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.
Image by Alexsander-777 from Pixabay
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.
8. Philip Morris International Inc. (NYSE:PM)
Dividend Yield as of April 27: 3.58%
On April 23, Philip Morris International Inc. (NYSE:PM) announced it is expanding its partnership with Ducati Corse for the 2026 season and beyond. This next phase adds something new. The ZYN brand of nicotine pouches, described as the number one nicotine pouch brand globally, will appear on Ducati Corse MotoGP liveries at select races.
The company drew a link between Ducati’s focus on performance and ZYN’s positioning. It said the product reflects its push for innovation, with an emphasis on quality and design. The partnership is also meant to help ZYN reach adult consumers in a setting they already connect with, in a way that feels natural to the sport.
The relationship between Philip Morris and Ducati Corse goes back to 2003, when Ducati entered MotoGP. That was the starting point, and since then, the collaboration has continued, changing as both sides have evolved over time. Now, Philip Morris is working toward its goal of moving beyond cigarettes, while Ducati remains focused on high-performance racing. This next stage of the partnership reflects that shift, with a focus on innovation and shared progress.
Philip Morris International Inc. (NYSE:PM) operates as a global tobacco company. Its products include cigarettes and smoke-free alternatives. Its smoke-free business also covers wellness and healthcare products, along with consumer accessories such as lighters and matches.
7. NIKE, Inc. (NYSE:NKE)
Dividend Yield as of April 27: 3.67%
On April 23, CNBC reported that NIKE, Inc. (NYSE:NKE) announced a new round of layoffs, affecting about 1,400 employees across the organization. Most of the cuts are concentrated in its technology department. In a note from COO Venkatesh Alagirisamy, the company said the layoffs are part of its broader “Win Now” turnaround strategy. The plan includes reshaping the technology team, modernizing Air manufacturing, shifting some Converse footwear operations, and integrating materials supply chain work into its footwear and apparel supply chain teams.
A Nike spokesperson said the layoffs are meant to better position the company for the current pace of sports and to support faster growth. The reductions span North America, Asia, and Europe, and account for less than 2% of Nike’s total global workforce.CEO Elliott Hill has been working to turn the business around after a period of weaker sales. There have been some early signs of progress, though not without setbacks.
Earlier this year, Nike announced 775 job cuts in January, mainly at its US-based distribution centers. The company linked those reductions to increased use of automation. At the time, it said the cuts were part of its effort to return to “long-term, profitable growth.”
NIKE, Inc. (NYSE:NKE) designs, markets, and distributes athletic footwear, apparel, equipment, and accessories for sports and fitness. Its operations are organized across North America, Europe, the Middle East & Africa (EMEA), Greater China, and Asia Pacific & Latin America (APLA).
6. Black Hills Corporation (NYSE:BKH)
Dividend Yield as of April 27: 3.79%
On April 15, BMO Capital analyst Edward DeArias raised the firm’s price recommendation on Black Hills Corporation (NYSE:BKH) to $91 from $84. It reiterated an Outperform rating on the shares. The move followed a jump in the stock after reports that Microsoft (MSFT) is buying land to build a data center that would be served by the company. The analyst said that, over time, this opportunity, along with continued hyperscaler interest in the state, could extend Black Hills’ growth trajectory.
The note also pointed out that the stock’s current discount to peers reflects concerns around management’s execution on its plan, despite a strong balance sheet and recovery mechanisms already in place. Potential new large load announcements and updates to the capital plan could also play a role going forward.
Black Hills Corporation (NYSE:BKH) operates as a utility company focused on serving customers across multiple regions. It provides natural gas and electric services to about 1.35 million customers in Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota, and Wyoming. Its business is organized into Electric Utilities and Gas Utilities segments.
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