20I love dividend growth stocks.  I love reading about dividend growth investing.

So I decided to combine the two by reaching out to some of my favorite dividend growth bloggers and asking them about their favorite dividend growth stocks.  And be sure to stick around because at the end I will discuss both my current and my all-time favorites!

Hopefully you will enjoy the answers as much as I did!

What is Your Favorite Dividend Growth Stock (currently or all-time) and why?

  • The Conservative Income Investor – “I think there are five realistic candidates you can choose from–Coca-Cola, Johnson & Johnson, Procter & Gamble, Nestle, or Colgate-Palmolive.  From there, it’s more a debate about style than substance.  My guess is that everyone reading this will be six feet under while these companies are still pumping out profits on six different continents.  If I could only own one of them for the rest of my life, I’d choose Coca-Cola. The diversification of 500 brands is huge, the distribution network that is unparalleled, and a brand name that actually means something significant is the kind of asset you want to spend your life acquiring.  They spend a couple cents coloring water, and are able to sell it for a dollar.  That’s a heck of a business model.  It’s probably the safest way to get 8-11% annual returns over the coming fifteen to twenty years.”
  • Dividend Growth Investor – “The dividend stock I like best is Philip Morris International (PM), which sells tobacco products outside of the US.  I like several things about the company, such as its current valuation, strong cash flow and the prospects for future growth,  all of which could result in massive compounding of wealth. The stock is cheap at 15 times earnings and yields 4.70%.  The company expects to grow earnings and dividends in the high single digits or low double digits in the foreseeable future, fueled by acquisitions and organic growth.  Phillip Morris International has a high exposure to emerging markets, where number of smokers and their income is increasing. The company also sells popular brands of cigarettes, which have a loyal customer base that buy even if prices increase. Plus, PM generates a lot of cash flow that has allowed it to repurchase massive amounts of stock and double dividends per share since 2008. I actually reviewed the stock in early 2014: http://www.dividendgrowthinvestor.com/2014/01/the-security-i-like-best-philip-morris.html
  • Income Surfer – “My favorite dividend growth stock (historically) that I own is Coca-Cola (KO).  In the years I have owned it, the dividend has consistently risen and I have little worry about the business.  The dividend growth stock I am currently the most optimistic about is China Mobile (CHL).  I recently began accumulating China Mobile, and I believe it to be substantially undervalued.  A look at its history will show you a stock that has all the characteristics of a great dividend growth stock.”
  • Buy Smart Never Sell – “The trouble with picking a “favorite” dividend growth stock is that I don’t want to give the impression that any 1 stock should be purchased no matter what the current price is.  None the less, in terms of performance and growth, I’ve been most happy with 3M Company (MMM).  They increased their quarterly dividend by 35% this year which was awesome.  Currently it’s at PE Ratio below 20, yield over 2.5%, and has increased dividends for over 50 years and has a payout ratio percentage in the 40′s which gives it plenty of room for future growth.
  • Dividend Vet – “I would say Johnson & Johnson (JNJ).  This is my favorite of all time because it is a truly bulletproof stock.  It is a true core stock to build your portfolio around.  It is vastly diversified within the healthcare industry.  It has historically steady dividend increases.  The stock is fairly valued below a P/E of 20.  It has a solid dividend yield at 2.85% and huge potential especially for the long term investor.”
