🔍 Notable Dividend Growth Stocks to Watch
| Stock | Ticker | Sector / Industry | What Makes It Stand Out |
|---|---|---|---|
| Johnson & Johnson (JNJ) | JNJ | Healthcare | Over 60 years of consecutive dividend increases. Offers stability, especially in defensive sectors. DiviRich+2XTB.com+2 |
| Procter & Gamble | PG | Consumer Staples | Long history of dividend growth (65+ years). Very resilient in economic downturns. tradersdna.com+2xs.com+2 |
| Microsoft | MSFT | Technology & Cloud / Software | While yield is modest, its free cash flow, growth in AI/cloud, and consistent dividend growth make it attractive. Nasdaq+2DiviRich+2 |
| PepsiCo | PEP | Consumer Staples / Food & Beverage | Strong brand portfolio, stable cash flows, consistent dividend hikes. DiviRich+2XTB.com+2 |
| Realty Income Corporation | O | REIT / Real Estate Income | Known for monthly dividends and long history of increases. Great for income investors wanting steady cash flow. XTB.com+1 |
| Novo Nordisk | NVO | Pharmaceuticals / Healthcare | Strong growth in its disease treatment pipelines; consistent dividend growth; good earnings prospects. Nasdaq |
| AbbVie | ABBV | Pharmaceuticals | Robust cash flows from its product portfolio, history of growing dividends. AInvest |
| British American Tobacco | BTI | Consumer Goods / Tobacco | High yield + history of raising dividends. More risk (regulation, demand shifts), so balance carefully. Iceburg Wealth+1 |
| Colgate-Palmolive | CL | Consumer Staples / Hygiene & Home Care | Very long dividend growth streak (60+ years). Stable business model. TheAdviserMagazine.com+1 |
⚠️ What to Check Before Choosing Dividend Growth Stocks
These are some criteria to compare and make sure a company is likely to keep growing its dividend:
- Dividend Growth History — How many years in a row has the company raised its dividends?
- Payout Ratio — The percentage of earnings paid out as dividends. Too high and the company might struggle during slower periods.
- Free Cash Flow — Enough free cash flow to cover dividends + operations + investment.
- Business Stability / Competitive Advantages — Brands, product demand, barriers to competition help in maintaining and growing dividends.
- Debt Levels — High debt can squeeze ability to raise dividends.
- Sector Sensitivity — Some sectors are more cyclically risky.
