Markets

Insider Trading

Hedge Funds

Retirement

Opinion

15 Best S&P 500 Stocks For Dividend Growth

In this article, we discuss 15 best S&P 500 dividend stocks for dividend growth. You can skip our detailed analysis of dividend growth stocks and their performance over the years, and go directly to read 5 Best S&P 500 Stocks For Dividend Growth

Tech stocks have been the center of attention in the market this year, while dividend stocks have fallen behind. The S&P 500 Dividend Aristocrats Index, which tracks the performance of companies that have raised their dividends for over 25 consecutive years, returned 2.93% so far this year, significantly underperforming the broader market, which delivered a  17.35% return to shareholders year-to-date.

However, companies worldwide have continued to distribute dividends to their shareholders, which indicates that they have sustainable earnings. According to a recent report by Janus Henderson, global dividends reached an all-time high in the second quarter of 2023 due to significant contributions from major banks, which were responsible for half of the overall growth. During the quarter, global dividend payments increased by 4.9% to a total of $568.1 billion. The report also mentioned that 88% of the companies worldwide increased their dividends or held them steady in Q2. Dividends distributed by U.S. companies increased by a modest 2.6% to reach $148 billion, with healthcare and real estate companies contributing to this growth.

When considering a dividend investing strategy, dividend growth stocks become top choices for investors. One reason for this inclination is that dividend growth stocks provide a consistent stream of income to shareholders. Secondly, companies with a history of increasing dividends often have strong financials and stable operations. During market downturns or economic challenges, these stocks may show more resilience, providing a degree of protection for your portfolio. Moreover, dividend growth can outpace inflation, as we have described in detail in our article, 25 Things Every Dividend Investor Should Know.

Analysts strongly recommend investing in dividend stocks to weather severe economic conditions. Erin Browne, a portfolio manager at Pimco, spoke with Barron’s about dividend growth stocks and their importance in this environment. Here are some comments from the analyst:

“Those stocks will do well—and really show their stripes and outperform—in an environment where we start to price in a slowdown and certainly price in the Fed starting to cut rates.”

She further said that dividend aristocrats and the like can provide good value for portfolios with a long-term investment horizon. For example, companies such as The Procter & Gamble Company (NYSE:PG), Colgate-Palmolive Company (NYSE:CL), and PepsiCo, Inc. (NASDAQ:PEP) have raised their dividends for decades, which highlights their sound financial health. In this article, we will discuss some of the best dividend stocks in the S&P 500 for growth.

Photo by lucas Favre on Unsplash

Our Methodology:

For this article, we looked at S&P 500 dividend stocks that have maintained consistent dividend payouts over time. From that list, we chose companies that have increased their dividends by an average of more than 10% annually over the last 5 years. We also mentioned hedge fund sentiment around each stock according to Insider Monkey’s database as of Q2 2023. The stocks are ranked in ascending order of their annual average dividend growth in the past five years.

15. Kinder Morgan Inc. (NYSE:KMI)

5-Year Average Dividend Growth: 11.50%

Number of Hedge Fund Holders: 36

Kinder Morgan Inc. (NYSE:KMI) is a Texas-based energy company that operates and owns an extensive network of pipelines and terminals that transport and store various energy products. On July 19, the company declared a quarterly dividend of $0.2825 per share, which was in line with its previous dividend. The company has raised its dividends for six consecutive years, which makes it one of the best dividend stocks on our list. The stock has a dividend yield of 6.78%, as of September 11.

In addition to KMI, other dividend stocks gaining traction among investors include The Procter & Gamble Company (NYSE:PG), Colgate-Palmolive Company (NYSE:CL), and PepsiCo, Inc. (NASDAQ:PEP).

At the end of Q2 2023, 36 hedge funds tracked by Insider Monkey reported having stakes in Kinder Morgan Inc. (NYSE:KMI), up from 35 in the previous quarter. The collective value of these stakes is nearly $891 million. With roughly 18 million shares, Orbis Investment Management was the company’s leading stakeholder in Q2.

14. AbbVie Inc. (NYSE:ABBV)

5-Year Average Dividend Growth: 12.34%

Number of Hedge Fund Holders: 74

AbbVie Inc. (NYSE:ABBV) is a global pharmaceutical company that focuses on the research, development, and commercialization of a wide range of innovative healthcare products. Not only has the company raised its dividends by 12.34% in the past five years on average, but it also maintains a 50-year streak of consistent dividend growth. It currently offers a quarterly dividend of $1.48 per share and has a dividend yield of 3.97%, as of September 11.

As of the close of Q2 2023, 74 hedge funds tracked by Insider Monkey owned investments in AbbVie Inc. (NYSE:ABBV), compared with 75 in the previous quarter. The consolidated value of these stakes is over $2.37 billion.

