5 Best Dividend Growth Stocks With 10%+ Yearly Increases

In this article, we will 5 best discuss dividend growth stocks with 10% yearly increases. If you want to read our detailed analysis of dividend companies and their returns over the years, go directly to read 12 Best Dividend Growth Stocks With 10%+ Yearly Increases. 

5. The Allstate Corporation (NYSE:ALL)

5-Year Average Annual Dividend Growth Rate: 18%
Years of Consistent Dividend Growth: 14

The Allstate Corporation (NYSE:ALL) is an American insurance company that provides a wide range of related services to different industries. In January, BMO Capital initiated its coverage on the stock with a Market Perform rating and a $130 price target. The firm mentioned that the company is well-positioned to rebuild capital with lower buybacks.

The Allstate Corporation (NYSE:ALL) has raised its dividend at an annual average rate of 18% in the past five years, which makes it one of the best dividend growth stocks on our list. The company also holds a 14-year track record of dividend growth. It currently offers a per-share dividend of $0.85 every quarter and has a dividend yield of 2.65%, as of February 1.

At the end of September 2022, 38 hedge funds tracked by Insider Monkey owned stakes in The Allstate Corporation (NYSE:ALL), up from 37 a quarter earlier. These stakes have a total value of over $564.3 million. Cliff Asness and Israel Englander were some of the company’s leading stakeholders in Q3.

4. Texas Instruments Incorporated (NASDAQ:TXN)

5-Year Average Annual Dividend Growth Rate: 18.1%
Years of Consistent Dividend Growth: 19

Texas Instruments Incorporated (NASDAQ:TXN) is a Texas-based semiconductor manufacturing company that also specializes in various integrated circuits. In FY22, the company reported an operating cash flow of $8.7 billion and its free cash flow amounted to $5.9 billion, which represented 30% of its revenue. During Q4 2022, the company returned nearly $2 billion to shareholders in dividends and share repurchases.

In 2022, Texas Instruments Incorporated (NASDAQ:TXN), one of the best dividend growth stocks, extended its dividend growth streak to 19 years. Moreover, the company’s 5-year annual average dividend growth stands at 18.1%. It currently pays a quarterly dividend of $1.24 per share and has a dividend yield of 2.80%, as of February 1.

Following the company’s Q4 earnings beat, Street analysts presented a positive stance on Texas Instruments Incorporated (NASDAQ:TXN). In January, both BMO Capital and UBS raised their price targets on the stock to $215 and $190, respectively.

At the end of Q3 2022, 59 hedge funds in Insider Monkey’s database owned stakes in Texas Instruments Incorporated (NASDAQ:TXN), growing from 55 a quarter earlier. The collective value of these stakes is over $1.78 billion.

3. NextEra Energy, Inc. (NYSE:NEE)

5-Year Average Annual Dividend Growth Rate: 18.3%
Years of Consistent Dividend Growth: 26

NextEra Energy, Inc. (NYSE:NEE) is an American energy company that invests in energy infrastructure across the US. At the end of December 2022, the company had over $1.6 billion available in cash and cash equivalents and its total assets amounted to nearly $13.5 billion. Its operating cash flow for the year came in at $8.2 billion.

In January, Guggenheim maintained a Buy rating on NextEra Energy, Inc. (NYSE:NEE) with a $96 price target, noting the company’s recent quarterly earnings. The firm also appreciated the company’s utility performance.

In the past five years, NextEra Energy, Inc. (NYSE:NEE) has raised its dividend at an annual average rate of 18.3%. It pays a quarterly dividend of $0.425 per share and has a dividend yield of 2.28%, as of February 1. The company’s strong dividend policy and a 26-year-long dividend growth streak make it one of the best dividend growth stocks.

The number of hedge funds tracked by Insider Monkey owning stakes in NextEra Energy, Inc. (NYSE:NEE) grew to 73 in Q3 2022, from 59 in the previous quarter. The collective value of these stakes is over $2.1 billion.

