5 Best S&P 500 Stocks For Dividend Growth

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

5. Tractor Supply Company (NASDAQ:TSCO)

5-Year Average Dividend Growth: 28.16%
Number of Hedge Fund Holders: 37

Tractor Supply Company (NASDAQ:TSCO) is an American retail company that specializes in catering to the needs of rural and suburban customers. In the past five years, the company grew its dividends by 28.16% on average. It currently pays a quarterly dividend of $1.03 per share for a dividend yield of 1.89%, as recorded on September 11. It is one of the best dividend stocks on our list with 14 years of consistent dividend growth.

At the end of June 2023, 37 hedge funds tracked by Insider Monkey held stakes in Tractor Supply Company (NASDAQ:TSCO), compared with 39 in the previous quarter. The collective value of these stakes is over $560.7 million.

4. EOG Resources, Inc. (NYSE:EOG)

5-Year Average Dividend Growth: 35.54%
Number of Hedge Fund Holders: 43

EOG Resources, Inc. (NYSE:EOG) is a leading independent exploration and production company in the energy sector. The company was a part of 43 hedge fund portfolios at the end of Q2 2023, up from 41 in the previous quarter, as per Insider Monkey’s database. The collective value of stakes held by these hedge funds is roughly $700 million.

EOG Resources, Inc. (NYSE:EOG), one of the best dividend stocks on our list, currently pays a quarterly dividend of $0.825 per share. The company has been growing its dividends for quite some time now and also has a history of paying special dividends to shareholders. As of September 11, the stock has a dividend yield of 2.54%.

3. Old Dominion Freight Line, Inc. (NASDAQ:ODFL)

5-Year Average Dividend Growth: 35.6%
Number of Hedge Fund Holders: 43

Old Dominion Freight Line, Inc. (NASDAQ:ODFL) is an American transportation and logistics company that specializes in less-than-truckload (LTL) freight services. The company currently pays a quarterly dividend of $0.40 per share and has a dividend yield of 0.38%, as of September 11. With a 5-year dividend growth of 35.6%, ODFL is one of the best dividend stocks on our list.

At the end of Q2 2023, 25 hedge funds in Insider Monkey’s database reported having stakes in Old Dominion Freight Line, Inc. (NASDAQ:ODFL), worth collectively over $265 million. Among these hedge funds, AQR Capital Management was the company’s leading stakeholder in Q2.

2. NRG Energy, Inc. (NYSE:NRG)

5-Year Average Dividend Growth: 65.3%
Number of Hedge Fund Holders: 39

NRG Energy, Inc. (NYSE:NRG) is an American energy company that is primarily involved in the generation and distribution of electricity. The company’s 5-year annual average dividend growth rate stands at 65.3% and it currently pays a quarterly dividend of $0.3775 per share. The stock has a dividend yield of 3.89%, as of September 11.

The number of hedge funds tracked by Insider Monkey owning stakes in NRG Energy, Inc. (NYSE:NRG) grew to 39 in Q2 2023, from 29 in the previous quarter. The collective value of these stakes is over $1.07 billion.

1. The Cigna Group (NYSE:CI)

5-Year Average Dividend Growth: 160.6%
Number of Hedge Fund Holders: 74

The Cigna Group (NYSE:CI) tops our list of the best dividend stocks for growth. The global health services has raised its dividends at an annual average rate of 160.6%. The company currently offers a quarterly dividend of $1.23 per share and has a dividend yield of 1.73%, as recorded on September 11.

As of the end of the June quarter of 2023, 74 hedge funds in Insider Monkey’s database reported having stakes in The Cigna Group (NYSE:CI), compared with 79 in the previous quarter. The overall value of these stakes is over $4.06 billion.

You can also take a look at 10 Best Dividend ETFs and 15 Highest Yielding Dividend Stocks You Can Buy Today

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