Best Dividend Growth Stocks to Maximize Your Returns - 2024

Investing in dividend stocks is a proven strategy for generating steady income, but when you focus on dividend growth stocks, you open the door to even greater financial potential. Dividend growth stocks are companies that not only pay regular dividends but also consistently increase those payouts over time. This growth is a key indicator of financial health and long-term stability, making these stocks especially attractive for investors who are looking to build wealth while still enjoying passive income. As dividends increase, your return on investment grows, creating a compounding effect that can significantly boost your portfolio’s value. We’ll dive into a list of top dividend growth stocks that offer both reliable income and the potential for long-term capital appreciation.

StockDividend YieldPay-out RatioP/E RatioP/B RatioROE5y Dividend Growth10y Dividend Growth
UnitedHealth1.42%51.26%1.33%0.20%0.16%0.00%0.00%
Paychex2.65%79.29%30.63%13.51%0.46%9.68%17.33%
Lithia Motors0.53%7.02%13.17%1.59%0.12%10.99%17.28%
MarketAxess1.12%40.38%35.52%7.14%0.21%11.38%18.67%
Caterpillar1.36%24.61%18.11%9.97%0.58%8.80%11.26%
NextEra Energy2.70%59.48%22.53%3.13%0.14%-15.88%-3.39%
Albemarle1.47%-14.36%-6.85%1.25%-0.18%3.61%5.24%
Linde1.21%40.92%34.28%5.59%0.16%9.10%7.83%
West Pharmaceutical Services0.25%11.73%46.60%8.46%0.18%6.20%1.40%
Ecolab0.92%32.16%34.42%8.23%0.25%5.03%8.39%
Roper Technologies0.54%21.26%40.52%3.23%0.08%10.60%18.62%
General Dynamics2.01%41.22%20.92%3.31%0.17%7.54%12.00%
Atmos Energy2.19%47.27%21.81%1.87%0.09%8.85%7.86%
Cardinal Health1.63%39.27%23.72%-9.14%-0.38%1.10%5.38%
T. Rowe Price4.00%53.90%13.08%2.68%0.21%11.75%12.37%
Cintas1.11%33.66%54.81%22.33%0.40%32.75%27.07%
Amcor4.79%94.93%19.61%3.85%0.20%2.25%0.00%
Exxon Mobil3.26%47.99%15.58%1.95%0.14%2.64%4.11%
Aflac1.87%27.72%15.64%2.40%0.16%5.26%1.70%
Sherwin-Williams0.72%27.33%38.74%23.84%0.68%-6.79%1.92%
Medtronic3.24%84.54%25.63%2.27%0.09%13.50%9.60%
McDonald's2.30%58.34%25.60%-40.77%-1.69%8.26%7.16%
Lowe's1.64%37.18%22.70%-11.59%-0.48%19.29%20.25%
Walmart0.87%33.23%38.20%8.53%0.23%1.85%1.95%
S&P Global0.70%32.01%45.40%4.74%0.10%12.47%12.39%
Nucor1.39%20.61%14.51%1.79%0.12%6.09%3.46%
PepsiCo2.46%75.99%23.73%11.41%0.49%6.63%8.24%
Abbott Laboratories1.89%65.30%34.97%5.07%0.15%12.74%13.80%
Becton Dickinson1.69%63.73%37.83%1.14%0.05%4.03%6.13%
AbbVie3.42%212.79%62.69%53.23%0.66%10.52%13.98%
W.W. Grainger0.66%22.58%32.44%16.94%0.55%6.37%7.36%
Illinois Tool Works2.06%48.42%23.69%24.13%1.12%8.77%12.98%
Target3.38%46.70%13.88%4.19%0.31%11.59%10.68%
Hormel Foods3.60%78.17%22.09%2.19%0.10%7.96%4.93%
Johnson & Johnson3.22%79.71%24.98%5.23%0.21%5.83%6.14%
Coca-Cola3.05%78.28%26.31%10.33%0.40%3.36%5.09%