Dividend Hike Portfolio Update – October 6, 2025
Portfolio Up 16% YTD as Dividend Raises Continue
The Dividend Hike Portfolio continues to outperform, posting a 16.2% return YTD as of October 6. This is notably ahead of The Dividend Heroes (+10.2%) and the Dividend Aristocrats (+5.8%), underlining the strength of a portfolio focused on consistent dividend growers.
KEY POINTS IN THIS ARTICLE
Dividend Hike Portfolio up 16.2% YTD, ahead of peers.
Lam Research, KLA, and Amphenol lead the gains.
21 of 25 holdings have raised dividends this year, averaging +13%.
Yields stay low after strong share price growth.
We reinvested $306.34 in dividends from Q3
Semiconductor leaders like Lam Research LRCX 0.00%↑ and KLA Corp KLAC 0.00%↑ are driving much of the gains, reflecting strong demand for chipmaking equipment. Industrial and engineering names such as Curtiss-Wright CW 0.00%↑ and Watts Water WTS 0.00%↑ have also contributed, benefiting from ongoing infrastructure and industrial spending.
In the software and services space, companies like Amphenol APH 0.00%↑ , which supplies connectors and electronic components, continue to see robust growth. On the downside, energy retailer Murphy USA MUSA 0.00%↑ and water technology company Badger Meter BMI 0.00%↑ have lagged, while Texas landowner Texas Pacific Land TPL 0.00%↑ and animal health giant Zoetis ZTS 0.00%↑ are down, showing that even well-diversified dividend-focused portfolios face uneven sector performance.
Overall, the portfolio has grown from a $100,000 starting point to $116,172, generating a current yield of 1.1%, demonstrating how selective dividend growers can combine income with strong capital appreciation.
Dividend Update
The average dividend increase in 2025 for this portfolio is 13%, down from 19.9% in 2024. Year-to-date, 21 of 25 holdings have raised their dividends, with the remaining four—Zoetis, Texas Pacific Land, Deere & Co, and Amphenol—expected later this year.
The average dividend increase in 2025 for the dividend hike portfolio is 13%, down from 19.9% in 2024. We expect four more dividend hikes later this year by Zoetis, Amphenol, Texas Pacific Land and Deere & Co
This is a solid record and a reminder that dividend growth and share price appreciation can go hand in hand, especially in 2025. We reinvest the dividends collected four times every year. In Q3 we received $306.34 in dividends and used this cash to buy extra shares in all 25 holdings.
The most recent increase came from American Financial Group AFG 0.00%↑ , which had already paid a special dividend of $2 earlier this year. Lam Research also recently raised its dividend; however, the yield remains low due to the strong share price gains. We do feel some caution around current valuation levels.
U.S. Dividend Hikes – Week 40 of 2025
The first week of October and last weeks of September brought a fresh wave of dividend increases across U.S. markets, led by household names spanning coffee chains, industrial powerhouses, tech consultants, and consumer staples. From Starbucks to Honeywell
Disclaimer: The information provided here is for informational purposes only and should not be considered financial advice. Investors should conduct their own research or consult with a financial advisor before making any investment decisions.