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The Fastest-Growing Dividend Aristocrats

By Jim Royal - Updated Apr 6, 2017 at 10:21PM

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Look to the strong track record of these income stocks.

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 20 fastest-growing yields among these dividend aristocrats. For context, I've also included their trailing yield.

Company

5-Year Dividend
Growth Rate

Yield

CenturyLink (NYSE: CTL)

64.6%

7.2%

Lowe's (NYSE: LOW)

30.7%

1.6%

McDonald's (NYSE: MCD)

27.5%

3.2%

Walgreen (NYSE: WAG)

21.8%

1.7%

AFLAC (NYSE: AFL)

21.0%

2.3%

Target (NYSE: TGT)

19.3%

2.0%

W.W. Grainger (NYSE: GWW)

17.7%

1.5%

VF Corp (NYSE: VFC)

17.2%

2.5%

Automatic Data Processing (NYSE: ADP)

16.3%

2.8%

Wal-Mart (NYSE: WMT)

15.1%

2.7%

Becton, Dickinson (NYSE: BDX)

15.0%

2.0%

Clorox (NYSE: CLX)

13.7%

3.2%

PepsiCo (NYSE: PEP)

13.4%

2.9%

Ecolab (NYSE: ECL)

12.0%

1.4%

Archer-Daniels-Midland (NYSE: ADM)

12.0%

1.8%

Sherwin-Williams (NYSE: SHW)

11.9%

1.7%

Procter & Gamble (NYSE: PG)

11.6%

3.3%

Chubb (NYSE: CB)

11.5%

2.5%

Sigma-Aldrich (Nasdaq: SIAL)

11.0%

1.1%

Leggett & Platt (NYSE: LEG)

11.0%

4.7%

Source: 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.

If you're interested in other income ideas, take a look at 13 other dividend stocks in a free report from The Motley Fool called "13 High-Yielding Stocks to Buy Today." Hundreds of thousands have requested access to this special free report, and now you can access it today at no cost. To get instant access to the names of these 13 high yielders, simply click here -- it's free.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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