These 4 Dividend Stocks Passed the 2020 Stress Test. Are They Buys in Now October?
Four companies—Philip Morris (PM), Bristol Myers Squibb (BMY), Southern Company (SO), and Prudential Financial (PRU)—raised dividends in 2020 and continue to cover payouts with earnings. PM's yield is 3.16%, BMY's 4.35%, SO's 3.46%, and PRU's 4.96%. Each operates in distinct sectors: tobacco, utilities, pharma, and insurance. PM's smoke-free products grew, BMY's newer drugs outperformed, SO benefits from data center demand, and PRU's asset management and retirement business expanded.
How this was made
The 30-second read
Why it matters
While each company shows solid dividend coverage, the news is largely a recap of existing dividend policies, offering limited new trading impetus.
Market read
Income‑focused investors may note the dividend hikes, but the lack of fresh material news limits trading relevance.
What to watch
Potential impact of rising interest rates on utility financing costs and tobacco litigation risks.
Background
The article reviews four dividend‑paying US stocks that raised their payouts in 2020 and continue to increase them in 2026, providing yield and cash‑flow analysis.
Ticker impact
PM announced a quarterly dividend increase to $1.60, raising its annualized yield to 3.16% and confirming cash flow coverage.
likely slight upside as income demand supports the stock
Dividend raise signals strong cash generation; however equity is near 52‑week highs, limiting upside.
BMY lifted its quarterly dividend to $0.63, boosting its forward yield to about 4.35% and reaffirming cash coverage.
potential modest rally on income‑focused buying
Strong cash position and dividend growth offset recent mixed trial results.
SO raised its quarterly dividend to $0.76, delivering a forward yield of roughly 3.46% and confirming coverage with regulated earnings.
steady price with possible small upside from dividend‑focused funds
Utility earnings are predictable; dividend increase is expected in a rising‑rate environment.
PRU increased its quarterly dividend to $1.40, raising the forward yield to about 4.96% and confirming coverage with earnings growth.
likely modest upside from dividend‑seeking capital
Strong balance sheet and earnings growth support the dividend increase, though share price has slipped recently.
Market effects
Highlights the resilience of dividend‑paying stocks across diverse sectors (tobacco, utilities, pharma, insurance).
US‑focused; limited broader regional effect.
Low; primarily of interest to income‑oriented investors.
Counterpoint
Higher yields may mask underlying sector risks, such as regulatory pressure on tobacco and rate‑sensitivity for utilities.
Key entities
- CompanyPhilip Morris International
Tobacco company with dividend increase.
- CompanyBristol Myers Squibb
Pharma firm raising dividend.
- CompanySouthern Company
Regulated utility with higher dividend.
- CompanyPrudential Financial
Insurance/asset‑manager increasing dividend.
