Recs

5

The Fastest-Growing Dividend Aristocrats

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Dividend-paying companies are an oasis in the desert of underperforming stocks. They offer solid payouts today and the promise of capital gains tomorrow. According to a study by Ibbotson, reinvested dividends made up about 40% of total stock returns from 1926 to 2006. In fact, dividend investing is so appealing that superinvestor Warren Buffett has made it a significant component of his portfolio.

When searching for great dividend stocks, it makes a lot of sense to start with companies that have been playing the dividend game the longest. Standard & Poor's has culled the dividend winners from the also-rans in a list it calls the "dividend aristocrats."

Let's examine the top 25 fastest-growing yields among these dividend aristocrats. For context, I've also included their trailing yield.

Company

5-Year Average Annual Dividend Growth Rate

Yield

CenturyLink (NYSE: CTL  ) 63.9% 8.4%
Lowe's (NYSE: LOW  ) 29.7% 2.9%
McDonald's (NYSE: MCD  ) 28.9% 2.8%
Walgreen (NYSE: WAG  ) 21.9% 2.6%
Target (NYSE: TGT  ) 20.1% 2.5%
AFLAC (NYSE: AFL  ) 19.7% 3.2%
W.W. Grainger (NYSE: GWW  ) 17.7% 1.9%
Wal-Mart (NYSE: WMT  ) 15.6% 2.9%
Automatic Data Processing (Nasdaq: ADP  ) 14.9% 3%
Clorox (NYSE: CLX  ) 14.4% 3.5%
Becton, Dickinson (NYSE: BDX  ) 14.2% 2%
PepsiCo (NYSE: PEP  ) 12.6% 3.3%
VF Corp (NYSE: VFC  ) 12.2% 2.3%
Ecolab (NYSE: ECL  ) 11.9% 1.5%
Hormel Foods (NYSE: HRL  ) 11.5% 1.8%
Procter & Gamble (NYSE: PG  ) 11.4% 3.4%
Sigma-Aldrich (Nasdaq: SIAL  ) 11.2% 1.1%
Archer-Daniels-Midland (NYSE: ADM  ) 10.9% 2.3%
Family Dollar Stores (NYSE: FDO  ) 10.9% 1.5%
Leggett & Platt (NYSE: LEG  ) 10.7% 5.6%
Chubb (NYSE: CB  ) 10.3% 2.6%
Air Products & Chemicals (NYSE: APD  ) 10.1% 2.8%
Dover (NYSE: DOV  ) 10.1% 2.3%
Abbott Laboratories (NYSE: ABT  ) 10% 3.9%
Johnson & Johnson (NYSE: JNJ  ) 9.9% 3.6%

Source: Capital IQ, a division of Standard & Poor's.

These aren't formal recommendations -- just ideas for your own further research. Still, they could give you a great start toward find companies capable of paying rising dividends for a quarter-century or more. You can find the list of highest yields here.

Get the best dividend stocks you can find. Read the Fool's special report, "13 High-Yielding Stocks to Buy Today." It's free.

Jim Royal, Ph.D., owns shares of P&G, J&J, and McDonald's. The Motley Fool owns shares of Clorox, PepsiCo, Abbott, AFLAC, Johnson & Johnson, and Wal-Mart. Motley Fool newsletter services have recommended buying shares of Becton, Clorox, Abbott, Procter & Gamble, McDonald's, ADP, Lowe's, AFLAC, J&J, Wal-Mart, and PepsiCo; creating diagonal call positions in Wal-Mart, J&J, and PepsiCo; and writing covered calls on Lowe's. 

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (2) | Recommend This Article (5)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1538927, ~/Articles/ArticleHandler.aspx, 7/30/2015 4:39:34 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Jim Royal
TMFRoyal

Jim is a special-situations investor focusing on transactional events (such as spinoffs, recapitalizations, or reorganizations, among others) that create advantageous stock mispricings.

Today's Market

updated Moments ago Sponsored by:
DOW 17,745.98 -5.41 -0.03%
S&P 500 2,108.63 0.06 0.00%
NASD 5,128.79 17.05 0.33%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

7/30/2015 4:02 PM
ABT $50.77 Down -0.29 -0.57%
Abbott Laboratorie… CAPS Rating: *****
ADM $47.82 Down -0.31 -0.64%
Archer Daniels Mid… CAPS Rating: ****
ADP $80.15 Down -2.19 -2.66%
Automatic Data Pro… CAPS Rating: ****
AFL $64.04 Down -0.50 -0.77%
Aflac CAPS Rating: *****
APD $142.34 Up +8.20 +6.11%
Air Products & Che… CAPS Rating: *****
BDX $152.00 Up +0.01 +0.01%
Becton Dickinson CAPS Rating: *****
CB $124.73 Up +0.32 +0.26%
The Chubb Corp CAPS Rating: ****

Advertisement