Top 42 Dividend Growth Stocks for High Returns in 2024

Are you looking to build a strong, passive income stream with dividend growth stocks?

Investing in dividend growth stocks can be a powerful strategy for generating a reliable and passive income source.  With the potential to provide both capital appreciation and consistent dividend payments, these stocks have garnered significant attention from investors seeking long-term financial stability. 

In this article, we delve into the fundamentals of dividend growth investing, highlighting key benefits and strategies to help you make informed decisions and build a robust investment portfolio.

Best Dividend Growth Stocks

Unitedhealth

Unitedhealth (UNH) boasts a modest dividend yield of 1.33% and a conservative payout ratio of 30.64%. As a leading provider of healthcare benefits, Unitedhealth’s stable financial performance has contributed to its reputation as a reliable dividend growth stock.

>> Unitedhealth Dividend History

Paychex

Paychex (PAYX) offers a promising dividend yield of 3.22% with a relatively higher payout ratio of 76.19%. Known for its comprehensive HR solutions, Paychex’s commitment to consistent dividend payments underscores its appeal to income-oriented investors.

>> Paychex Dividend History

Eastman Chemical

Eastman Chemical (EMN) presents an attractive dividend yield of 4.20% alongside a moderate payout ratio of 63.45%. With a strong focus on innovation and sustainable practices, Eastman Chemical remains a notable contender within the dividend growth stock landscape.

>> Eastman Chemical Dividend History

Baxter International

Baxter International (BAX) exhibits a commendable dividend yield of 3.62% and a reasonable payout ratio of 56.50%. Recognized for its contributions to critical care, Baxter International’s stable dividends reflect the company’s commitment to shareholder value.

>> Baxter International Dividend History

Estee Lauder

Estee Lauder (EL) delivers a modest dividend yield of 2.06% and a relatively high payout ratio of 92.47%. As a prominent name in the beauty and skincare industry, Estee Lauder’s consistent dividend payments demonstrate its resilience and market positioning.

>> Estee Lauder Dividend History

Williams-Sonoma

Williams-Sonoma (WSM) offers a competitive dividend yield of 2.43% paired with a conservative payout ratio of 23.30%. With a strong presence in the home furnishings sector, Williams-Sonoma’s commitment to sustaining dividends highlights its financial stability.

>> Williams-Sonoma Dividend History

Discover Financial Services

Discover Financial Services (DFS) presents an enticing dividend yield of 3.33% alongside a low payout ratio of 19.26%. Noted for its financial products and services, Discover Financial Services’ consistent dividends underscore its strong financial performance and commitment to shareholder value.

>> Discover Financial Services Dividend History

Comerica

Comerica (CMA) stands out with a substantial dividend yield of 7.34% and a moderate payout ratio of 31.82%. Renowned for its financial services and banking solutions, Comerica’s generous dividends reflect its dedication to rewarding shareholders.

>> Comerica Dividend History

Essex Property Trust

Essex Property Trust (ESS) boasts a competitive dividend yield of 4.40% and an elevated payout ratio of 112.02%. As a major player in the real estate investment trust (REIT) sector, Essex Property Trust’s significant dividends reflect its focus on long-term value creation for investors.

>> Essex Property Trust Dividend History

Albemarle

Albemarle (ALB) provides a modest dividend yield of 1.26% and an exceptionally low payout ratio of 4.78%. Renowned for its specialty chemicals, Albemarle’s consistent dividends reflect the company’s robust financial position and commitment to sustainable growth.

>> Albemarle Dividend History

Chubb

Chubb (CB) demonstrates a modest dividend yield of 1.61% alongside a conservative payout ratio of 19.96%. Known for its insurance and reinsurance services, Chubb’s consistent dividends reflect its stable financial performance and commitment to rewarding shareholders.

>> Chubb Dividend History

Linde

Linde (LIN) presents a moderate dividend yield of 1.35% coupled with a reasonable payout ratio of 41.32%. Renowned for its industrial gases and engineering expertise, Linde’s dividends underscore its financial stability and commitment to shareholder value.

>> Linde Dividend History

Ecolab

Ecolab (ECL) offers a steady dividend yield of 1.33% and a manageable payout ratio of 51.09%. Noted for its water, hygiene, and energy technologies, Ecolab’s consistent dividends highlight its resilience and commitment to sustainable solutions.

>> Ecolab Dividend History

Roper Technologies

Roper Technologies (ROP) displays a modest dividend yield of 0.56% and a conservative payout ratio of 23.64%. Known for its diversified technology solutions, Roper Technologies’ stable dividends reflect its focus on long-term growth and shareholder value.

