In this article, we will take a look at some of the most reliable dividend stocks.
Companies that consistently raise their dividends are often viewed as financially stable, with solid and sometimes improving competitive positions. Dividend growth stocks also tend to show lower volatility than the broader market, making them a popular choice among investors. As a result, funds centered on “dividend growth” have attracted billions of dollars in capital.
A report from ProShares highlighted that the S&P 500 Dividend Aristocrats Index, which tracks firms with at least 25 straight years of dividend increases, has returned 10.68% annually from its inception in 2005 through December 2023. Over the same period, the S&P 500 delivered a slightly lower return of 10.05%. The Dividend Aristocrats Index also experienced less volatility, averaging 15.30%, compared to 16.24% for the broader benchmark.
The report further pointed out that companies offering high dividend yields often face greater risks during downturns. Many such firms were forced to cut payouts during the 2008 financial crisis, largely due to their higher payout ratios and limited flexibility when cash flows declined. In contrast, dividend growth stocks have shown greater resilience. By steadily raising their dividends over time, they have achieved higher yields on cost than high-yield companies, despite starting with lower initial yields.
Given this, we will take a look at some of the best dividend growth stocks.
Our Methodology
For this article, we used a stock screener to identify 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 11% annually over the last 5 years. The stocks are ranked in ascending order of their annual average dividend growth in the past five years.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
15. Levi Strauss & Co. (NYSE:LEVI)
5-Year Dividend Growth: 11.32%
Levi Strauss & Co. (NYSE:LEVI) stands among the world’s largest branded apparel companies and is a global leader in denim wear. The company designs and markets jeans, casual clothing, and accessories for men, women, and children under its various brands.
On October 14, BTIG began coverage of Levi Strauss & Co. (NYSE:LEVI) with a Buy rating and a price target of $27.00. In its optimistic outlook, the firm pointed to the enduring strength of the Levi’s brand, stating that “the Levi’s brand has never been stronger.” This confidence is backed by the company’s strong performance, including gross profit margins of 61.38% and revenue growth of 11.22% over the past twelve months.
BTIG also highlighted its trust in the management team’s ability to effectively carry out its corporate strategy, positioning the denim maker for sustained growth. The firm forecasted earnings per share of $1.32 for fiscal year 2025, with an expected rise to $1.48 in fiscal year 2026.
Levi Strauss & Co. (NYSE:LEVI)’s shareholder return also remained strong during the quarter, as it distributed $151 million to investors, up 118% from the same period last year. Dividends for the quarter amounted to $55 million, which makes it one of the best dividend stocks to invest in. The company initiated its dividend policy in 2019 and has raised its payouts every year since then. Currently, it offers a quarterly dividend of $0.14 per share and has a dividend yield of 2.77%, as of October 30.
14. Essent Group Ltd. (NYSE:ESNT)
5-Year Dividend Growth: 13.94%
Essent Group Ltd. (NYSE:ESNT) plays a vital role in the US housing finance system by offering private mortgage insurance that protects lenders against potential losses on low-down payment loans. Although mortgage insurance remains its core business, the company has been steadily expanding into title insurance, which covers issues related to property ownership transfers.
On October 7, Keefe Bruyette analyst Bose George increased the firm’s price target for Essent Group Ltd. (NYSE:ESNT) from $67 to $71 while maintaining a Market Perform rating on the stock.
Essent Group Ltd. (NYSE:ESNT) main focus is on maintaining strong partnerships with leading mortgage lenders, staying aligned with GSE regulations, and effectively managing credit risk through reinsurance and disciplined capital allocation. The company’s broader strategy centers on preserving credit quality, enhancing capital efficiency, and delivering solid returns to shareholders.
Essent Group Ltd. (NYSE:ESNT) has been growing its dividends for five consecutive years, and during this period, it has raised its payouts at an annual average rate of nearly 14%. Its quarterly dividend comes in at $0.31 per share and has a dividend yield of 2.04%, as of October 30.
13. Patrick Industries, Inc. (NASDAQ:PATK)
5-Year Dividend Growth: 19.14%
Patrick Industries, Inc. (NASDAQ:PATK) produces and supplies components for several industries, including recreational vehicles (RVs), marine, powersports, and manufactured housing. Its key customers are original equipment manufacturers that build motorboats, boats, and prefabricated homes.
