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Ten Top High Dividend Growth Stocks for Long Term Returns: LOW, MCD, RAVN, WMT, MDT, WAG, SIAL, BDX, TGT, CL

Dividend Growth Stocks are one of the best kept secret in the investing world. After all, these are high quality companies which have strong competitive advantages that allow them to generate rising earnings over time. As a result, most of these companies generate so much in excess cash flow, that they are able to pay a higher dividend over time without sacrificing long term growth.

Companies which raise dividends at a high rate could easily generate double-digit yields on cost for investors who bought early and at the right time.

I have highlighted the following dividend champions with the highest consistent dividend growth rates:

Lowe's Companies, Inc. (LOW), together with its subsidiaries, operates as a home improvement retailer in the United States and Canada. The company has boosted distributions for 49 years in a row. Ten year Annual Dividend Growth Rate: 27.60%. Yield: 2.80% (analysis)

McDonalds’ Corporation (MCD), together with its subsidiaries, operates as a worldwide foodservice retailer. The company has increased distributions for 35 consecutive years. Ten year Annual Dividend Growth Rate: 26.50% Yield: 2.80% (analysis)

Raven Industries, Inc.(RAVN), manufactures various products for industrial, agricultural, construction, and military/aerospace markets in the United States and internationally. The company has boosted distributions for 25 years in a row. Ten year Annual Dividend Growth Rate: 18.20%. Yield: 1.50%

Wal-Mart Stores, Inc. (WMT) operates retail stores in various formats worldwide. The company has increased distributions for 37 consecutive years. Ten year Annual Dividend Growth Rate: 17.80% Yield: 2.80% (analysis)

Medtronic, Inc. (MDT) manufactures and sells device-based medical therapies worldwide. The company has boosted distributions for 49 years in a row. The company has increased distributions for 34 consecutive years. Ten year Annual Dividend Growth Rate: 16.90%. Yield: 3% (analysis)

Walgreen Co. (WAG), together with its subsidiaries, engages in the operation of a chain of drugstores in the United States. The company has increased distributions for 36 consecutive years. Ten year Annual Dividend Growth Rate: 16.50%. Yield: 2.50% (analysis)

Sigma-Aldrich Corporation (SIAL), together with its subsidiaries, develops, manufactures, purchases, and distributes a range of chemicals, biochemicals, and equipment worldwide. The company has boosted distributions for 35 years in a row. Ten year Annual Dividend Growth Rate: 15.20%. Yield: 1.10%

Becton, Dickinson and Company (BDX) is a medical technology company which develops, manufactures, and sells medical devices, instrument systems, and reagents worldwide. The company has increased distributions for 38 consecutive years. Ten year Annual Dividend Growth Rate: 14.90%. Yield: 2.10% (analysis)

Target Corporation (TGT) operates general merchandise and food discount stores in the United States. The company has boosted distributions for 44 years in a row. Ten year Annual Dividend Growth Rate: 14.90%. Yield: 2.40% (analysis)

Colgate-Palmolive Company (CL), together with its subsidiaries, manufactures and markets consumer products worldwide. The company has increased distributions for 48 consecutive years. Ten year Annual Dividend Growth Rate: 12.40%. Yield: 2.70% (analysis)

Dividend investing is not an automatic process. Investors should analyze the stocks in detail in order to decide whether they stand a chance of increasing distributions in the double digits over the next decade. Investors should analyze not only quantitative factors such as earnings, dividend sustainability and ROE but also qualitative factors such as business model, competitive advantages, etc.

Full Disclosure: Long MCD, WMT, MDT, WAG, CL

About the author:

Dividend Growth Investor
http://www.dividendgrowthinvestor.com

Rating: 2.9/5 (7 votes)

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