Carillon Tower Advisers mentioned AbbVie Inc. (NYSE:ABBV) in its Q2 2023 investor letter. Here is what the firm has to say:

“AbbVie Inc. (NYSE:ABBV) reported mixed first-quarter results, which included disappointing revenue for two important products that are expected to drive new growth for the firm. We believe the source of weakness is temporary and remain bullish on the long-term future for both products.”

13. Citizens Financial Group, Inc. (NYSE:CFG)

5-Year Average Dividend Growth: 13.55%

Number of Hedge Fund Holders: 46

Citizens Financial Group, Inc. (NYSE:CFG) is an American financial services company that provides a wide range of banking and financial products and services to individuals and businesses. The company offers a quarterly dividend of $0.42 per share and has a dividend yield of 6.08%, as recorded on September 11. It has raised its dividend by 13.55% over the past five years, which places it as one of the best dividend stocks on our list.

The number of hedge funds tracked by Insider Monkey owning stakes in Citizens Financial Group, Inc. (NYSE:CFG) grew to 46 in Q2 2023, from 42 in the previous quarter. The consolidated value of these stakes is over $491.4 million. Among these hedge funds, Millennium Management was the company’s leading stakeholder in Q2.

12. The PNC Financial Services Group, Inc. (NYSE:PNC)

5-Year Average Dividend Growth: 13.59%

Number of Hedge Fund Holders: 52

An American financial services company, The PNC Financial Services Group, Inc. (NYSE:PNC) is next on our list of the best dividend stocks with strong growth. The company’s 5-year average dividend growth stands at 13.59% and it has raised its payouts for 13 consecutive years. It offers a quarterly dividend of $1.55 per share and has a dividend yield of 5.25%, as of September 11.

As of the close of Q2 2023, 52 hedge funds in Insider Monkey’s database were bullish on The PNC Financial Services Group, Inc. (NYSE:PNC). The stakes owned by these funds have a total value of nearly $630.6 million. Balyasny Asset Management was the company’s leading stakeholder in Q2.

11. T. Rowe Price Group, Inc. (NASDAQ:TROW)

5-Year Average Dividend Growth: 13.7%

Number of Hedge Fund Holders: 24

T. Rowe Price Group, Inc. (NASDAQ:TROW) is a Maryland-based investment management company that provides a range of financial services and investment products to its consumers. On August 1, the company announced a quarterly dividend of $1.22 per share, consistent with its previous dividend. It is one of the best dividend stocks on our list with 37 years of dividend growth streak under its belt. As of September 11, the stock has a dividend yield of 4.43%.

At the end of Q2 2023, 24 hedge funds in Insider Monkey’s database owned investments in T. Rowe Price Group, Inc. (NASDAQ:TROW), up from 21 in the previous quarter. The overall value of these stakes is over $309 million.

10. Fifth Third Bancorp (NASDAQ:FITB)

5-Year Average Dividend Growth: 14.87%

Number of Hedge Fund Holders: 39

Fifth Third Bancorp (NASDAQ:FITB) is a regional bank holding company that operates as a diversified financial services organization, providing a range of banking and financial products to consumers. On September 10, the company announced a 6.1% hike in its quarterly dividend to $0.35 per share. This marked the company’s 13th consecutive year of dividend growth, which makes it one of the best dividend stocks on our list. The stock’s dividend yield on September 11 came in at 4.98%.

At the end of June 2023, 39 hedge funds in Insider Monkey’s database owned stakes in Fifth Third Bancorp (NASDAQ:FITB), down from 44 a quarter earlier. The collective value of these stakes is roughly $500 million.

9. Regions Financial Corporation (NYSE:RF)

5-Year Average Dividend Growth: 15.42%

Number of Hedge Fund Holders: 29

A regional bank company, Regions Financial Corporation (NYSE:RF) is next on our list of the best dividend stocks for growth. In the past five years, the company has raised its dividends by 15.42% on average. The company currently pays a quarterly dividend of $0.24 per share, having raised it by 20% in July this year. This marked the company’s 12th consecutive year of dividend growth. The stock has a dividend yield of 5.34%, as of September 11.

The number of hedge funds in Insider Monkey’s database owning stakes in Regions Financial Corporation (NYSE:RF) stood at 29 in Q2 2023, which remained unchanged from the previous quarter. The consolidated value of these stakes is nearly $251 million.

8. Best Buy Co., Inc. (NYSE:BBY)

5-Year Average Dividend Growth: 17.90%

Number of Hedge Fund Holders: 31

Best Buy Co., Inc. (NYSE:BBY) is a consumer electronics company, based in Minnesota. On August 30, the company declared a quarterly dividend of $0.92 per share, raising it by 5% in March this year. Through this increase, the company took its dividend growth streak to 10 years, which makes it one of the best dividend stocks on our list. The stock has a dividend yield of 5.07%, as of September 11.

