Income investors have more good news to celebrate in September 2026. Several major dividend stocks raising payouts this month include an industrial giant extending its 51-year streak, a coatings leader hitting 55 consecutive years, and a major bank delivering a 14% raise. Here’s everything you need to know about the five most important dividend increases of September 2026.
Why Dividend Stocks Raising Payouts Matter Right Now
When a company raises its dividend, it sends a clear signal to the market: management is confident in future cash flow and committed to rewarding shareholders. In an environment where interest rates remain elevated, dividend stocks raising payouts at consistent rates provide income investors with two advantages: growing income that keeps pace with inflation, and the compounding power of reinvested dividends purchasing more shares at higher yields over time.
September 2026 has delivered five notable raises from names that belong on every income investor’s radar.
5 Dividend Stocks Raising Payouts in September 2026
1. Automatic Data Processing (ADP) — 10% Raise, 51st Consecutive Year
New Quarterly Dividend: $1.70 | Annual: $6.80 | Streak: 51 years
Automatic Data Processing just completed its 51st consecutive year of dividend growth — placing it firmly among the elite Dividend Kings with over half a century of uninterrupted increases. The 10% raise announced in November 2025 (now fully in effect for 2026) brings ADP’s quarterly payout to $1.70 per share.
ADP is one of the most consistent dividend stocks raising payouts year after year because its business model is nearly recession-proof: companies must pay their employees regardless of economic conditions, and ADP processes payroll for hundreds of thousands of businesses worldwide.
Key stats:
- 51 consecutive years of increases ✅
- 10% raise — well above inflation ✅
- Next payment: October 1, 2026 (record date September 11, 2026) ✅
- Payout ratio: sustainable ~60% of earnings ✅
- ADP confirmed this milestone in its official ADP dividend increase announcement on PR Newswire.
2. PPG Industries (PPG) — 4.2% Raise, 55th Consecutive Year
New Quarterly Dividend: $0.74 | Annual: $2.96 | Streak: 55 years
PPG Industries — the global leader in paints, coatings, and specialty materials — raised its quarterly dividend by 4.2% in July 2026, from $0.71 to $0.74 per share. The September 11 payment date made this a September 2026 income event for shareholders.
At 55 consecutive years of increases, PPG is a Dividend King whose dividend history dates back to 1899 — 127 years of uninterrupted payments. With a payout ratio of approximately 37–42% of earnings, PPG’s dividend is among the most conservatively funded among dividend stocks raising payouts this month.
Key stats:
- 55 consecutive years of increases ✅
- 4.2% raise — above 2026 inflation rate ✅
- Payout ratio: ~37–42% — very conservative ✅
- Five-year dividend CAGR: approximately 4.6–5.8% ✅
3. Bank of America (BAC) — 14% Raise
New Quarterly Dividend: $0.32 | Annual: $1.28 | Payment Date: September 25, 2026
Bank of America delivered the largest percentage raise of the month — a 14% increase from $0.28 to $0.32 per share quarterly — making it the standout among dividend stocks raising payouts in September 2026 for income investors seeking yield in the financial sector.
While BAC doesn’t carry the multi-decade Aristocrat streak of ADP or PPG, its 14% raise signals aggressive capital return following Federal Reserve stress test clearance and improving net interest income. With $1.28 annualized and the stock trading around $44–$46, BAC now yields approximately 2.8–2.9%.
Key stats:
- 14% raise — largest on this list by percentage ✅
- Payment date: September 25, 2026 ✅
- Yield: approximately 2.8% at current prices ✅
- Warren Buffett holds BAC as a top Berkshire position ✅
4. PepsiCo (PEP) — 4% Raise, Dividend Aristocrat
New Quarterly Dividend: $1.48 | Annual: $5.92 | Streak: 54 years
PepsiCo raised its annual dividend by 4% in 2026, bringing the quarterly payment to $1.48 per share. With 54 consecutive years of increases, PEP is a long-tenured Dividend Aristocrat with a diversified portfolio that extends well beyond beverages — Frito-Lay snacks generate enormous free cash flow that funds dividend growth year after year.