On October 15, Truist analyst Michael Swartz raised the price target for Patrick Industries, Inc. (NASDAQ:PATK) from $105 to $114 while maintaining a Buy rating on the stock. The update came as part of a broader research note in which the firm revised its model estimates and provided a preview of third-quarter earnings for the Recreational Vehicles sector.
In addition to its advancements in its industry, Patrick Industries, Inc. (NASDAQ:PATK) is also popular among income investors because of its strong dividend history. In FY24, the company returned $55 million to shareholders through dividends and share repurchases. It initiated paying dividends in 2019 and has raised its quarterly payouts from $0.25 per share to $0.40 per share during this period. The stock has a dividend yield of 1.59%, as of October 30.
12. Microchip Technology Incorporated (NASDAQ:MCHP)
5-Year Dividend Growth: 19.9%
Microchip Technology Incorporated (NASDAQ:MCHP) designs and produces microcontrollers, analog chips, FPGAs (field-programmable gate arrays), and various supporting semiconductor products used across a wide range of industries. The company’s largest exposure lies in the industrial machinery market, which accounts for about 43% of its revenue, followed by the automotive sector at 18%, bringing total exposure to these two segments to roughly 61%.
Microchip Technology Incorporated (NASDAQ:MCHP) entered fiscal 2026 on a strong note, with revenue rising 10.8% sequentially to around $1.08 billion, surpassing its revised guidance. As part of its ongoing recovery efforts, the company achieved a meaningful reduction in inventory during the June quarter, cutting total inventory by $124.4 million. Distribution inventory days fell by four to 29 days, while balance sheet inventory days declined to 214, reflecting improved working capital management. These advancements in inventory optimization highlight the success of its manufacturing initiatives and have strengthened the company’s operational flexibility as market demand continues to recover.
Microchip Technology Incorporated (NASDAQ:MCHP)’s cash position also remained stable during the quarter. The company reported an operating cash flow of $275.6 million, and its free cash flow came in at $257.7 million. It also returned $245.5 million to shareholders during the quarter through dividends.
Microchip Technology Incorporated (NASDAQ:MCHP) has outlined a goal to return all of its adjusted free cash flow to shareholders, highlighting its focus on long-term value creation. The company initiated its dividend program on December 6, 2002, and has maintained a strong record of shareholder returns ever since. Supported by solid cash flow generation and a disciplined approach to capital allocation, the company has delivered dividends for 92 consecutive quarters, reinforcing its commitment to rewarding long-term investors. In addition, Microchip has raised its dividends 83 times during this period. The company currently offers a quarterly dividend of $0.455 per share and has a dividend yield of 2.94%, as of October 30.
11. Radian Group Inc. (NYSE:RDN)
5-Year Dividend Growth: 21.7%
Radian Group Inc. (NYSE:RDN) operates as a holding company offering mortgage insurance, risk management products, and real estate services to financial institutions.
On October 15, UBS reduced its price target for Radian Group Inc. (NYSE:RDN) from $43 to $40 while maintaining a Neutral rating on the stock.
In September, the company announced a definitive agreement to acquire Inigo Limited, a profitable Lloyd’s specialty insurer, in a deal valued at $1.7 billion, primarily in cash. The acquisition will be financed through Radian’s available liquidity and excess capital from its subsidiaries.
This move represents a major milestone in Radian Group Inc. (NYSE:RDN)’s shift from being a leading US mortgage insurer to becoming a global, diversified specialty insurer. The deal is expected to significantly enhance the company’s product range and expertise while making better use of its excess capital. Once completed, the acquisition is projected to double Radian’s annual revenue and provide greater flexibility in allocating capital across various insurance lines during different business cycles.
Alongside its growth initiatives, Radian Group Inc. (NYSE:RDN) continues to prioritize shareholder returns. During the second quarter, Radian Guaranty distributed a $200 million ordinary dividend to the holding company, while Radian repurchased $223 million worth of shares and paid $35 million in dividends to shareholders. The company has been growing its payouts for six consecutive years, which makes it one of the best dividend stocks to invest in. Currently, it offers a quarterly dividend of $0.255 per share and has a dividend yield of 3.03%, as of October 30.
10. Canadian Natural Resources Limited (NYSE:CNQ)
5-Year Dividend Growth: 22.3%
Canadian Natural Resources Limited (NYSE:CNQ) stands among the largest players in Canada’s oil and gas industry, with vast reserves and operations spanning oil sands, heavy and light crude, offshore sites, and natural gas production.