>> Roper Technologies Dividend History

General Dynamics

General Dynamics (GD) delivers a competitive dividend yield of 2.21% alongside a reasonable payout ratio of 43.61%. Recognized for its aerospace and defense products, General Dynamics’ consistent dividends reflect its strong financial performance and market position.

>> General Dynamics Dividend History

Chevron

Chevron (CVX) boasts an attractive dividend yield of 4.13% with a moderate payout ratio of 44.17%. Noted for its energy and petroleum products, Chevron’s consistent dividends underscore its financial resilience and commitment to shareholder rewards.

>> Chevron Dividend History

Atmos Energy

Atmos Energy (ATO) presents a promising dividend yield of 2.78% along with a manageable payout ratio of 49.91%. Recognized for its natural gas distribution services, Atmos Energy’s stable dividends reflect its commitment to providing value to shareholders.

>> Atmos Energy Dividend History

Cardinal Health

Cardinal Health (CAH) exhibits a competitive dividend yield of 2.20% and a high payout ratio of 198.77%. With a focus on healthcare services and products, Cardinal Health’s dividends reflect its commitment to returning value to shareholders despite its relatively high payout ratio.

>> Cardinal Health Dividend History

McCormick

McCormick (MKC) offers a notable dividend yield of 2.45% alongside a reasonable payout ratio of 64.17%. Renowned for its spices and flavoring products, McCormick’s consistent dividends reflect its strong market presence and commitment to shareholder value.

>> McCormick Dividend History

Cintas

Cintas (CTAS) provides a modest dividend yield of 1.07% alongside a moderate payout ratio of 36.09%. Noted for its specialized services, including uniform rental and facility services, Cintas’ consistent dividends reflect its financial stability and commitment to long-term growth.

>> Cintas Dividend History

Amcor

Amcor (AMCR) presents an impressive dividend yield of 5.53% alongside a moderate payout ratio of 69.15%. Known for its packaging solutions, Amcor’s consistent dividends highlight its robust financial performance and commitment to shareholder value.

>> Amcor Dividend History

Exxon Mobil

Exxon Mobil (XOM) boasts a competitive dividend yield of 3.59% with a conservative payout ratio of 36.15%. Renowned for its energy and petroleum products, Exxon Mobil’s stable dividends reflect its strong market position and commitment to rewarding shareholders.

>> Exxon Mobil Dividend History

Aflac

Aflac (AFL) demonstrates a commendable dividend yield of 2.17% and a conservative payout ratio of 21.98%. Noted for its insurance services, Aflac’s consistent dividends underscore its financial stability and commitment to long-term shareholder value.

>> Aflac Dividend History

Franklin Resources

Franklin Resources (BEN) offers an attractive dividend yield of 5.33% alongside a moderate payout ratio of 74.38%. Renowned for its investment management services, Franklin Resources’ consistent dividends reflect its strong financial performance and dedication to shareholder rewards.

>> Franklin Resources Dividend History

Clorox

Clorox (CLX) delivers a substantial dividend yield of 4.12% with a notably high payout ratio of 393.33%. Known for its consumer and professional products, Clorox’s consistent dividends reflect its resilience and commitment to long-term shareholder value.

>> Clorox Dividend History

Medtronic

Medtronic (MDT) provides a notable dividend yield of 3.94% alongside a high payout ratio of 100.74%. Recognized for its medical devices and technologies, Medtronic’s consistent dividends reflect its market strength and commitment to sustaining shareholder value.

>> Medtronic Dividend History

Pentair

Pentair (PNR) offers a modest dividend yield of 1.50% coupled with a conservative payout ratio of 28.16%. Known for its water and fluid solutions, Pentair’s stable dividends reflect its financial stability and commitment to sustainable growth.

>> Pentair Dividend History

Walgreens Boots Alliance

Walgreens Boots Alliance (WBA) stands out with a significant dividend yield of 9.10% alongside a moderate payout ratio of 38.17%. Noted for its pharmaceutical and retail services, Walgreens Boots Alliance’s generous dividends reflect its focus on long-term shareholder value.

>> Walgreens Boots Alliance Dividend History

Automatic Data Processing

Automatic Data Processing (ADP) exhibits a competitive dividend yield of 2.31% alongside a reasonable payout ratio of 59.38%. Renowned for its human capital management solutions, Automatic Data Processing’s stable dividends reflect its commitment to sustaining shareholder value.

>> Automatic Data Processing Dividend History

Lowe’s

Lowe’s (LOW) offers a notable dividend yield of 2.34% alongside a moderate payout ratio of 41.14%. Noted for its home improvement products and services, Lowe’s consistent dividends reflect its financial stability and commitment to long-term growth.