  • My FI Journey – “I’ve got a few favorites, but one that that is quite memorable for me is Lowes.  I bought LOW the middle of the debt ceiling debate back in 2011 when the stock market was in free fall.  Since then, the stock has treated me very well, providing substantial capital gains and dividend increases.  At the same time I bought LOW, I sold a put against it which netted even more cash for me.”
  • HelloSuckers.net – “It is not an easy question as there are plenty of great dividend growth stocks and it is impossible to list just one.  I have two great stocks which are my favorite and the reason is simple – they make me money.  A lot of money.  The first stock, and probably an all time favorite stock of mine is Johnson & Johnson (JNJ).  It was my first purchase ever and since then the stock doubled my money (and I only have owned it for circa 3 years).  I like it for a few reasons: its price appreciation; the company is so big, that any recalls or problems, it went through, were insignificant for the company and investors failed to see it, so for dividend investors, this was a great buying opportunity – so it is safe to invest.  And last, but not least, I love its dividend yield and growth, which makes your yield growing every year without doing anything.  The second stock I love is Realty Income (O).  Although the growth is not as impressive as JNJ, its monthly dividend payout of great yield can help you with growing your portfolio faster as you reinvest dividends.  After a few years of investing into this stock I managed to be receiving 30 dollars every month in dividends just from this stock.  Isn’t that great?  And wait when it turns out to be 3,000 dollars every month!”
  • Retire Before Dad – “My all-time favorite dividend growth stock is Chevron (CVX).  In 1995 my uncle gifted me one share for my birthday and explained that if I invested money consistently over a long period of time and reinvested the dividends, my shares would be worth a lot down the road.  Every dollar I have ever invested in Chevron has increased my wealth, and I’ve witnessed 18 dividend increases over the years.  Receiving that one share was my first experience investing and it opened up a whole new world for me, and even influence my college major and career path.  Today I’m putting new money toward other stocks to diversify my portfolio, but I will likely continue to reinvest my CVX dividends until I retire.  I wrote an entire post on this stock called “CVX and How I Got Started Dividend Investing“.
  • Financial Freedom – “I have only been investing for about 8 months, so I would say my favorite dividend growth stock is Kinder Morgan (KMI).  It has great growth potential and its dividend yield and increases are great.”
  • Simply Investing – “My favorite all time and current dividend growth stock is TransCanada Corporation (TRP) trading on the Toronto Stock Exchange (TSE).  In 2000 I bought 185 shares of TRP at $13.40 each for a total investment of $2,479. Since then I have received a total of $3,126.46 in dividends alone from TRP!  In 2000 the annual dividend for TRP was $0.80, the dividend has increased every year since then and today the dividend is $1.92.  My yield on cost is 14.3%.  If I was to sell all my holdings in TRP today the return would be over 400%.”
  • Brick by Brick Investing – “Believe it or not but I’m really liking Cisco Systems (CSCO), they have tripled their dividend since 2011 and I believe they will be a growing company in the future.”
  • The Dividend Guy Blog – “On the US market, I’d go with Coca-Cola (KO). It’s the perfect dividend growth machine. On the Canadian Market, I’d go with Telus due to their aggressive dividend increase.”