ClearBridge Investments mentioned NextEra Energy, Inc. (NYSE:NEE) in its Q3 2022 investor letter. Here is what the firm has to say:

“NextEra Energy, Inc. (NYSE:NEE) is an integrated utility business with a regulated utility operating in Florida and the largest wind business in the U.S. NextEra’s regulated business includes Florida Power & Light, which serves nine million people in Florida. NextEra’s share price rose along with the passage of the U.S. Inflation Reduction Act, which considerably expands support for renewable energy.”

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

5-Year Average Annual Dividend Growth Rate: 20.95%
Years of Consistent Dividend Growth: 9

Best Buy Co., Inc. (NYSE:BBY) is a Minnesota-based consumer electronics company that deals in a wide range of tech products. In December, Credit Suisse initiated its coverage of Best Buy Co., Inc. (NYSE:BBY) with a Neutral rating and a $90 price target, highlighting the company’s improving gross margins.

Best Buy Co., Inc. (NYSE:BBY) currently offers a quarterly dividend of $0.88 per share and has a dividend yield of 3.97%, as of February 1. The company maintains a 9-year streak of consistent dividend growth and has increased its payouts at an average rate of 20.95% in the past five years. The company is one of the best dividend growth stocks on our list.

Best Buy Co., Inc. (NYSE:BBY) was a part of 31 hedge fund portfolios in Q3 2022, growing from 26 in the previous quarter, as per Insider Monkey’s data. The stakes owned by these funds have a total value of $296.8 million. With over 1.3 million shares, Citadel Investment Group was the company’s leading stakeholder in Q3.

1. Pool Corporation (NASDAQ:POOL)

5-Year Average Annual Dividend Growth Rate: 21.76%
Years of Consistent Dividend Growth: 11

Pool Corporation (NASDAQ:POOL) is one of the world’s largest distributors of swimming pool supplies and outdoor living products. The company pays a quarterly dividend of $1.00 per share and has a dividend yield of 1.04%, as of February 1. It has raised its dividend at an annual average rate of 21.76% in the past five years, which makes it one of the best dividend growth stocks. Moreover, the company also holds an 11-year streak of consistent dividend growth.

KeyBanc raised its price target on Pool Corporation (NASDAQ:POOL) to $387 with an Overweight rating on the shares. The firm sees ‘compelling entry points’ into an attractive long-term industry.

The number of hedge funds tracked by Insider Monkey owning stakes in Pool Corporation (NASDAQ:POOL) stood at 42 in Q3 2022, up from 40 in the previous quarter. The collective value of these stakes is nearly $1.3 billion.

Baron Funds mentioned Pool Corporation (NASDAQ:POOL) in its Q3 2022 investor letter. Here is what the firm has to say:

“Pool Corporation (NASDAQ:POOL) is the world’s largest distributor of swimming pool supplies, equipment, and related leisure products and is also one of the top three distributors of irrigation and landscape suppliers in the U.S. The company sells over 200,000 products from over 2,200 suppliers to over 120,000 professional contract and retailer customers through its 400-plus sales centers across 12 countries, with 70% of its transactions occurring in person. Within its core pool category, Pool has strong market share and is bigger than its next fifty competitors combined, giving Pool a strong scale advantage and allowing the company to invest in its products, technology, customer service, and supply chain to differentiate itself. Over 60% of Pool’s revenues come from maintenance and repair of existing pools, providing Pool with a large and growing recurring revenue base as more pools are built each year.

Pool has a long history of delivering organic and inorganic growth supported by the recurring nature of most of its revenues while consistently taking market share each year. We believe management will continue to deliver on its growth targets as the company today benefits from favorable U.S. population migration trends and demographic shifts (de-urbanization, southern migration), an aging pool installed base, an increasing number of new features, and technology content both in and around the pool. Pool also recently acquired Porpoise Pool & Patio, which includes a retail store franchise business and chemical packaging operation, enabling new sales and margin growth opportunities for the business.

As the stock sold off on fears of a housing-related slowdown in the pool industry, we accumulated additional shares of this best-in-class company as we believe the current share price is attractive relative to the long-term growth opportunity and value of the business.”

You can also take a look at 15 Undervalued Defensive Stocks for 2023 and 10 Most Undervalued Utility Stocks to Buy

Follow Insider Monkey on Twitter