3 Hot Stocks Just Raised Dividends—1 for the First Time Ever

Three huge stocks just announced significant dividend increases. This includes one of the world’s largest payments companies, which initiated its first dividend ever, and one of the top-performing S&P 500 stocks of 2025.

Below, we’ll break down the dividend news coming from these three names.

PayPal Initiates Dividend, Providing Income for the First Time in +20 Years

Along with posting strong Q3 2025 earnings results on Oct. 28, PayPal (NASDAQ: PYPL) announced that it would start paying a quarterly dividend.

Initiating a dividend has been a long time coming for PayPal, as the stock went public back in 2002. Despite this long wait, PayPal is making up for lost time by starting with a significant dividend.

The firm’s first dividend will be 14 cents per share, payable on Dec. 10 to shareholders of record as of Nov. 19. Right off the bat, this gives PayPal an indicated dividend yield of around 0.8%, already higher than any stock in the Magnificent Seven.

Looking ahead, PayPal said it will target a payout ratio equal to 10% of its adjusted net income. The company is targeting long-term adjusted earnings per share (EPS) growth in the teens, which gives potential for the company’s dividends to increase.

However, PayPal’s aggressive stock buybacks could dampen future dividend growth by concentrating earnings per share gains without proportionally increasing available cash flow for distributions.

The firm also announced a new partnership with OpenAI, which will enable PayPal users to buy and sell products using ChatGPT. ChatGPT has approximately 800 million users, so this partnership could significantly increase transaction volume on PayPal’s network, driving the company’s growth.

Visa Issues Large 14% Dividend Increase Alongside Earnings Beats

While PayPal is a prominent firm in the payments industry, Visa (NYSE: V) is its king.

In its Oct. 28 Q3 earnings report, Visa announced a beat on sales and EPS, as well as a 14% dividend increase. Visa’s new quarterly dividend of 67 cents per share is payable on Dec. 1 to shareholders of record as of Nov. 12. This gives the stock an indicated dividend yield of approximately 0.7%. 

Dividend yields tend to fall as share prices rise, unless dividend growth is commensurate with the increase in share prices, so Visa’s relatively low yield is also a testament to the incredible performance of this stock.

Over the past 15 years, Visa shares rose by a compound annual growth rate (CAGR) of around 21%, beating the 12.4% CAGR of the S&P 500 Index by a vast margin.

Still, Visa has done a great job of raising its dividend over the years—its dividend also grew at a 21% CAGR over that period, leaving its yield nearly the same as 15 years ago.

Seagate Delivers Strong Tech Dividend Yield Even After Triple-Bagger Performance

Last up is one of the market’s best-performing stocks of 2025, Seagate Technology (NASDAQ: STX).

Seagate has delivered a total return of just over 200% this year. Among stocks in the S&P 500 Index, Seagate’s return is the third highest, trailing only Robinhood Markets (NASDAQ: HOOD) and Western Digital (NASDAQ: WDC), whose respective returns are approximately 290% and 230%.

Rapid demand for hard disk drives from data center operators has been the dominant force behind Seagate’s explosive rise. The company posted highly impressive earnings on Oct. 28 and announced a 3% increase to its quarterly dividend. The firm’s next dividend of 74 cents per share will be payable on Jan. 9, 2026, to shareholders of record as of Dec. 24. 

This gives the stock a solid dividend yield of 1.08 %. That’s in line with the approximately 1.1% yield of the S&P 500. It is also more than double the 0.5% yield of the Technology Select Sector SPDR Fund (NYSEARCA: XLK), showing that, especially among U.S. large-cap tech stocks, Seagate’s yield is highly competitive.

PYPL, V, STX: Different Flavors of Dividend Stocks

All three of these firms offer something to dividend investors. PayPal is getting off to a hot start with its first dividend, while Visa’s dividend growth rate is striking. Meanwhile, Seagate’s yield is compelling when compared to other tech stocks.

For investors seeking income in a tech-driven world, these names provide compelling entry points—whether you’re chasing growth, yield, or a bit of both.

Companies Mentioned in This Article:

Company	Current Price	Price Change	Dividend Yield	P/E Ratio	Consensus Rating	Consensus Price Target
PayPal (PYPL)	$68.34	-1.3%	N/A	13.70	Hold	$83.00
Visa (V)	$336.74	-1.2%	0.70%	32.98	Moderate Buy	$400.00
Seagate Technology (STX)	$265.55	+3.8%	1.08%	34.09	Moderate Buy	$263.18

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 has held roles as an investment research associate at Laird Norton Wetherby and as a research analyst at Sungarden Investment Publishing, where he gained hands-on experience evaluating equities and portfolio strategies.
• Credentials: 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. He has passed the CFA Level II exam.
• Finance Experience: Leo began 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 foundation and direct exposure to financial markets shape his perspectives.
• Writing Focus: He specializes in tech stocks, dividend-paying companies, ETFs, and value-oriented opportunities. His work emphasizes clarity, actionable insights, and education for investors at all levels.
• Investment Approach: Leo follows a disciplined, long-term investing strategy rooted in fundamental analysis, with a strong focus on economics, sector and industry research, and passive investing principles.
• Inspiration: Leo finds the stock market endlessly compelling and enjoys the challenge of separating meaningful data from noise. He’s passionate about analyzing what makes businesses stand out—and sharing those insights to guide informed investment decisions. As he puts it, “Performing strong analysis requires separating the wheat from the chaff.”
• Fun Fact: Leo credits his grandfather for 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 University of Washington