As Q1 earnings season begins to come to a close, several companies are making big statements to shareholders, committing to return substantially more capital. Three stocks that recently reported earnings have announced dividend increases of at least 10%. This shows a particular commitment to returning capital.
Not only are these increases large, but unlike share buybacks, once companies declare dividends, they must pay them. That stands in stark contrast to using buybacks to return capital. A company could theoretically announce the largest buyback program of all time, but it is under no legal requirement to actually spend the cash.
