There are lots and lots of solid dividend growth companies with long histories of annually increasing dividend payments. Some companies have been paying out growing dividend rates for 50 plus years. These companies like Coca-Cola and Johnson & Johnson are staples amongst many dividend growth portfolios. But even these legends had to start at the beginning. Every streak must have a first year increase. It is hard telling which new dividend growers will end up among the legends but it is fun seeking them out.
Here are 10 companies that are within the first few years of a dividend growth streak. Will any of these become the next King of Dividend Growth? I don’t know but it’s worth looking into and possibly considering some of these companies for our dividend growth portfolios.
- General Electric (GE) – General Electric used to be among the favorite dividend growth companies. However, many investors got burned when GE Capital took on too much risk and the company was forced to cut their dividend back in 2009. However, GE has made it through the recession and has been decreasing operations risk to hopefully avoid these disasters in the future. General Electric is a staple blue chip company that has now been growing their dividend for 3 years.
- Wells Fargo (WFC) – Wells Fargo was another old dividend growth favorite before the financial collapse in 2008. Wells Fargo is a bank and was thus hit hard during the recession being forced to cut their dividend in 2009. They have since been growing their dividend rate for 3 years in a row. They are possibly one of the strongest U.S. banks worth considering owning and they have the backing of famed investor Warren Buffett.
- Apple (AAPL) - Apple is the famed maker of IPods, IPhones and IPads. The company is currently sitting on a boat load of cash and recently begun paying out some cash to shareholders through dividend payments beginning in 2012. They have since increased their rate for the first time. Could this be the start of a long dividend growth streak? Hard telling but Apple may be worth considering as it is currently trading at a P/E of around 10. If Apple can continue to innovate going forward like they have been able to in the past, they could turn out to be a great investment. If not, then this great company may take a fall. Is it worth the risk for your portfolio?
- Bristol-Myers Squibb (BMY) – Bristol Myers is a pharmaceutical company. They have a long history of dividend payments but have just begun growing that dividend over the past 4 years. BMY currently offers a dividend yield over 3%.
- Dr. Pepper Snapple Group (DPS) - Many people own the beverage giants Coca Cola and PepsiCo. Well Dr Pepper Snapple Group is another worth possibly considering. DPS begun paying a dividend in 2009 and has increased every year since. They are currently yielding over 3%.
- Home Depot (HD) - This home improvement store has been growing dividends for 4 years. As the economy improves, home improvement stores should do well with many taking on special projects around the house. HD has a current dividend yield just below 2% and a P/E above 25.
- Mattel (MAT) - Who doesn’t love toys? Mattel’s main competitor Hasbro has a place in my dividend growth portfolio but Mattel may be worth a check as well. They have been growing dividends annually for 4 years and currently offer a dividend yield near 3.3%.
- Tractor Supply Company (TSCO) - Tractor Supply operates retail farm and ranch stores in the United States. They have been growing their dividend for 4 years in a row now. While they do have the start of a dividend growth streak, unfortunately they are only yeilding just below 1% which will most likely scare off dividend growth investors.
- United Parcel Services (UPS) - This package delivery company has been growing dividends for 4 years. They are currently offering a yield just below 3%.
- WD-40 Company (WDFC)- WD40 Company is a consumer products company that offers multiple products under its WD40 brand. They have a nice 4 year start to a dividend growth streak. Currenly WD40 is paying a dividend yield of just below 3%.
These are 10 companies that have the beginnings of what could be great dividend growth streaks. I haven’t done thorough analysis of any company. These are just ideas of companies that may be worth a further look into. They could offer the potential for higher growth as they are just in the beginning stages of a dividend growth streak. Or they could be duds and not worth our time. If you are interested in any of the companies, be sure to do a complete dividend growth analysis before committing yourself to any investment.
If you are looking for more dividend growth stock ideas then be sure to check out my new book 35 Top Dividend Growth Stocks.
If you are looking for some other good financial reads then be sure to check out the Carnival of Personal Finance over at Funny Money where my article on creating a steady monthly dividend income was featured!