With thousands of dividend stocks trading in the market, investors have a number of flavors and income angles to consider.
While many dividend investors are drawn to companies with higher yields — such as this list of the best high-dividend stocks — another type of dividend stock has great potential.
More specifically, companies with lower dividend yields but rapid rates of payout growth can provide excellent long-term income growth and capital appreciation potential for investors with longer time horizons.
Today, I want to point you toward 10 dividend stocks that have grown their payouts by at least 20% annually over the past five calendar years.
These businesses generally maintain low payout ratios, generate excellent cash flow and maintain conservative balance sheets, which means this isn’t a totally backward-looking list — I expect continued double-digit rates of dividend growth out of these dividend growth stocks in the future.
In order of five-year dividend growth (all of these stocks sit above 20%), here are 10 high-quality dividend stocks that consistently push out large payout increases.