A double-digit dividend increase can be attractive on its own, but it's even more compelling when a company has room to keep raising its payout. For income investors, a low payout ratio can signal that further dividend growth is possible without putting excessive pressure on earnings.
Three companies recently announced sizable increases: T-Mobile US (NASDAQ: TMUS), GE HealthCare Technologies (NASDAQ: GEHC), and Danaos (NYSE: DAC). Their dividend hikes range from 11% to nearly 15%, and all three maintain relatively low payout ratios. However, their yields and investment risks differ considerably.
