Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



5 Stocks Growing Their Dividends by 15% Per Year

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 investors would be wise to focus not just on a stock's current yield, but also on the long-term growth potential of its dividends. That's because strong businesses that consistently raise their dividend payouts reward shareholders with a steadily rising income stream that essentially equates to a raise every year. And, well, who doesn't like a raise?

But there are other reasons to value dividend growth so highly, and they're well supported by research. For instance, a study by C. Thomas Howard  published in Advisor Perspectives found that for every percentage point a stock's yield rises, its annual return increases by 0.22 percentage points if it's a large cap, 0.25 if it's a mid cap, and 0.46 if it's a small cap. Even better, Howard found that dividend-growing stocks outperformed dividend cutters by 10 percentage points per year from 1973 to 2010 and beat both flat- and no-dividend stocks. And the icing on the cake is that Howard showed that this outperformance came with a third less volatility. Higher returns, less volatility-induced stress, and a steadily growing income stream -- what's not to love?

With that in mind, here are five stocks that have grown their dividends by 15% or more over the last year:


1-Year Dividend Growth Rate

Halliburton (NYSE: HAL  )




Magellan Midstream Partners (NYSE: MMP  )


Service Corp. (NYSE: SCI  )


Nike (NYSE: NKE  )


Source: S&P Capital IQ.

Halliburton is one of the world's largest providers of products and services to the energy industry, with more than 75,000 employees in approximately 80 countries. The company serves the upstream oil and gas industry throughout the lifecycle of the reservoir -- from locating hydrocarbons and managing geological data, to drilling and formation evaluation, well construction and completion, and optimizing production through the life of the field. CAPS participants have awarded Halliburton with a top five-star rating, and the company is paying out a growing 1% dividend.

VF is an apparel and footwear powerhouse, with a diverse portfolio of brands including The North Face, Nautica, Timberland, JanSport, Wrangler, and Lee, among others. VF sports a five-star rating in CAPS and is yielding 1.8%.

Magellan Midstream Partners owns the longest refined petroleum products pipeline system in the United States. It can tap into more than 40% of the nation's refining capacity and store 80 million barrels of petroleum products such as gasoline, diesel fuel, and crude oil. Magellan's primarily fee-based business generates strong cash flows that the MLP passes on to its investors in the form of a 3.9% cash distribution, helping Magellan earn a four-star rating in CAPS.

Service Corp. is North America's leading provider of death-care products and services. Through its network of more than 1,800 funeral homes and cemeteries, Service Corp. provides funeral, cremation, and cemetery services to hundreds of thousands of families every year. Service Corp. has a three-star ranking on CAPS and offers investors a 1.5% yield.

Nike is the global leader in athletic footwear, apparel, equipment, and accessories. Its tremendously valuable collection of brands -- from its iconic namesake Nike brand, to Jordan, Converse, and Hurley -- has helped propel the company to market-crushing long-term gains. This Fool favorite has a top five-star CAPS rating, and offers investors a growing 1.2% dividend.

The Foolish bottom line
Had you invested in these companies a year ago, you would have enjoyed total dividend increases ranging from 15% to 19%. That level of growth would provide a substantial boost to just about any investor's dividend income. But more important to investors today is to identify the companies that will grow their dividends substantially in the years ahead. If you're interested in hearing about some excellent companies that are likely to boost their dividends from this point forward, I'd like to offer you a brand-new free report from The Motley Fool's expert analysts called "Secure Your Future With 9 Rock-Solid Dividend Stocks." Today I invite you to download it at no cost to you. To discover the identities of these companies before the rest of the market catches on, you can access this valuable free report by simply clicking here now.

Read/Post Comments (0) | 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.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

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: 2637903, ~/Articles/ArticleHandler.aspx, 9/28/2016 10:32:45 AM

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...

Today's Market

updated Moments ago Sponsored by:
DOW 18,248.81 20.51 0.11%
S&P 500 2,159.55 -0.38 -0.02%
NASD 5,305.91 0.20 0.00%

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

9/28/2016 10:16 AM
HAL $40.83 Down -0.13 -0.31%
Halliburton CAPS Rating: ****
MMP $69.76 Down -0.16 -0.22%
Magellan Midstream… CAPS Rating: ****
NKE $54.50 Down -0.84 -1.52%
Nike CAPS Rating: *****
SCI $26.75 Up +0.02 +0.07%
Service Corporatio… CAPS Rating: *****
VFC $56.18 Down -0.40 -0.71%
VF CAPS Rating: *****