about strong profits going forward.

Caterpillar: Top Pick-and-Shovel AI Stock Raises Dividend 8%

A giant of heavy machinery Caterpillar (NYSE: CAT) The stock is an absolute ripper, delivering a 60% total return in 2025 and now up over 50% in 2026. This comes as Caterpillar has clearly succeeded in the development of artificial intelligence. Caterpillar reciprocating engines have been a particularly successful product line. This provides backup power to data centers and has also seen interest as primary power solutions. Notably, as of January 2024, the company’s large engine backlog has increased more than 3.5 times.

Additionally, Caterpillar issued a significant dividend increase of 8%, moving its payout to $1.63. By comparison, Caterpillar generated adjusted EPS of $5.54 in Q1 2026, putting its shares in a more sustainable position. The stock’s yield is now close to 0.76%, and its next dividend will be paid on August 19 to shareholders. Caterpillar’s profit streak now spans 30 years.

Overall, Caterpillar is clearly not a high-yield stock, and returns come at the expense of large-time dividend appreciation. Among these, the importance of the high Caterpillar is important to consider. Caterpillar currently trades at a forward price-to-earnings (P/E) ratio of close to 36x, nearly 80% above its average of 20x three years ago.

Donaldson Posts Strong Profit After Record Quarter

Industrial company Donaldson (NYSE: DCI) specializes in filtration systems. The stock is poised to decline slightly in 2026 after a 33.7% gain in 2025. Donaldson benefits from data center design in a variety of settings. This includes its disk drive filters, as well as the filters used in the natural gas turbines that power many data centers. The company noted that its latest quarter was its strongest to date, with revenue reaching a record $995 million.

Donaldson also increased its dividend by 6.7%, bringing its quarterly payout to 32 cents per share. Notably, Donaldson’s adjusted EPS more than tripled this level in its most recent quarter at $1.06, leaving its payout well supported. Despite the June 15 record date, Donaldson’s 38-year track record of dividend increases makes this $1.06 payout highly unlikely to drop in the near future.

Shares now have an implied dividend yield of close to 1.6%, giving Donaldson a small, but reasonable, return. When you think about data center exposure, Donaldson is not a “fair play” name. While seeing real data center-driven demand, the company is also playing in many other areas. Donaldson’s mobile solutions segment is the largest, contributing nearly 63% of revenue last quarter. In this segment, the company offers air and other filtration systems for large vehicles and equipment, with a strong focus on replacement filters.

UnitedHealth Stands Out As Targets Raise and Rate of Care Improves

The MarketBeat consensus price target for UnitedHealth Group sits near $407, suggesting the market is still positively valuing the stock. However, UnitedHealth Group has seen a large price target increase since late, with the target revised in June to an average of $454. Improved medical costing practices are one source of this change.

Looking ahead, an important metric for investors to monitor is UnitedHealth’s medical care ratio. The ratio measures how many dollars the company paid in medical expenses for each dollar of premiums collected. The lower the price, the better, which translates to higher profits for the company. The company saw its healthcare coverage ratio drop 90 points YOY ​​in its most recent quarter to 83.9%. Another YOY improvement will reflect continued progress in UnitedHealth’s recovery.

Companies mentioned in this article:

Company	Current Price	Price Changes	Dividend Yield	The P/E ratio	Consensus ratio	Consensus Price Target
UnitedHealth Group (UNH)	$409.81	+0.3%	2.16%	30.94	Buy Medium	$407.17
Donaldson (DCI)	$87.25	+1.0%	1.38%	23.46	Buy Medium	$97.83
Caterpillar (CAT)	$931.42	+2.3%	0.70%	46.27	Buy Medium	$933.27

About Leo Miller

Experience

Leo Miller has been a contributing writer for DividendStocks.com since 2024.

• Professional Background: Leo Miller is a financial writer with a background in investment research and market analysis. He held roles as an investment research partner at Laird Norton Wetherby and as a research analyst at Sungarden Investment Publishing, where he gained extensive experience in valuation and portfolio strategies.
• Confirmation: He holds a Bachelor of Business Administration in Finance from the University of Washington’s Foster School of Business, a top-ranked public business school. Passed the CFA Level II exam.
• Financial Experience: Leo started researching and investing in gold mining stocks in 2019 and started writing about finance and investing in 2021. He joined DividendStocks.com as a contributing writer in 2024, where he covers both stocks and ETFs. A strong research base and direct exposure to the financial markets shape his opinions.
• Writing Focus: He specializes in technology stocks, dividend-paying companies, ETFs, and value-oriented opportunities. His work emphasizes clarity, practical understanding, and education for investors at all levels.
• How to Invest: Leo follows a disciplined, long-term investment strategy based on fundamental analysis, with a strong focus on economics, industry and sector research, and passive investment principles.
• Motivation: Leo finds the stock market endlessly compelling and enjoys the challenge of separating meaningful data from the noise. He is passionate about analyzing what makes businesses stand out—and sharing that insight to guide informed investment decisions. As he puts it, “Strong analysis requires separating the wheat from the chaff.”
• Fun fact: Leo credits his grandfather with sparking his interest in investing and is a lifelong animal lover.
• Areas of Expertise: Fundamental analysis, economics, industry and sector analysis

Education

Bachelor in Business Administration, Finance, Foster School of Business at the University of Washington