  • Compounding Income – “My favorite dividend growth stocks tend to be from the consumer staples sector.  Think soft drinks (KO, PEP), food (GIS, KRFT), and cigarettes (MO, PM).  These types of businesses are very easy to understand, sell products people will always consume, have wide moats, and have been rewarding loyal shareholders with rising dividends for decades.  I try to imagine what the world might look like 20 years from now and try to determine which products might still be popular.  Every time I go through this mental exercise I come to the same conclusion: people will still be drinking Coke, people will still be eating Cheerios, and people will still be (gasp!) smoking Marlboros.  Picking a single favorite dividend growth stock is tough because there are literally hundreds to choose from.  If I had to pick only one, I’d go with Philip Morris (PM).  PM offers a nice combination of yield (currently 4.7%) and dividend growth (5 year average of 10.4%).  A dividend growth investors dream!  The nice part about Philip Morris is that the company sells an iconic brand (Marlboro) worldwide except in the United States & China.  Because of that fact PM can take advantage of world’s growing population, the world’s rising disposable income, and avoid the heavily regulated tobacco environment in the United States.  As with any individual stock there are risks.  The biggest being exchange rates, foreign government regulation, and declining smoking rates in developed nations.  While there are risks, I believe Philip Morris is poised to do well over the long run.  So much so that I made it my largest holding.  However I would always recommend staying diversified so as to minimize risk and not rely on the fortunes of one company.”
  • The Loonie Bin – “Enbridge (ENB) on the TSX. Solid dividend growth and it doubled my investment after 4 years. You can’t ask for anything more from a dividend growth stock.”
  • All About Interest – “My favorite dividend growth stock is Coca-Cola (KO).  KO has been rewarding shareholders with increasing dividend payments for over 50 consecutive years!  There’s not many companies that can say this.  I can also relate to their products.  I love an ice-cold Coke on a hot summer day.  I’m also a fan of Powerade, especially the Mountain Blast flavor.  Coke also owns many other well-known brands like Minute Maid, Dasani, and Monster to name a few.  Coke is one of those companies that you can count on to produce higher earnings and consistent dividend raises each year.”
  • A Wealth of Common Sense – “I have always been impressed with Altria Group (MO).  It’s been a compounding machine.  From September of 1989 to the end of February of 2014, the total return on the stock was 16.1% versus 9.4% for the S&P 500.  Investing $10K in MO turned into $380K while $10K in the S&P 500 would have made you about $90K.  I think the best future dividend payers could be Apple and Google.  Apple already sports a 2.3% yield and I could see that increasing for a long time with their cash hoard.  Google isn’t paying anything yet but they also have substantial cash reserves that could translate into a decent payout some day.”
  • Roadmap2Retire – “My favorite stock is Johnson & Johnson (JNJ) – because it is a blue chip stock with a proven record for dividend growth (51 years consecutively) and the fact that it operates in two sectors – consumer goods and healthcare.”
  • Financially Integrated – “Coca Cola (KO): Talk about a proven performer. Coca Cola has made its shareholders wealthy over extended period of period, and I don’t believe its done yet. This is a company with strong barriers to entry and a great business model that is simple and transparent to understand.”
  • Write Your Own Reality – “My favorite DG stock is Aflac (AFL), as it was one of the first true dividend growth stocks I bought, and really epitomizes what a dividend growth company looks like with multiple decades of dividend growth.”
  • Dividend Growth Stock Investing – “My all time favorite dividend growth stock is McDonald’s (MCD).  I love McDonald’s because it was the first dividend growth stock I ever purchased.  The company has a 38 year dividend growth streak.  Looking over the financials, McDonald’s is able to consistently grow their earnings which means the company is consistently growing in value for investors.  My current favorite is Deere & Company (DE).  Currently Deere trades with a P/E under 10 offering great value for investors buying at today’s prices.  The dividend yield may start out low but the company has been growing the dividend rate strong for the past 10 years.  I grew up on a farm and love having this current opportunity of picking up shares of Deere stock at a great price.”

