Best Dividend Stocks to Buy Now: Top Picks for Sustainable Growth
Dividend investing is a popular strategy for generating steady income while maintaining the potential for capital appreciation. Investors often look for stocks with high yields, but a more prudent strategy might involve focusing on dividend growth stocks. These are firms that not only distribute dividends but also regularly raise their payout amounts. This approach suggests a strong financial health and a commitment to returning value to shareholders. In this blog, we’ll explore some of the best dividend stocks to buy now.
Best Dividend Stocks to Buy Now
Investing in dividend growth stocks is a strategy that prioritizes long-term income growth over immediate high yields. Here’s a look at some top performers that have shown exceptional annual dividend growth, suggesting they could continue to enhance shareholder value in the years to come.
Top Dividend Growth Stocks of April 2024
1. MSCI Inc. (NYSE: MSCI)
- 3-Year Average Annual Dividend Growth: 27.1%
- Overview: MSCI is renowned for its financial services, particularly its analytics and global indices, which have shown remarkable growth, supporting robust dividend increases.
2. The Hershey Company (NYSE: HSY)
- 3-Year Average Annual Dividend Growth: 19.4%
- Overview: Hershey’s position as a leading confectionery manufacturer allows it to generate stable cash flows, enabling consistent dividend growth.
3. Target Corporation (NYSE: TGT)
- 3-Year Average Annual Dividend Growth: 17.4%
- Overview: Despite the retail sector’s volatility, Target has maintained strong financial health, supporting a steady rise in dividends.
4. Domino’s Pizza Inc. (NYSE: DPZ)
- 3-Year Average Annual Dividend Growth: 17.1%
- Overview: As one of the largest pizza chains globally, Domino’s has leveraged its extensive network and delivery model to drive earnings and dividends.
5. Marsh & McLennan Companies, Inc. (NYSE: MMC)
- 3-Year Average Annual Dividend Growth: 15.2%
- Overview: This global professional services firm has a diverse portfolio that has contributed to its strong financial performance and dividend increases.
6. Automatic Data Processing, Inc (NASDAQ: ADP)
- 3-Year Average Annual Dividend Growth: 14.6%
- Overview: ADP, a leader in human resources management software and services, shows robust dividend growth linked to its consistent performance in the B2B sector.
7. UnitedHealth Group Incorporated (NYSE: UNH)
- 3-Year Average Annual Dividend Growth: 14.6%
- Overview: As a giant in the healthcare sector, UnitedHealth’s expanding services and coverage capabilities have bolstered its dividend profile.
8. ITT Inc. (NYSE: ITT)
- 3-Year Average Annual Dividend Growth: 13.2%
- Overview: ITT’s diverse industrial manufacturing services allow it to manage economic cycles more effectively, supporting a strong dividend growth trajectory.
9. Elevance Health, Inc. (NYSE: ELV)
- 3-Year Average Annual Dividend Growth: Information not provided
- Overview: Formerly known as Anthem, Elevance Health continues to benefit from the broad healthcare sector’s growth, helping it maintain a solid dividend increase pattern.
Conclusion
The best dividend stocks to invest in right now are those that offer not just a current yield but also a promise of increasing payouts in the future. Companies like MSCI, Hershey, and UnitedHealth Group not only provide dividends but also demonstrate financial resilience and growth, essential for sustaining dividend hikes. By focusing on dividend growth stocks, investors can enjoy both passive income and long-term value appreciation. For those looking to build or diversify their investment portfolios, these dividend growth stocks present a compelling opportunity, balancing immediate returns with future financial security.
