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 10% or more over the past year.

Company

1-Year Dividend Growth Rate

IBM (IBM 0.61%)

12.9%

CARBO Ceramics (CRR)

12.1%

Schlumberger (SLB 0.57%)

11.9%

Omega Healthcare Investors (OHI 1.50%)

10.3%

Globe Specialty Metals (GSM 1.43%)

10%

Source: S&P Capital IQ

IBM is a diversified global information technology company that offers an expansive suite of software solutions along with system integration, consulting, and financing services that together help to build a "smarter planet." IBM currently has a four-star ranking on CAPS and offers investors a 2.1% yield.

CARBO Ceramics manufactures resin-coated ceramic and sand proppants primarily used in the hydraulic fracturing of natural gas and oil wells. It also provides fracture simulation software and fracture design, engineering, and consulting services to oil and natural gas companies. CARBO Ceramics sports a four-star rating in CAPS and is yielding 1.4%.

Schlumberger is a leading oilfield services company supplying technology, project management, and information solutions that optimize performance in the oil and gas industry. CAPS participants have awarded it with a top five-star rating, and the company is paying out a 1.5% dividend.

Omega Healthcare Investors is a real estate investment trust that invests in income-producing health-care facilities such as long-term-care nursing homes, assisted-living facilities, and rehabilitation hospitals. Fools have given Omega Healthcare Investors a five-star rating in CAPS, and its stock is yielding a healthy 6.6%.

Globe Specialty Metals produces silicon metal that is used as a raw material for silicone compounds, aluminum, and polysilicon; and silicon-based alloys used as raw materials for steel, automotive components, and ductile iron. In addition, the company processes and supplies specialty metallurgical coal to other silicon-based alloy producers. Globe Specialty Metals has a four-star CAPS rating and offers investors a growing 2.1% dividend.

The Foolish bottom line
Had you invested in these companies a year ago, you would have enjoyed total dividend increases ranging from 10% to nearly 13%. 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.