There were some great stocks in this selection of favorites.  As you can see, there is quite a variety of companies you can invest in as a dividend growth investor.  Thanks to all of the investors that gave their answers to this favorite stock question!

Now it’s your turn!  What is your favorite dividend growth stock and why?  Share your responses in the comments!

If your interested in dividend growth investing, be sure that you have signed up for my free monthly dividend growth investing newsletter!

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42 Responses to 20 Favorite Dividend Growth Stocks from 20 Dividend Growth Bloggers

  1. Thank you so much for compiling this very useful article, and for including me!

    Best Regards,

    Dividend Growth Investor

    • Dan Mac says:

      Thanks for taking part DGI! I think it’s always interesting to see not only other investors favorite stocks but also to learn from their reasoning.

      I really enjoyed reading everyone’s favorites!

  2. Thanks for compiling this list and including me. Looks like KO is a clear winner. Ive had my eye on it for a while and now that its close to a 52-week low, I should initiate a position in it.

    • Dan Mac says:

      Thanks Roadmap2Retire. KO is definitely a fan favorite! KO was one of my first dividend growth purchases and one of my top favorites as well. I don’t think you can go wrong picking up some shares of this great company.

  3. Joe S. says:

    These are all great picks and some I have owned in the past, but nowadays I am looking for dividend growth companies with some serious moat and growth. My all-time favorite is MasterCard(MA)…pretty much picked up some shares maybe a year after the IPO. Strictly speaking I own some serious Dividend growth stocks that have not been mentioned from these great bloggers and I think I should share them now: PEP, NKE, GWW, DIS, TROW, UNP, ACN, PSA, SBUX, COST…These are my core group and I am considering adding this year HSY and WAB. These companies are committed to dividend growth and revenue growth and are mostly market leaders.

    Good stuff,

    Joe S.

    • Dan Mac says:

      Thanks for the comment Joe. Definitely some great dividend growth stocks in your list. There are tons of great stocks out there but I asked each contributor for just their #1 ultimate favorite. This can be a tough decision.

      Mastercard is an interesting favorite. I’ve considered Visa before but haven’t pulled the trigger. I’ll have to give Mastercard a review soon.

  4. Some pretty awesome DG companies in this list spread across multiple industries. Thanks for putting this together Dan.

    • Dan Mac says:

      Thanks! I was really pleased that there was quite a variety of favorites. I was originally afraid that almost all would have the same answers but just goes to show there are plenty of great dividend growth companies out there. Everyone has their favorites for a different reason which is great!

  5. Awesome post!
    Thanks for including me Dan!
    It’s surprising to see how many of these same stocks I already own, I guess great minds think alike.

    cheers,
    Kanwal

    • Dan Mac says:

      Thanks Kanwal. I think there are quite a few of the best dividend growth companies that make up the foundation of most portfolios. But there is a lot of variety from several different industries which is fantastic.

  6. Compiling this article was a great idea. I hope it will become a series, because I love to learn from other passionate investors. Have a great day Dan, and thank you for inviting me to contribute
    -Bryan

    • Dan Mac says:

      Thanks Bryan, I will have another article coming soon with the #1 advice for new beginners from most of these same dividend bloggers. I think it’s always a good thing to learn from other investors and apply what you learn to your own investing. This article hopefully will give some new investors some ideas of what to look for.

  7. Ben says:

    Good one. Looking forward to the next one in the series.

  8. FFdividend says:

    great post. I also added a few bloggers that I was not aware of that I will start to follow. Thanks for including me on this series.

    • Dan Mac says:

      Great FFDividend. Glad you found some new great dividend growth bloggers to follow!

  9. ILG says:

    I’m going to have to say MSFT. Low debt + fantastic cash flow + low payout.

    Nice to see that I own many of the same positions as these guys!

    Thanks for collecting this.

    • Dan Mac says:

      Hi ILG, I’m a pretty big fan of Microsoft as well. I picked up some shares a year or two ago at a great price and have been a happy owner ever since. I think they will continue to be a cash generating machine for many years to come.

      Glad you enjoyed the article!

  10. DividendVet says:

    It is an honor being part of such a great investing community! Great job guys and thank you for putting this whole thing together Dan Mac.

    • Dan Mac says:

      Thanks DividendVet. Thanks for contributing your answer and glad you find the article interesting!

  11. LN says:

    I like this article a lot! It reminds me of another on my blogroll where one of the dividend blogs compiled a count of the most frequent holdings across 20 blogs (including many of these blogs, I believe). I can’t find it again for the life of me, though! Does anyone know which blog ran that article?

  12. Marvin says:

    This was such an awesome project/post. Its great seeing a lot of other people’s favorite dividend stocks, I have actually taken down a couple stocks that I need to analyze and put on my watchlist. Great post, perhaps you should make this a quarterly thing!

    • Dan Mac says:

      Thanks Marvin, I definitely enjoyed finding out all the different answers to favorite stocks and certainly got some ideas that I want to look further into as well. I’d love to make it a quarterly thing and will try to come up with some ideas to make it happen! Thanks for participating!