On October 17, Wells Fargo began coverage of Canadian Natural Resources Limited (NYSE:CNQ) with an Equal Weight rating and a C$47 price target. The firm launched coverage on the broader group of global integrated oil companies, Canadian majors, and refiners, noting that widespread bearish sentiment toward oil and energy stocks may actually open up investment opportunities.
According to the research note, Wells Fargo’s stock selection focuses on companies’ return of capital strategies, which it views as a key driver of relative performance across the sector. While demand indicators remain soft, the firm highlighted that trends in US onshore activity could help offset supply concerns.
Backed by a solid balance sheet, Canadian Natural Resources Limited (NYSE:CNQ) is well-positioned to weather periods of weak energy prices and pursue major acquisitions when opportunities arise. This financial strength has allowed the company to consistently return value to shareholders over the years.
Canadian Natural Resources Limited (NYSE:CNQ) is one of the best dividend stocks, as the company has been growing its payouts for 25 consecutive years. The company’s quarterly dividend comes in at C$0.5875 per share and has a dividend yield of 5.34%, as of October 30.
9. The New York Times Company (NYSE:NYT)
5-Year Dividend Growth: 23.8%
The New York Times Company (NYSE:NYT) stands out as one of the few traditional newspapers that has successfully adapted to the digital age. Though the transition came with challenges, the company now earns most of its revenue from digital subscriptions and online advertising, even though digital ads tend to be less profitable than print.
Its main priorities include expanding its subscriber base, boosting reader engagement, effectively monetizing its digital platforms, and maintaining the high journalistic standards that define its brand. Ongoing investments in technology and product development continue to strengthen its position in the competitive digital media landscape.
In the second quarter of 2025, The New York Times Company (NYSE:NYT) added around 230,000 net new digital-only subscribers, bringing the total to 11.88 million. Average revenue per digital subscriber rose 3.2% year over year to $9.64, largely due to price adjustments and subscribers moving from promotional to regular pricing. This growth in both subscriber count and revenue per user fueled a 15.1% year-over-year increase in digital subscription revenue. Digital advertising revenue also climbed 18.7%, supported by strong demand from marketers in key segments.
Beyond its digital expansion, The New York Times Company (NYSE:NYT) continues to attract investors with steady shareholder returns and a history of consistent dividend growth. In the past five years, the company has raised its dividends at an annual average growth rate of nearly 24%. Moreover, it has been rewarding shareholders with growing dividends for the past seven years. The NYT offers a quarterly dividend of $0.18 per share and has a dividend yield of 1.27%, as of October 30.
8. Diamondback Energy, Inc. (NASDAQ:FANG)
5-Year Dividend Growth: 24.33%
Diamondback Energy, Inc. (NASDAQ:FANG) is an independent oil and gas producer with operations focused in the Permian Basin, a region spanning Texas and New Mexico known for its rich shale resources. The company specializes in extracting oil and natural gas through horizontal drilling and hydraulic fracturing, giving it a strong foothold in one of the most productive energy regions in the US.
On October 20, Susquehanna analyst Charles Minervino lifted the firm’s price target on Diamondback Energy, Inc. (NASDAQ:FANG) to $188, up from $182, while maintaining a Positive rating on the stock. The update comes as the firm revises its estimates and price targets for exploration and production (E&P) companies ahead of third-quarter earnings.
In its latest forecast, Susquehanna trimmed its Q4 WTI crude oil price assumption to $62.50 per barrel, though it kept the 2026 outlook unchanged at $65 per barrel.
Diamondback Energy, Inc. (NASDAQ:FANG) started paying dividends in 2018 and has raised its payouts multiple times since then. It currently offers a quarterly dividend of $1.00 per share and has a dividend yield of 2.74%, as of October 30. In the past five years, FANG has raised its payouts at an annual average rate of 24.33%.
7. Tractor Supply Company (NASDAQ:TSCO)
5-Year Dividend Growth: 25.7%
Tractor Supply Company (NASDAQ:TSCO) runs the largest chain of rural lifestyle retail stores in the United States, catering mainly to hobby farmers, ranchers, homeowners, and pet owners. Its stores offer a broad mix of products, including pet food, livestock feed, tools, hardware, gardening essentials, apparel, and home improvement items. The company’s appeal lies in its role as a “one-stop shop,” allowing customers to find everything they need for rural living in a single trip.
On October 24, Baird analyst Peter Benedict raised the firm’s price target on Tractor Supply Company (NASDAQ:TSCO) to $67 from $65 while maintaining an Outperform rating on the stock. The update follows the company’s solid third-quarter results, with the firm noting that a margin recovery is still expected in 2026.