According to Insider Monkey’s database of Q2 2023, 31 hedge funds owned stakes in Best Buy Co., Inc. (NYSE:BBY), with a collective value of over $356.5 million. With over 1.1 million shares, Citadel Investment Group was the company’s leading stakeholder in Q2.

7. Cintas Corporation (NASDAQ:CTAS)

5-Year Average Dividend Growth: 24.2%

Number of Hedge Fund Holders: 40

Cintas Corporation (NASDAQ:CTAS) is an American business services company that provides a wide range of products and services related to corporate uniforms, workplace safety, and facility services. In the past five years, the company has raised its dividends by 24.2% on average and maintains a 40-year streak of consistent dividend growth. The company’s current quarterly dividend stands at $1.35 per share which offers a dividend yield of 1.08%, as of September 11.

Of the 910 hedge funds tracked by Insider Monkey at the end of Q2 2023, 40 funds owned stakes in Cintas Corporation (NASDAQ:CTAS), up from 39 in the previous quarter. The overall value of these stakes is over $1.36 billion. Among these hedge funds, Impax Asset Management was the company’s largest stakeholder in Q2.

6. Zoetis Inc. (NYSE:ZTS)

5-Year Average Dividend Growth: 24.5%

Number of Hedge Fund Holders: 65

Zoetis Inc. (NYSE:ZTS) is a global animal health company that specializes in the discovery, development, manufacturing, and marketing of a wide range of veterinary medicines and vaccines. The company currently pays a quarterly dividend of $0.375 per share and has a dividend yield of 0.81%, as recorded on September 11. In the past five years, it raised its dividends at an annual average rate of 24.5%, which makes it one of the best dividend stocks on our list.

The Procter & Gamble Company (NYSE:PG), Colgate-Palmolive Company (NYSE:CL), and PepsiCo, Inc. (NASDAQ:PEP) are some other dividend stocks to consider for growth.

Zoetis Inc. (NYSE:ZTS) was a popular buy among elite funds with 65 hedge fund positions at the end of Q2 2023, up from 55 in the previous quarter, as per Insider Monkey’s database. The consolidated value of stakes owned by these hedge funds is over $1.1 billion.

Click to continue reading and see 5 Best S&P 500 Stocks For Dividend Growth

Suggested articles:

Disclosure. None. 15 Best S&P 500 Stocks For Dividend Growth is originally published on Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

The best part? You can discover everything about this company and its groundbreaking technology right now.

I’ve compiled everything you need to know about this groundbreaking company in a detailed, members-only report.

Trust me — you’ll want to read this report before putting another dollar into any tech stock.

For a ridiculously low price of just $9.99 a month, you can unlock a year’s worth of in-depth investment research and exclusive insights – that’s less than a single fast food meal!

Here’s why this is a deal you can’t afford to pass up:

• Access to our Detailed Report on this Game-Changing AI Stock: Our in-depth report dives deep into our #1 AI stock’s groundbreaking technology and massive growth potential.

• 11 New Issues of Our Premium Readership Newsletter: You will also receive 11 new issues and at least one new stock pick per month from our monthly newsletter’s portfolio over the next 12 months. These stocks are handpicked by our research director, Dr. Inan Dogan.

• One free upcoming issue of our 70+ page Quarterly Newsletter: A value of $149

• Bonus Reports: Premium access to members-only fund manager video interviews

• Ad-Free Browsing: Enjoy a year of investment research free from distracting banner and pop-up ads, allowing you to focus on uncovering the next big opportunity.

• 30-Day Money-Back Guarantee:  If you’re not absolutely satisfied with our service, we’ll provide a full refund within 30 days, no questions asked.

If you’re thinking about getting in, don’t wait – because once Wall Street catches wind of this story, the easy money will be gone.

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $9.99 a month.

2. Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!

No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a month later!

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
  • It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
  • It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

They’re sharing it quietly, away from the cameras, to rooms full of ultra-wealthy clients.

Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

  • The AI infrastructure supercycle
  • The onshoring boom driven by Trump-era tariffs
  • A surge in U.S. LNG exports
  • And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

This isn’t a hype stock. It’s not riding on hope.

It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 100+% Return within 12 to 24 months.

We’re now offering month-to-month subscriptions with no commitments.

For a ridiculously low price of just $9.99 per month, you can unlock our in-depth investment research and exclusive insights – that’s less than a single fast food meal!

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $9.99.

2. Enjoy a month of ad-free browsing, exclusive access to our in-depth report on the Trump tariff and nuclear energy company as well as the revolutionary AI-robotics company, and the upcoming issues of our Premium Readership Newsletter.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!


No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a month later!