10 Best Dividend Growth Stocks Of 2024 (2024)

MSCI creates financial indexes that are used by companies in many industries, including a wide array of exchange-traded funds.

MSCI has the highest dividend growth on our list over the last three years. Its 13.1% expected annual earnings per share growth rate over the next five years allows the company to continue increasing its dividend into the future if it wishes. Dividend payouts have been increasing for nine years in a row.

The company has been stable, growing EPS by an average of 20.5% per year over the last five years. Analysts expect a 10.1% increase in the current year and 14.2% next year.

MSCI also buys back shares, which helps bolster shareholder value over time. The shareholder yield, which is dividends plus buybacks, is 2.3%.

Over the past 10 years, MSCI has beaten the by a yearly average total return of 28.9% versus 12.6%.

Hershey is a chocolate and candy maker with many brands under its umbrella, including Kit Kat, Kisses and Reese’s.

Dividends have been increasing steadily for more than a decade, and dividend growth is likely to continue as analysts forecast 5.8% annual growth over the next five years, led by a predicted 6.5% gain next year.

In addition, the shareholder yield is 3.4% as the company is buying back shares as well as paying a dividend.

Hershey’s share price has downtrended since May. That may offer an opportunity to buy this growing company. That recent drop is part of the reason Hershey’s total return has been only roughly 55% as much as the S&P 500 Index over the last decade.

Target is one of the U.S.’s largest retail chains, offering apparel, household goods, food, toys and more.

TGT’s 2.6% dividend yield is the second highest on our list. Equally impressive, TGT has increased its dividends for more than 50 years in a row.

Analysts are predicting strong yearly EPS over the next five years, including a 4.6% increase this year and another 12.2% next year. If that occurs, continuing to increase the dividend shouldn’t be an issue for Target. Its shareholder yield is 2.9%, which includes buybacks.

EPS growth averaged a strong 7.4% annually over the last five years. Target’s stock price downtrended from mid-2021 through late 2023. But it has uptrend since then, presenting a buying opportunity that appears to have momentum. Its total return over the past 10 years has topped the S&P 500 Index’s, 266% versus 230%.

Domino’s Pizza operates take-out restaurants and franchises in the U.S. and abroad. It has been raising its dividend for more than 10 straight years.

EPS growth averaged 11.9% per year over the last five years, similar to the 12.0% pace that analysts expect for the next five years. The current year EPS increase is expected to rise 7.6%.

The stock’s performance has been impressive over the last decade. Its total return was roughly triple the S&P 500 Index’s.

As a bonus, the shareholder yield is 3.1% due to the company buying back shares in addition to paying dividends.

Marsh & McLennan provides insurance and consulting services in the areas of risk, strategy and people.

MMC has increased its dividend for more than 10 consecutive years. Dividends are poised to continue rising as analysts expect EPS to also grow, including a 7.9% increase in the current year and 9.5% next year.

Over the last five years, EPS increased an average of 18.4% annually. That helped MMC’s average annual total return outperform the S&P 500 by nearly five percentage points per year, roughly 20% versus 15%.

Buybacks combined with the dividend yield provide a shareholder yield of 2.3%.

Automatic Data Processing provides payroll services, human resources outsourcing, employer insurance and retirement services, and human capital solutions.

ADP is a steady dividend stock, with dividends increasing yearly for 49 years in a row. EPS has increased an average of 18.7% annually over the past five years. Analysts project 10.9% growth this year. That should help ADP reach the half-century mark for dividend increases late in 2024.

The stock has performed well over the last decade, more than doubling the S&P 500 Index’s total return. The shareholder yield is 3.4%, including buybacks.

UnitedHealth Group is a private health insurer that provides services both within the U.S. and abroad. It has boosted its dividend every year for well over a decade.

The company has notched steady growth. Over the last five years, EPS increased 14.5% per year. Analysts expect 10.5% growth this year and 13.4% annually on average over the next five.

UNH racked up a total return of 636% over the past decade versus 230% for the S&P 500 Index. It has a shareholder yield of 2.9% due to share buybacks plus dividends.

ITT is a conglomerate that makes a wide array of products for diverse industries. Its output ranges from brake pads for cars and commercial vehicles to aerospace controls, pumps and coil springs.

ITT has increased its dividend for more than 10 years running. Over the past three years alone, ITT dividends have climbed 13.2% annually on average. Analysts expect EPS to continue growing, including a 10.6% increase this current year.

Over the last five years, EPS increased an average of 5.8% per year. The stock has slightly outpaced the performance of the S&P 500 over the last decade.

Buybacks combined with the dividend yield provide a shareholder yield of 1.6%.

Elevance Health is a health insurance provider in the United States. It has boosted its dividend more than 10 straight years.

The company has been steadily growing, increasing earnings by an average of 12.2% per year over the last half decade. Analysts expect 12.0% growth in the current year. That should be enough to keep ELV dividends increasing.

In addition to the dividend, the company has also bought back shares. The two combined create a shareholder yield of 2.9%.

Over the past decade, ELV’s total return has lapped the S&P 500 Index’s, 523% versus 230%, respectively.

Booz Allen Hamilton is a consulting firm that provides engineering services, cybersecurity, analytics and digital solutions.

BAH has been raising its dividend yearly for more than a decade. It continued that streak despite growing EPS by a modest average of 1.7% over the last five years. But analysts expect that to change. They forecast an 18.4% EPS jump this year and a 12.6% annual rise over the next five years.

The stock’s average annual total return over the past 10 years was 23.6% versus 12.7% for the benchmark S&P 500. In addition to paying dividends, the company is buying back shares aggressively, generating a 2.9% shareholder yield.