PEP currently yields approximately 3.7% at recent prices, making it one of the higher-yielding Dividend Aristocrats among dividend stocks raising payouts this month.
Key stats:
- 54 consecutive years of increases ✅
- 4% raise — in line with long-term growth rate ✅
- Yield: approximately 3.7% ✅
- Frito-Lay + beverages = dual revenue engine ✅
5. Clorox (CLX) — 49 Years, One Away From Dividend King
New Quarterly Dividend: $1.25 | Annual: $5.00 | Streak: 49 years
Clorox raised its quarterly dividend from $1.24 to $1.25 per share in July 2026 — a modest 0.8% increase — extending its streak to 49 consecutive years. One more increase in 2027 makes CLX an official Dividend King.
The raise is smaller than prior years, which some analysts flag as a concern given CLX’s elevated free cash flow payout ratio. However, the continuation of the streak — through a period of margin pressure from raw material costs — demonstrates Clorox’s commitment to maintaining its dividend growth record heading into King territory.
Key stats:
- 49 consecutive years — one raise from Dividend King ✅
- Brands: Clorox, Hidden Valley, Burt’s Bees, Glad, Brita ✅
- Yield: approximately 5.2% at current prices ✅
- Watch for 2027 raise to confirm King status ✅
September 2026 Dividend Raises at a Glance
| Company | Ticker | Raise % | New Annual | Streak |
|---|---|---|---|---|
| Automatic Data Processing | ADP | +10% | $6.80 | 51 years |
| PPG Industries | PPG | +4.2% | $2.96 | 55 years |
| Bank of America | BAC | +14% | $1.28 | — |
| PepsiCo | PEP | +4% | $5.92 | 54 years |
| Clorox | CLX | +0.8% | $5.00 | 49 years |
What These Dividend Increases Mean for Income Investors
The Compounding Effect Is Working
Four of the five dividend stocks raising payouts this month carry streaks of 49 years or longer. That means shareholders who bought these stocks a decade ago are now collecting significantly higher income than their original yield suggested — a concept known as Yield on Cost (YOC).
An investor who bought ADP five years ago at $170 per share would have locked in a yield of approximately 2.4% at the time. Today, with $6.80 in annual dividends, that same investor’s YOC has grown to approximately 4.0% — without doing anything except holding and reinvesting dividends.
How to Use DRIP With These Stocks
All five of these dividend stocks raising payouts this month are excellent candidates for a dividend reinvestment plan (DRIP). When dividends are automatically reinvested, every raise compounds: you own more shares, those shares generate more dividends, and those dividends purchase even more shares. Over 10–20 years, this mathematical compounding is where real wealth is built.
Building a Portfolio Around Consistent Raisers
If you’re new to dividend investing, stocks like ADP, PEP, and PPG represent the core building blocks of a durable income portfolio. Learn how to evaluate them alongside the full list in our beginner’s guide to Dividend Aristocrats and discover the single most important metric — the yield — in our guide on how to calculate dividend yield.
Final Thoughts
September 2026 demonstrates exactly what income investing is about: companies that have spent decades building businesses strong enough to raise shareholder payouts — through inflation, recessions, pandemics, and rising rates. ADP’s 51st year, PPG’s 55th, and PepsiCo’s 54th aren’t coincidences. They’re the result of durable competitive advantages that generate cash regardless of the economic environment.
For income investors, dividend stocks raising payouts consistently are the foundation of long-term wealth. The five companies on this list have earned their place in diversified dividend portfolios — and their September 2026 raises remind us exactly why.
Important Legal Disclaimer
This content is for educational and informational purposes only and does not constitute financial, investment, tax, or legal advice. Dividend payments are not guaranteed and can be reduced or eliminated at any time. Past dividend history does not guarantee future payments. All investments carry risk, including potential loss of principal. Stock prices and yields fluctuate daily. All figures in this article are approximate and sourced from publicly available data as of September 2026 — verify current data before making any investment decision. Consult a qualified financial advisor before investing. The author and Money Growth Lab are not liable for any investment decisions made based on this content.