Five of the Best Stock with Growing Dividends

March 26, 2019
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Dividends are useful for building an income-based portfolio. If you’re looking for stock picks that focus less on speculation and more on putting money back into your pocket or investment pool, then these are five of the most compelling stocks to consider today.

Lowe’s Companies Inc. Stock (NYSE: LOW)

Home improvement retailer Lowe’s could benefit from a growing home market with lower mortgage interest rates. On the financial front, the company has displayed continued sales growth for the last five years, with a gross profit margin of 30.05% at the end of its 2019 fiscal year. The dividend yield is 1.83%, not the highest on this list, but it’s still competitive in today’s market. Most importantly, the last two dividend increases were 17.1%, making this an interesting stock pick for investors this month.

Clorox Co. (NYSE: CLX)

Clorox enjoys strong brand recognition in the cleaning and lifestyle product markets. Sales revenue has seen mild increases for five straight years. Recently, Clorox changed its policy to provide a bigger return to shareholders. The most recent dividend increase was 14.3%, making the current yield a competitive 2.43%. Investors looking for an income-based portfolio could find this stock to be compelling.

McDonald’s Corp. (NYSE: MCD)

Fast food giant McDonald’s has had a muted year on the stock market with 4.59% stock price growth since January. However, its dividend is strong with a 2.5% yield. The most recent dividend increase was 14.9%, putting it within the top dividend increases of S&P 500 stocks. McDonald’s has a robust business model with long term viability, particularly in an economy where consumer confidence is as high as it is today.

Hormel Foods Corp. (NYSE: HRL)

Hormel stock has seen increased interest with price growth of 31.28% over the last 12 months. The dividend yield of 1.91% might not be the highest on the market, but it’s still on track with the current average of 1.90% across the S&P 500. The dividend increased 12.0% at the last payout. This food company could continue to perform well in the current U.S. economy.

Caterpillar Inc. (NYSE: CAT)

Caterpillar’s stock has only increased 3.39% in 2019, and has actually declined -10.62% when looking at the data over 12 months. However, this could make the stock more accessible to first time investors, and the dividend yield of 2.62% makes it an interesting portfolio addition. The dividend is one of the fastest growing on the market today. The most recent dividend increase was 10.3%, compared to 1.3% during the previous round.

Dividend are excellent for diversification, and the additional income is always helpful, even if you plan to use it to reinvest. Due diligence and research for every stock pick is always recommended.

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