Key points
- PayPal posted its first-ever earnings call and announced a major AI partnership with OpenAI.
- Visa increased its dividend by 14%, maintaining a strong record of growth.
- Seagate, one of the best-performing S&P 500 stocks in 2025, has increased its dividend and is offering a yield of more than 1.1%, which is very competitive in the technology sector.
Three mega-cap stocks just announced big dividend increases. This includes one of the world’s largest payments companies, which posted its first-ever earnings, and one of the best-performing S&P 500 stocks of 2025.
Below, we’ll break down the upcoming earnings news from these three names.
PayPal begins paying dividends, providing income for the first time in more than 20 years
Combined with strong diffusion Third quarter 2025 earnings results On October 28, PayPal (NASDAQ: PYPL) It announced that it will begin distributing quarterly dividends.
It’s been a long time coming for PayPal to start paying dividends, as the stock went public in 2002. Despite this long wait, PayPal is making up for lost time by starting with a large dividend.
The company’s first dividend will be 14 cents per share, paid on December 10 to shareholders of record as of November 19. Immediately, this gives PayPal an indicated dividend yield of about 0.8%, which is already higher than any stock in the company. 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, offering potential for increased earnings for the company.
However, PayPal’s aggressive stock buybacks could reduce future earnings growth by concentrating earnings per share without proportionally increasing cash flow available for distribution.
The company also announced a new partnership with OpenAI, which will enable PayPal users to buy and sell products using ChatGPT. ChatGPT About 800 million usersso this partnership can significantly increase the volume of transactions on the PayPal network, leading to the growth of the company.
Visa issues a big 14% dividend increase alongside the dividend increase
While PayPal is a prominent company in the payments industry, View (NYSE: V) He is her king.
On October 28th Third quarter earnings reportVisa reported improved sales and earnings per share, as well as a 14% increase in profits. Visa’s new quarterly dividend of 67 cents per share is paid on December 1 to shareholders of record as of November 12. This gives the stock a stated dividend yield of about 0.7%.
Dividend yields tend to fall as stock prices rise, unless earnings growth is proportional to the increase in stock prices, so Visa’s relatively low yield is also a testament to this stock’s impressive performance.
Over the past 15 years, Visa shares have risen at a compound annual growth rate of about 21%, outperforming the 12.4% CAGR of the S&P 500 by a significant margin.
However, Visa has done a great job of raising its dividend over the years, as its dividend also grew at a CAGR of 21% over that period, leaving its yield roughly the same as it was 15 years ago.
Seagate delivers a strong dividend yield for its tech stock even after its Triple-Bagger performance
Last up is one of the best performing stocks on the market for 2025, Seagate Technology (NASDAQ: STX).
Seagate had a total return of just over 200% this year. Among stocks in the S&P 500, Seagate’s yield is the third highest, trailing only Robinhood Markets (NASDAQ: HOOD) and Western Digital (NASDAQ: WDC)which have returns of about 290% and 230%.
Rapid demand for hard drives from data center operators has been the dominant force behind Seagate’s meteoric rise. The company published very impressive Profits On October 28, it announced a 3% increase in its quarterly profits. The company’s next dividend of 74 cents per share will be paid on January 9, 2026 to shareholders of record as of December 24.
This gives the stock a strong dividend yield of 1.08%. This is in line with the roughly 1.1% return for the S&P 500. It is also more than double the 0.5% return for the S&P 500. Technology Select Sector SPDR Fund (NYSEARCA: XLK)Which shows that, especially among large US technology stocks, Seagate’s returns are very competitive.
PYPL, V, STX: Different flavors of dividend stocks
All three of these companies offer something to dividend investors. PayPal is off to a strong start with its first dividend, while Visa’s earnings growth rate is impressive. Meanwhile, Seagate’s yield is compelling compared to other technology stocks.
For investors looking for income in a technology-led world, these names offer compelling entry points — whether you’re after growth, yield, or a little of both.
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About Leo Miller
expertise
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 positions as an investment research associate at Laird Norton Wetherby and as a research analyst at Sungarden Investment Publishing, where he gained practical experience in equity valuation and portfolio strategies.
- credentials: He holds a BBA in Finance from the University of Washington Foster School of Business, a top-ranking public business school. He has passed the CFA Level II exam.
- Financial experience: Liu began researching and investing in gold mining stocks in 2019 and began writing about finance and investing in 2021. He joined DividendStocks.com as a contributing writer in 2024, covering both stocks and ETFs. A strong research foundation and direct exposure to financial markets shape his views.
- Focus on writing: He specializes in technology stocks, dividend-paying companies, ETFs, and value-oriented opportunities. His work emphasizes clarity, actionable insights, and education for investors at all levels.
- Investment approach: Liu follows a disciplined, long-term investment 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 is passionate about analyzing what makes companies tick, and sharing those insights to guide informed investment decisions. As he put it: “A robust analysis requires separating the wheat from the chaff.”
- Fun fact: Leo credits his grandfather with sparking his interest in investing and is a lifelong animal lover.
- Areas of expertise: Fundamental analysis, economics, industry and sector analysis
education
Bachelor of Business Administration, Finance, Foster School of Business at the University of Washington
