5 Best Dividend Stocks For Steady Growth

In this article, we discuss 5 best dividend stocks for steady growth. If you want to read our detailed analysis of dividend growth stocks and their performance over the years, go directly to read 12 Best Dividend Stocks For Steady Growth. 

5. Pool Corporation (NASDAQ:POOL)

3-Year Average Dividend Growth: 21.86%
Consecutive Years of Dividend Growth: 12

Pool Corporation (NASDAQ:POOL)is a leading distributor of swimming pool supplies, equipment, and related products. The company primarily serves the residential and commercial pool and spa industry. POOL is one of the best dividend stocks on our list as the company has been raising its dividends for 12 years straight. Moreover, its 3-year average dividend growth stands at 21.86%.

Pool Corporation (NASDAQ:POOL) currently pays a quarterly dividend of $1.10 per share and has a dividend yield of 1.24%, as of August 29.

At the end of Q2 2023, 42 hedge funds in Insider Monkey’s database reported having stakes in Pool Corporation (NASDAQ:POOL), up from 41 in the previous quarter. The total value of these stakes is over $1.06 billion.

Aristotle Capital Boston, LLC mentioned Pool Corporation (NASDAQ:POOL) in its Q2 2023 investor letter. Here is what the firm has to say:

“Pool Corporation (NASDAQ:POOL), the world’s largest wholesale distributor of swimming pool supplies and equipment offering pool maintenance, construction, renovation, irrigation, landscape and outdoor living products, was added to the portfolio. We believe the company’s overwhelming leadership position in wholesale distribution, coupled with its high level of recurring, non-discretionary sales should enable the business to continue to deliver strong operating performance in periods to come. New products, investments in technology, and penetration outside of the U.S. also serve as catalysts for future shareholder value creation, in our opinion.”

4. Amcor plc (NYSE:AMCR)

3-Year Average Dividend Growth: 27.10%
Consecutive Years of Dividend Growth: 39

Amcor plc (NYSE:AMCR) is next on our list of the best dividend stocks to buy for steady growth. The global packaging company holds a 39-year track record of consistent dividend growth. It currently pays a quarterly dividend of $0.1225 per share and has a dividend yield of 5.14%, as of August 29.

Insider Monkey’s database of Q2 2023, 24 hedge funds owned investments in Amcor plc (NYSE:AMCR), growing from 22 in the previous quarter. The collective value of these stakes is over $237 million. With over 14.6 million shares, Polaris Capital Management was the company’s leading stakeholder in Q2.

3. Morningstar, Inc. (NASDAQ:MORN)

3-Year Average Dividend Growth: 37.3%
Consecutive Years of Dividend Growth: 11

Morningstar, Inc. (NASDAQ:MORN) is an American financial services firm that provides a wide range of investment research and data to individuals and financial advisors. The company is known for its comprehensive insights into investments, funds, stocks, and other financial assets, as well as its proprietary ratings and analysis.

In the second quarter of 2023, Morningstar, Inc. (NASDAQ:MORN) generated over $504.7 million in revenues, up 7.3% from the same period last year. The company remained committed to its shareholder return, distributing $16 million to investors through dividends during the quarter, which makes it one of the best dividend stocks on our list.

Morningstar, Inc. (NASDAQ:MORN) currently pays a quarterly dividend of $0.375 per share and has a dividend yield of 0.66%, as of August 29. The company has raised its dividends for 11 years in a row.

The number of hedge funds tracked by Insider Monkey owning stakes in Morningstar, Inc. (NASDAQ:MORN) grew to 22 in Q2 2023, from 20 in the previous quarter. The collective value of these stakes is over $970.7 million.

Polen Capital mentioned Morningstar, Inc. (NASDAQ:MORN) in its Q2 2023 investor letter. Here is what the firm has to say:

“Morningstar, Inc. (NASDAQ:MORN) is a leader in providing investment and wealth management data, software, and solutions to the financial services industry. Besides their own “Morningstar” brand, which is held in high regard by investment professionals and financial advisors for their decades-long history of providing cost-effective insight and transparency to a wide breadth of clients, they also own popular services like “Pitchbook,” “Sustainalytics” and “DBRS.” Management has spent the last four years investing heavily in several business lines (like private markets data and ESG) that have depressed margins in the near term but should provide durable growth opportunities for many years. As the company reaps the benefits from these investments over the coming years, we expect margins to track towards their prior levels of 20-25% (from current low-to-mid teens). Combined with low-double-digit revenue growth and management’s long history of opportunistic share buybacks, this should translate into ~20% EPS growth over our holding period.”

2. Tractor Supply Company (NASDAQ:TSCO)

3-Year Average Dividend Growth: 39.3%
Consecutive Years of Dividend Growth: 14

Tractor Supply Company (NASDAQ:TSCO) is a large American retail chain that focuses on providing rural lifestyle products and services to customers in rural and suburban communities. On August 10, the company declared a quarterly dividend of $1.03 per share, which remained unchanged from its previous dividend. The company has raised its dividends for 14 years and its 3-year average dividend growth rate stands at 39.3%. With a dividend yield of 1.88% as of August 29, MORN is one of the best dividend stocks on our list.

Tractor Supply Company (NASDAQ:TSCO) was a part of 37 hedge fund portfolios, compared with 39 in the previous quarter, as per Insider Monkey’s database. The collective value of stakes owned by these hedge funds is over $560.7 million.

Conestoga Capital Advisors mentioned Tractor Supply Company (NASDAQ:TSCO) in its Q2 2023 investor letter. Here is what the firm has to say:

“Tractor Supply Company (NASDAQ:TSCO): TSCO operates over 2,000 retail stores that sell various home/agricultural products to farmers and ranchers. When TSCO reported its Q1 results, it missed its comparable stores estimate due to weather and the stock sold off. TSCO has been a successful long-term holding given solid growth in its end market and superior execution of management.”

1. L3Harris Technologies, Inc. (NYSE:LHX)

3-Year Average Dividend Growth: 44.01%
Consecutive Years of Dividend Growth: 22

L3Harris Technologies, Inc. (NYSE:LHX) tops our list of the best dividend stocks for steady growth. An American tech company has raised its payouts for 22 years straight, with a 3-year average dividend growth rate of 44.01%. It currently pays a quarterly dividend of $1.14 per share and has a dividend yield of 2.58%, as of August 29.

At the end of the June quarter of 2023, 35 hedge funds tracked by Insider Monkey held stakes in L3Harris Technologies, Inc. (NYSE:LHX), worth collectively over $1.43 billion. With over 1.2 million shares, Balyasny Asset Management was the company’s largest stakeholder in Q2.

You can also take a look at 10 Technology Stocks with Insider Buying and 15 Most Shorted Stocks That Are Loved by Analysts

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