Key Points
- T-Mobile raised its dividend nearly 15% to $1.17 per share after SpaceX's spectrum purchase triggered a record one-day stock decline of more than 13%.
- GE HealthCare Technologies boosted its quarterly dividend by 14.3% to 4 cents per share following a strong earnings report with record backlog and book-to-bill ratio.
- Shipping company Danaos increased its dividend by 11% to $1 per share, supported by a low payout ratio and surging charter rates in 2026.
- Special Report: Do NOT Buy SpaceX – Do This Instead
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.
T-Mobile's Nearly 15% Dividend Hike Comes Amid SpaceX Concerns
The over $160 billion telecom giant T-Mobile has had a difficult 2026, with the stock down more than 20% on the year. This puts TMUS on track for its worst calendar year performance since 2014. T-Mobile shares recently took a massive hit, following an announcement from SpaceX (NASDAQ: SPCX).
SpaceX said it agreed to acquire low-band spectrum rights, an important step in being able to offer wireless service that adequately penetrates buildings. Markets viewed this as a significant competitive threat for entrenched wireless carriers, causing T-Mobile's stock to fall more than 13% in one day. Notably, this marked T-Mobile’s largest single-day decline since going public in 2013.
Despite this negative news, a positive recent development from T-Mobile is the company’s nearly 15% dividend increase. The company’s quarterly dividend will move up to $1.17 per share, payable on Dec. 10 with a record date of Nov. 25. Following this increase and the stock’s significant decline in 2026, T-Mobile’s forward dividend yield has moved up sharply to approximately 3%. Additionally, the company’s payout ratio remains low, near 43% based on trailing 12 months (TTM) earnings and near 37% based on current year estimates. This gives T-Mobile a solid path for announcing further dividend increases.
GE HealthCare Raises Its Dividend 14%, With Room for More
GE HealthCare was one of multiple companies spun off from the legacy conglomerate General Electric. However, the $30 billion firm has not been a strong performer, delivering a total return of only around 18% since the end of 2022. In 2026, GEHC is solidly in the red; however, the stock experienced a significant rebound following its latest earnings report. Shares soared more than 12% afterward as the company reported a record book-to-bill ratio of 1.15x, demonstrating that orders significantly exceeded revenues. Furthermore, the company’s backlog rose to a record $23.9 billion.
GE HealthCare Technologies has also announced a sizable 14.3% dividend increase, moving the stock’s quarterly payout to 4 cents per share. The firm plans to make its next payment on Nov. 13 to shareholders of record as of the Oct. 23 close.
Despite this large increase, the stock’s forward dividend yield remains low, near 0.2%. However, GEHC’s payout ratio is also very low, near 3.2% based on TTM earnings and 2.8% based on current year estimates. Considering this, the company has a significant opportunity to continue growing its dividend at a strong pace.
Still, the firm notes that internal investment and mergers and acquisitions are among its best capital allocation opportunities. Pursuant to this, the firm has agreed to acquire SOFIE Biosciences, which Needham notes should allow it to vertically integrate its radiopharmaceuticals portfolio.
Danaos Boosts Its Dividend and Adds a $5 Special Payout
Last up is Danaos. With a market capitalization near $3 billion, the firm sits at the lower end of the mid-cap category. Danaos operates containerships and dry bulk vessels across Australia, Europe, and the United States, and has put up a very strong performance in 2026. The stock is up almost 70% on the year, but adding in its dividend payments boosts its return to around 85%.
This strong performance is largely due to what management calls “exceptionally tight conditions” in shipping markets, with the conflict in Iran contributing to this. Danaos notes that rates across most shipping sectors are at multi-year highs. Danaos’ Capesize Time Charter Equivalent was $30,400 per day last quarter, up 69% year-over-year, and its contracted revenue backlog reached a record $4.6 billion in the quarter.
Danaos also recently boosted its dividend by 11% to $1 per share, giving the stock a solid forward yield near 2.4%. Although the record date for this dividend has passed, its dividend appears sustainable going forward, given Danaos’ low TTM payout ratio near 12%. Additionally, its $1 dividend is equal to approximately 13.7% of the firm’s earnings per share of $7.29 last quarter.
Can These Dividend Stocks Keep Raising Their Payouts?
T-Mobile, GE HealthCare, and Danaos have all demonstrated a commitment to increasing shareholder returns. Their relatively low payout ratios leave room for further dividend growth, but future increases will depend on sustained earnings and cash flow. For income investors, that makes the companies' underlying financial performance just as important as their latest dividend hikes.
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