Tractor Supply Company (NASDAQ:TSCO) has grabbed investors’ attention due to its strong dividend history and growth. The company has grown its payouts for 16 consecutive years, and its 5-year growth rate comes in at 25.7%. It pays a quarterly dividend of $0.23 per share and has a dividend yield of 1.70%, as of October 30.
6. Interparfums, Inc. (NASDAQ:IPAR)
5-Year Dividend Growth: 27.5%
Interparfums, Inc. (NASDAQ:IPAR) designs, manufactures, and markets high-end fragrances under long-term licensing agreements with major fashion houses like Jimmy Choo, Lacoste, Coach, and Montblanc. These partnerships give the company global reach and a diverse product lineup.
Recently, Interparfums, Inc. (NASDAQ:IPAR) has been expanding its portfolio through new licensing deals with brands such as Off-White and Longchamp, while also strengthening its own fragrance lines. The company’s strategy centers on selecting globally appealing brands, supporting their launches with strong marketing, and maintaining efficient distribution. Interparfums also focuses on keeping a flexible balance sheet to support future growth and reward shareholders.
In the third quarter of 2025, Interparfums, Inc. (NASDAQ:IPAR) reported revenue of $430 million, slightly below the consensus estimate of $432 million. Growth during the quarter was supported by strong performances from the Jimmy Choo, Coach, Roberto Cavalli, and MCM brands, while Montblanc and Donna Karan/DKNY recorded declines.
Sales from the company’s European operations climbed 5% year over year, building on the 21% growth achieved in the same period last year. This increase was largely fueled by the continued success of Jimmy Choo’s I Want Choo line, which drove a 16% rise in the brand’s quarterly sales and a 9% increase year to date. Meanwhile, Lacoste Fragrances, now in its second year under the company’s management, remains on track to reach $100 million in annual sales.
Notably, Interparfums, Inc. (NASDAQ:IPAR) has paid dividends for 20 consecutive years, earning a solid reputation among income-focused investors. Moreover, in the past five years, IPAR has raised its payouts at an annual average rate of 27.5%. The company’s quarterly dividend comes in at $0.80 per share and has a dividend yield of 3.58%, as of October 30.
5. Sonic Automotive, Inc. (NYSE:SAH)
5-Year Dividend Growth: 29.02%
Sonic Automotive, Inc. (NYSE:SAH) is one of the largest automotive retailers in the US, operating through three core segments: Franchised Dealerships for new and luxury vehicles, EchoPark for pre-owned cars, and Powersports for motorcycles and ATVs.
On October 24, Needham analyst reduced the firm’s price target on Sonic Automotive, Inc. (NYSE:SAH) from $95 to $90 while maintaining a Buy rating on the stock. In a note to investors, the firm noted that while Sonic’s franchise segment delivered solid results in the third quarter, performance was tempered by ongoing volatility at its EchoPark division amid a sluggish recovery in the used car market.
Despite near-term challenges, Needham remains optimistic about the company’s long-term prospects, citing Sonic’s strong presence in premium brands and the unique EchoPark model that supports sustained unit growth over time.
Sonic Automotive, Inc. (NYSE:SAH)’s cash position has also remained stable over the years, which has eventually resulted in the company’s dividend growth. The company has been growing its dividends for the past five years, and during this period, its dividend growth rate has come in at over 29%. Currently, it offers a quarterly dividend of $0.38 per share and has a dividend yield of 2.44%, as of October 30.
4. Korn Ferry (NYSE:KFY)
5-Year Dividend Growth: 35.2%
Korn Ferry (NYSE:KFY) helps organizations strengthen their talent, leadership, and workforce strategies through consulting, digital platforms, and recruitment services. In recent years, the company has focused on integrating its proprietary data and digital solutions to build recurring revenue and expand its global presence. It continues to invest in technology, including the Talent Suite platform, and has made targeted acquisitions such as Trilogy International to enhance its interim staffing capabilities.
Korn Ferry (NYSE:KFY)’s success relies on combining data-driven insights with consulting expertise, encouraging long-term client relationships, and cross-selling its services across global accounts. These efforts allow the company to maintain a well-diversified and steady business model despite changes in the economic environment.
