These 10 Dividend Growth Stocks Could Increase Their Dividends By 10%+ Per Year

Sep. 28, 2019 4:12 PM ETApple Inc. (AAPL)CAT, JNJ
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Long-Term Horizon, Dividend Investing, High Quality Dividends

Contributor Since 2014

Sure Dividend helps individual investors find high quality dividend growth stocks with strong competitive advantages suitable for long-term holding.

The authors who write for Sure Dividend on Seeking Alpha are as follows:

Bob Ciura

Ben Reynolds

Josh Arnold


  • Income investors have a tendency to focus on the highest dividend yields, while ignoring stocks with lower current yields.
  • This could be misguided, as lower-yielding stocks could be better investments over the long term if they can increase their payouts at a high rate.
  • This article discusses 10 dividend stocks with the potential for double-digit dividend growth over the next 5-10 years.

Income investors may have a tendency to focus on stocks with the highest dividend yields. But dividend growth is also an important consideration when constructing an income-focused portfolio.

While high-yield stocks are appealing for the income they provide today, dividend growth stocks are equally appealing due to the potential for even higher dividends down the road.

For example, the Dividend Aristocrats are an exclusive group of high-quality dividend growth stocks. The Dividend Aristocrats represent 57 companies in the S&P 500 Index, that have each raised their dividends for at least 25 consecutive years.

Investors should focus on high-quality companies with durable competitive advantages, consistent growth, and the ability to raise their dividends over the long term.

These 10 dividend growth stocks are not all on the list of Dividend Aristocrats. But in any case, they have the potential to raise their dividends at a high rate each year, and perhaps be among the future Dividend Aristocrats.

10%+ Dividend Growth Stock #10: Caterpillar (CAT)

Caterpillar has grown since its founding in 1925 to a massive, global manufacturer of construction and mining equipment, as well as a variety of industrial engine applications. Caterpillar is a high-quality dividend growth stock, as the company recently joined the list of Dividend Aristocrats with its 25th consecutive annual dividend increase.

The $69 billion market capitalization company operates a financial services segment, as well as construction, resource industries, and energy & transportation businesses, respectively.

10%+ Dividend Growth Stock #9: Johnson & Johnson (JNJ)

Johnson & Johnson is a global diversified health care company, and is a leader in pharmaceuticals, medical devices, and health care-related consumer products. The company was founded in 1886 and now has a market capitalization of $347 billion.

The company’s three divisions combine to produce $82 billion in annual revenue, with about half of that coming from pharmaceuticals. Johnson & Johnson also has a large consumer products business with multiple billion-dollar brands.

10%+ Dividend Growth Stock #8: Apple Inc. (AAPL)

Apple Inc. is a global technology company that designs, manufactures, and sells consumer products such as smartphones, smartwatches, and personal computers. Apple has also recently grown immensely in the service space in recent years, growing its App Store business through music, apps, and subscription sales.

Apple was founded in 1976, enjoys $260 billion in annual revenue, and is valued at $984 billion, making it one of the most valued companies in the world.

Apple has done a remarkable job in recent years growing its earnings-per-share, which has afforded it the ability to return capital to shareholders on a scale that is unlike any other company. We expect 6%-7% annual earnings-per-share growth over the next five years, which represents a slight slowdown from its historical rate.

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Disclosure: I am/we are long AAPL.

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