Beyond Yield: 5 Stocks Outperforming the Market with Rising Dividends

Stocks Delivering Strong Total Returns and Growing Dividends

Investors often look for high dividend yields as a sign of a strong investment. However, the true measure of a stock's performance is its total return, which includes both the dividend yield and the change in share price. These two components can sometimes work against each other; as share prices fall, dividend yields rise, and vice versa. Below are five stocks that have been performing well in 2025, delivering total returns that outpace the overall market while also increasing their dividends significantly.

Comfort Systems USA (FIX): A Rising Dividend with Strong Growth

Comfort Systems USA (NYSE: FIX) recently announced a 10% increase to its quarterly dividend, raising it to $0.50 per share. This increase will be payable on August 25 to shareholders of record on August 15. Despite this boost, the stock currently has an indicated dividend yield of just under 0.3%.

However, this low yield isn’t due to a lack of effort from the company. Since the beginning of 2022, Comfort Systems has raised its dividend more than ten times, with its quarterly payout nearly quadrupling. The company’s stock has surged over 600% since 2022, which has pushed the yield down despite the consistent dividend increases. In 2025 alone, shares have risen by around 64%, reflecting strong earnings momentum and investor confidence.

Wingstop (WING): Steady Dividend Growth with Impressive Performance

Next up is Wingstop (NASDAQ: WING), which has delivered a total return of nearly 28% in 2025. The stock saw a significant jump after the company reported better-than-expected earnings, with adjusted earnings per share rising in the quarter. Wingstop also announced an 11% increase in its quarterly dividend, further supporting its appeal to long-term investors.

The stock currently has an indicated dividend yield of just over 0.3%, but Wingstop has shown strong progress in growing its dividend over the past three years. Its quarterly payout has increased at a compound annual growth rate of more than 16% during this period. The company's strong performance reflects growing investor confidence and robust earnings momentum.

McKesson (MCK): Consistent Dividend Increases and Strong Returns

Healthcare stock McKesson (NYSE: MCK) recently announced a 15% increase in its quarterly dividend, raising it to 82 cents per share. This increase marks the fourth consecutive year that the company has boosted its dividend by 15%, showing a clear commitment to returning capital to shareholders.

McKesson’s stock has provided a total return of around 23% in 2025, making it a strong performer in the healthcare sector. The company’s track record of steady dividend increases highlights its financial strength and long-term value for investors.

Encompass Health (EHC): Rebuilding Its Dividend After a Cut

Encompass Health (NYSE: EHC) announced a nearly 12% increase in its dividend, boosting its quarterly payment to 19 cents per share. The new dividend is payable on October 15 to holders of record on October 1, giving the stock an indicated dividend yield of 0.70%.

Encompass Health has been gradually rebuilding its dividend after a significant cut in 2022, following the spin-off of part of its business. The company has consistently increased its dividend since then, signaling a renewed focus on long-term capital returns. With improving operational stability, investors could see the dividend climb back toward pre-2022 levels.

Welltower (WELL): Highest Yield Among Healthcare REITs

Last on the list is Welltower (NYSE: WELL), a healthcare real estate investment trust (REIT). The company is lifting its quarterly dividend by 10.4% to 74 cents per share, payable on August 21 to stockholders of record as of August 12. The stock holds the highest indicated dividend yield on the list at just under 1.8%.

While this yield is lower than the average of 5.1% among large-cap U.S. healthcare REITs, Welltower has achieved the most impressive total return among this group in 2025, with over 33% gains. Investors are rewarding the company's improving fundamentals and consistent dividend growth, with further yield compression possible as payouts rise.

Dividend Increases Enhance Total Return Potential

Overall, these five companies are taking key steps to generate income by increasing their dividends. This is particularly important for these names, as they have seen significant share price appreciation recently. Dividend boosts help offset the decline in dividend yields that comes with rising share prices, giving these companies the opportunity to have dividends as a meaningful part of their overall return profile going forward.