In this article, we will take a look at the 10 Best High-Yield Dividend Growth Stocks to Buy Right Now.

Dividend growth strategies remain a common choice for investors. The focus is to look for companies that raise their dividends over time. That creates a mix of steady income and potential capital gains. Companies that follow this path usually show consistent earnings and solid cash flow. That stability supports regular payouts. Over time, rising dividends have often kept up with, and sometimes exceeded, inflation. That helps maintain purchasing power.

S&P Global pointed out that these strategies also offer equity exposure, with a history of strong long-term returns. Reinvesting dividends can make a noticeable difference. Compounding builds gradually, but it adds up. These portfolios also tend to lean toward higher-quality businesses. That has often meant lower volatility and smaller drawdowns compared to the broader market.

There is a common belief that high-yield stocks do not deliver dividend growth. The S&P High Yield Dividend Aristocrats, launched in November 2005, offers a different view. It tracks companies in the S&P Composite 1500 that have raised their dividends every year for at least 20 years.

Maintaining that level of consistency has not meant giving up yield. From Dec. 31, 1999, to Sept. 30, 2024, the index consistently posted higher trailing yields than its benchmark. The approach to selecting and weighting stocks plays a role here. Over that period, the index averaged a 3.2% yield, with a range between 2.5% and 5.7%. The S&P Composite 1500, in comparison, averaged 1.7%, with a range of 1.0% to 3.0%. On average, the S&P HYDA yielded about 1.5% more than its benchmark.

Given this, we will take a look at some of the best dividend stocks.

Our Methodology:

For this article, we screened for dividend companies with strong dividend growth records and identified stocks with dividend yields above 3% as of April 27. From there, we picked companies that have recently reported noteworthy developments likely to impact investor sentiment. These companies are also popular among elite funds and analysts.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).

10. Medtronic plc (NYSE:MDT)

Dividend Yield as of April 27: 3.41%

On April 22, UBS lowered the firm’s price recommendation on Medtronic plc (NYSE:MDT) to $90 from $104. It reiterated a Neutral rating on the shares. The firm updated its model to reflect the diabetes separation.

On April 24, Jefferies analyst Matthew Taylor lowered the firm’s price objective on MDT to $95 from $108. It kept a Hold rating on the shares. The firm updated its FY26 EPS outlook to reflect MiniMed (MMED) IPO timing and one-time expenses for MiniMed Flex. Jefferies added that Medtronic’s announced one-time $157M charge in Q4 related to the present value of future payments owed to Blackstone for the MiniMed Flex launch added to the EPS guide revision.

On April 20, the company announced it had completed its acquisition of CathWorks, a privately held medical device company, which aims to transform how coronary artery disease (CAD) is diagnosed and treated. The acquisition follows a 2022 strategic partnership with a co-promotion agreement for the CathWorks FFRangio System, where it is commercially available in the U.S., Europe, and Japan. The acquisition is valued at $585 million with potential undisclosed earn-out payments post-acquisition.

Medtronic plc (NYSE:MDT) is a global leader in medical technology, developing, manufacturing, and marketing devices to treat over 70 chronic health conditions, including cardiac disorders, diabetes, and neurological diseases.

9. Automatic Data Processing, Inc. (NASDAQ:ADP)

Dividend Yield as of April 27: 3.46%

On April 21, Cantor Fitzgerald lowered the firm’s price recommendation on Automatic Data Processing, Inc. (NASDAQ:ADP) to $244 from $306. It reiterated an Overweight rating on the shares. Despite concerns about a broader macro slowdown, the analyst said recent bank results and company commentary point to relatively stable consumer spending. The note added that while thematic headwinds have weighed on the sector, these risks appear overstated. Q1 estimates look largely achievable, with forward guidance and developments in the Middle East expected to act as key catalysts.

On April 7, BMO Capital analyst Daniel Jester lowered the firm’s price goal on ADP to $234 from $281 and kept a Market Perform rating on the shares. The update came as part of a broader research note previewing Q1 in Human Capital Management (HCM). Shares have been soft heading into Q3 results due later this month. This reflects a mix of cyclical and structural growth concerns, which continue to pressure the outlook for estimates. Based on intra-quarter data, read-throughs from Paychex, and recent discussions with industry participants, BMO expects modest upside in ADP’s Q3 results, but not enough to ease its near-term caution, the analyst said.

Automatic Data Processing, Inc. (NASDAQ:ADP) provides cloud-based human capital management solutions. Its business is organized into Employer Services and Professional Employer Organization (PEO) segments.