In its September 2025 report, Korn Ferry (NYSE:KFY) highlighted strong growth in multi-year consulting engagements, record average bill rates of $470 per hour (up from $300 a few years ago), and expansion in interim workforce solutions. The company also continues to deliver value to shareholders, increasing its dividend by 30% in March, marking its fifth consecutive year of dividend growth. During this period, the company has raised its dividends at an annual average rate of 35.2%. Currently, it offers a quarterly dividend of $0.48 per share and has a dividend yield of 2.94%, as of October 30.
3. Winmark Corporation (NASDAQ:WINA)
5-Year Dividend Growth: 35.98%
Winmark Corporation (NASDAQ:WINA) specializes in franchising retail stores that sell secondhand goods across North America. Its well-known brands include Plato’s Closet, Once Upon A Child, Play It Again Sports, Style Encore, and Music Go Round. By the end of 2024, the company operated 1,350 franchise locations, up from 1,319 a year earlier, reflecting steady expansion.
The franchise model remains the core of Winmark Corporation (NASDAQ:WINA)’s business, generating consistent revenue through franchise fees and royalties. The company is gradually exiting its leasing segment, a move that supports higher margins and aligns with its long-term strategy. A growing emphasis on sustainability and supporting the circular economy has also become an important part of the company’s focus.
Winmark Corporation (NASDAQ:WINA)’s strong cash reserves make it an attractive choice for investors seeking steady income. In the third quarter of 2025, the company had over $39.7 million available in cash and cash equivalents, up from $12.1 million at the end of December 2024. Its operating cash flow came in at over $36.3 million. This strong cash position has enabled the company to maintain a solid dividend policy.
In the past five years, it has raised its dividends consistently, at an annual average rate of nearly 36%. Moreover, the company has also paid special dividends during this period, which makes WINA one of the best dividend stocks to invest in. Currently, it pays a quarterly dividend of $0.96 per share and has a dividend yield of 0.98%, as recorded on October 30.
2. Mueller Industries, Inc. (NYSE:MLI)
5-Year Dividend Growth: 36.5%
Mueller Industries, Inc. (NYSE:MLI) is an American manufacturer serving a wide range of industrial markets.
In the third quarter of 2025, the company noted that weakness in residential construction, coupled with an increase in imported products ahead of rising tariffs, had weighed on unit volumes across several of its business segments. Despite these challenges, management emphasized that the team delivered another strong quarter. They highlighted the company’s robust balance sheet and steady cash-generating operations, adding that it remains committed to a long-term strategy while pursuing growth and expansion opportunities with discipline and patience.
Mueller Industries, Inc. (NYSE:MLI)’s financial position remained robust, with net cash from operations totaling $310.1 million for the quarter. The company ended the period with a cash balance of $1.3 billion, a strong current ratio of 4.8 to 1, and a solid foundation that makes it an appealing choice for income-focused investors. It pays a quarterly dividend of $0.25 per share, having raised it by 25% in February. This marked the company’s fifth consecutive year of dividend growth, which makes it one of the best dividend stocks to invest in. The stock supports a dividend yield of 0.95%, as of October 30.
1. Cenovus Energy Inc. (NYSE:CVE)
5-Year Dividend Growth: 42.5%
Cenovus Energy Inc. (NYSE:CVE) is a leading Canadian integrated energy company with operations covering oil and gas production, transportation, storage, refining, and marketing.
The company produces about 815,000 barrels of oil equivalent per day, mainly in Canada. Its refining operations, which handle around 720,000 barrels per day, are largely based in the United States, where about 85% of its refining capacity is located. Roughly 55% of the crude processed is heavy oil, giving Cenovus Energy Inc. (NYSE:CVE) some exposure to the price gap between heavy and light crude.
Cenovus Energy Inc. (NYSE:CVE) holds reserves that can sustain production for roughly a decade, providing a strong foundation for long-term stability. While its returns have been historically volatile, they also tend to be rewarding during favorable market conditions. In fact, the stock has surged by 13% since the start of 2025.
In the second quarter, production was slightly affected by planned maintenance and wildfires near the Christina Lake site. However, downstream utilization remained solid at 92%, helping limit the financial impact. During the quarter, the company generated $2.4 billion in cash from operations, $1.5 billion in adjusted funds flow, $355 million in free funds flow, and distributed $368 million in dividends. This stable cash flow has enabled the company to achieve a five-year dividend growth rate of 42.5%. Currently, it pays a quarterly dividend of C$0.20 per share and has a dividend yield of 3.47%, as of October 30.
While we acknowledge the potential of CVE to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CVE and that has 100x upside potential, check out our report about this cheapest AI stock.
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