For the past two years, income investors have increasingly been turning to the equities market in order to offset the Federal Reserve’s interest rate cuts, which have resulted in diminished yields on fixed income products.
However, since the United States and Israel led attacks on Iran, the likelihood of the Fed once again lowering its benchmark effective federal funds rate (EFFR) at this month’s Federal Open Market Committee meeting—and doing so for the first time in 2026—has all but disappeared.
Rising oil prices resulting from the war with Iran and the subsequent spread of geopolitical uncertainty across the Middle East have reignited inflationary fears. Add in a steadily increasing unemployment rate that reached 4.4% last month, and macro conditions are not conducive to the central bank cutting rates in the immediate future.
But with the EFFR likely to hold in its current range of 3.5% to 3.75%, dividend stocks continue to allure yield-focused investors who don’t see debt securities returning to their former glory. To that end, it is useful to identify companies that are actively increasing their dividends in order to help generate cash flow that can supplement other sources of passive income.
Here are three stocks that fit the bill.
The 161-Year-Old Bank Continuing to Attract Inflows
Founded in 1865 and tracing its roots to the Hongkong and Shanghai Banking Corporation, HSBC Holdings (NYSE: HSBC), a multinational banking and financial services organization headquartered in London, was created to facilitate trade between Europe and Asia. Since then, it has grown into one of the world’s largest banking groups.
With almost a 10% year-to-date (YTD) gain, the stock has outperformed the broad financials sector, which has shown the worst performance of all 11 S&P 500 sectors in 2026 with a YTD loss of 8%.
Based on nine analysts covering the stock, HSBC receives a consensus Moderate Buy rating but an average 12-month price target that implies more than 26% downside from today’s prices.
But the financial services company attracted a great deal of attention when it recently announced a 350% increase to its dividend that will bring its yield north of 4% when it makes its next distribution on April 30 to shareholders of record on March 13.
HSBC currently sports a sustainable dividend payout ratio of 32.73%, while its annualized five-year dividend growth rate is 25.58%.
This Materials Stock Sports a Low Payout Ratio That Could Keep Growing
Founded in 1919 as the Crown Cork & Seal Company, Philadelphia-based Crown Holdings (NYSE: CCK)—which operates in the materials sector, 2026’s third-best performing sector—is a leading global supplier of rigid packaging products for consumer goods markets.
The company designs, manufactures, and sells metal packaging for beverage, food, household, personal care, and specialty products. Its portfolio includes aluminum and steel beverage cans, steel food cans, aluminum aerosols, metal closures and ends, and other products offering customers end-to-end solutions from design and prototyping to large-scale production.
Shares, which are mostly flat so far in 2026, have gained more than 15% over the past year and more than 54% since their five-year low on Oct. 28, 2002. Its dividend recently got a boost, which could draw in more income investors.
Crown Holdings announced a 34.62% increase to its dividend that will bring its yield to 1.22% when it makes its next distribution on March 25 to shareholders of record on March 12.
The stock’s current dividend payout ratio of just 16.33% suggests that the company is conservatively allocating cash flow to its dividend. Going forward, that ratio could grow if Crown continues to beat earnings expectations—a task it has accomplished eight out of the last nine quarters.
CCK receives a consensus Moderate Buy rating, with analysts’ average 12-month price target implying nearly 20% potential upside from current prices.
A Midstream Energy Play for Income and Appreciation
The energy sector is having its moment in the sun, having led the S&P 500 this year even before the United States and Israel engaged militarily with Iran. At the time of writing, the cohort’s YTD gain of 23% has trounced the S&P 500, which has posted a YTD loss.
While primarily a defensive sector, energy’s gains this year are welcome. But it is the generous dividends the stocks in this corner of the market pay that typically attract investors. Such is the case with Torm A/S (NASDAQ: TRMD), a midstream shipping company that transports refined petroleum products via a fleet of tankers.
Torm has gained more than 277% since its February 2018 IPO, but the petroleum transporting company recently announced a 34.62% increase to its dividend that will bring its yield to 9.6% when it makes its next distribution on March 25 to shareholders of record on March 12.
The company’s current dividend payout ratio of 71.83% may raise suspicions, but it's not uncommonly high for midstream energy companies. TRMD’s annualized five-year dividend growth rate currently stands at 7.58%, and the stock receives a consensus Hold rating with an average 12-month price target implying nearly 19% potential upside.
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The article "3 Stocks That Just Announced Big Dividend Increases" first appeared on MarketBeat.