>> Lowe’s Dividend History

Consolidated Edison

Consolidated Edison (ED) demonstrates a competitive dividend yield of 3.70% alongside a reasonable payout ratio of 45.91%. Known for its energy services, Consolidated Edison’s consistent dividends reflect its stable financial performance and commitment to shareholder value.

>> Consolidated Edison Dividend History

Walmart

Walmart (WMT) offers a modest dividend yield of 1.40% and a conservative payout ratio of 43.46%. Renowned for its retail services, Walmart’s consistent dividends underscore its strong market position and commitment to long-term shareholder value.

>> Walmart Dividend History

S&P Global

S&P Global (SPGI) presents a moderate dividend yield of 1.04% along with a reasonable payout ratio of 49.30%. Noted for its financial information and analytics services, S&P Global’s stable dividends reflect its resilience and commitment to sustained growth.

>> S&P Global Dividend History

Nucor

Nucor (NUE) provides a modest dividend yield of 1.37% and a notably low payout ratio of 10.32%. Renowned for its steel and related products, Nucor’s consistent dividends highlight its financial stability and commitment to long-term growth.

>> Nucor Dividend History

VF

VF Corporation (VFC) boasts a significant dividend yield of 7.01% alongside a high payout ratio of 536.67%. Known for its apparel and footwear brands, VF Corporation’s generous dividends reflect its commitment to providing value to shareholders despite the high payout ratio.

>> VF Dividend History

PepsiCo

PepsiCo (PEP) delivers an attractive dividend yield of 2.98% with a relatively high payout ratio of 80.50%. Noted for its food and beverage products, PepsiCo’s consistent dividends reflect its financial stability and commitment to long-term shareholder value.

>> PepsiCo Dividend History

Becton Dickinson

Becton Dickinson (BDX) exhibits a modest dividend yield of 1.45% alongside a reasonable payout ratio of 65.10%. Recognized for its medical technology and healthcare solutions, Becton Dickinson’s stable dividends reflect its strong market position and commitment to sustaining shareholder value.

>> Becton Dickinson Dividend History

AbbVie

AbbVie (ABBV) provides an impressive dividend yield of 4.37% and a high payout ratio of 160.27%. Known for its pharmaceutical products, AbbVie’s substantial dividends reflect its robust financial performance and commitment to rewarding shareholders.

>> AbbVie Dividend History

PPG Industries

PPG Industries (PPG) offers a competitive dividend yield of 2.13% alongside a conservative payout ratio of 42.04%. Renowned for its paints and coatings, PPG Industries’ consistent dividends reflect its financial stability and commitment to long-term growth.

>> PPG Industries Dividend History

Target

Target Corporation (TGT) presents a notable dividend yield of 4.05% alongside a reasonable payout ratio of 59.26%. Noted for its retail services, Target Corporation’s consistent dividends reflect its financial stability and commitment to sustaining shareholder value.

>> Target Dividend History

Sysco

Sysco Corporation (SYY) exhibits a promising dividend yield of 3.05% and a moderate payout ratio of 56.77%. Known for its food products and services, Sysco Corporation’s stable dividends underscore its financial stability and commitment to long-term shareholder value.

>> Sysco Dividend History

Stanley Black & Decker

Stanley Black & Decker (SWK) delivers a notable dividend yield of 3.85% alongside a notably high payout ratio of 300.00%. Renowned for its tools and storage products, Stanley Black & Decker’s generous dividends reflect its commitment to providing value to shareholders, despite the higher payout ratio.

>> Stanley Black & Decker Dividend History

Are dividend growth stocks a good investment?

Investing in dividend growth stocks can offer a compelling opportunity for long-term wealth accumulation. These stocks often provide a steady income stream, making them particularly attractive for investors seeking reliable returns, especially during market downturns. 

Moreover, companies with a consistent history of increasing dividends demonstrate financial strength and management confidence, indicating a positive outlook for potential capital appreciation. 

However, it’s crucial to conduct thorough research and consider factors such as dividend sustainability, company performance, and market conditions before making investment decisions in this asset class.

Factors to Consider when Investing in dividend growth stocks

When venturing into dividend growth stock investments, it’s crucial to assess various factors. These include the company’s historical dividend growth rate, its payout ratio, overall financial health, and sustainability of the business model. 

Additionally, evaluating industry trends, competitive positioning, and macroeconomic conditions can provide valuable insights for making informed investment decisions in this asset class. 

A comprehensive analysis of these factors can help investors build a diversified portfolio of robust dividend growth stocks, ensuring long-term financial stability and potential wealth accumulation.



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