  13. This post was a great idea. Thanks for including me on the list. There’s a lot of great dividend growth companies mentioned here. It’s also nice to see that I already have many of these in my portfolio.

    • Dan Mac says:

      Thanks Brent, I was also happy to see that I had already looked into and owned quite a few of the companies mentioned. Just shows we are all on the right path. There are many great dividend growth companies to consider for investment. These are just a few of the favorites!

  14. Thanks so much for sharing this! I’ve been thinking about starting a dividend growth stock portfolio for a while and this has definitely inspired me. It’s interesting to see so many of the same choices.

    • Dan Mac says:

      Thanks Addison. I believe dividend growth is one of the best investing strategies to follow. If your considering starting a new portfolio, many of the stocks mentioned here can serve as a solid foundation. The companies mentioned in this article are some of the world’s best, industry leading, profit growing companies.

  15. CI says:

    Dan,

    Cool post! This was quite fun, thanks for including me.

    I’m not surprised to see most of those names, but there are a few on there I need to investigate. I bookmarked this post and will be checking out some of the other blogs very soon. Thanks again!

    Take care

    • Dan Mac says:

      Thanks CI! It’s definitely not surprising to see many of the companies that made the list of favorites as they are some of the best companies in the world. Glad you enjoyed the article.

  16. Great list of companies from a great group of people!

    • Dan Mac says:

      Thanks Dividend Gamer. There are many great dividend growth companies for investing. These are just some favorites and possibly some top of the class!

  17. Mr. SFZ says:

    Great list Dan Mac. Enjoyed reading it and discovering some new blogs to read. Mine would have to be Coca-Cola(I know, not very original ;) ). It’s diverse portfolio of brands, large moat, and consistent 8-9% dividend raises make it hard to beat. Realty Income probably comes in 2nd for me and right now is my largest holding. Gotta love those monthly dividends!
    Best wishes,
    SFZ

    • Dan Mac says:

      Thanks SFZ! Coca-Cola is one of my favorites as well. With an over 5 decade long dividend growth streak, it is hard not to love this company.

  18. Dan,
    KO was a close second for me. I’ve owned it about 17 years, and my YOC keeps rising. I like it a lot, but CVX has performed much better over the years. Very cool to see this list and looking forward to the next! Thanks for reaching out.
    -RBD

    • Dan Mac says:

      Hi RBD-
      Definitely KO has been a good one and is the favorite of many. Chevron is a great one as well and I’m happy to say I own some shares of that company as well. Lots of great dividend growth stocks out there!

  19. Great list Dan! I’d have to include KO and JNJ in my list for U.S. stocks.

    For Canada, hard to go wrong with TD Bank.

    Mark

    • Dan Mac says:

      Hi Mark-

      KO and JNJ are two wonderful dividend growth stocks. TD Bank sounds interesting and I’ll have to look into it. Currently I don’t own any Canadian companies but maybe I should change that!

  20. PIM says:

    Hi Dan,

    Great list! My favorite dividend stocks are KO, MCD and MO, perhaps not surprising :) However, I would like to add some other high div monthly payees in mix like O & PSEC.

    Best wishes,
    Passive Income Mavericks

    • Dan Mac says:

      Thanks Passive Income Mavericks! Those are some great favorites that I own as well! I haven’t really looked into O or PSEC. Monthly paying dividend stocks would be nice to have in my portfolio. I’ll have to check those out.

  21. Brian says:

    Seaspan! – SSW

    Great yield (5%), low payout ratio (25%), just raised the dividend 10%, management has promised a ‘progressive dividend policy’, and should be able to raise it by 10% annually for the next 5 years at least.

    Yield, growth, and capital appreciation. Whats not to like?

    Long Term Brian

    • Dan Mac says:

      Hi Brian-

      Thanks for the stock tip! I’ll have to checkout Seaspan. I’ve actually never heard of them! But sounds like they have a great starting yield and hopefully some good raises coming up over the next few years. I’ll check them out.

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