10 Best Dividend Growth Stocks to Buy and Hold in 2025

2. Nordson Corporation (NASDAQ:NDSN)

5-Year Annual Dividend Growth Rate: 14.55%

Nordson Corporation (NASDAQ:NDSN) is an Ohio-based multinational company that designs and produces dispensing equipment used for applying adhesives, sealants, coatings, and other materials. The company is expanding its business through strategic acquisitions, such as its purchase of ARAG in August last year, which has helped the company enter the rapidly growing precision agriculture sector. In May of this year, Nordson acquired Atrion Corporation for approximately $800 million, broadening its medical portfolio into new markets and therapies. This acquisition complements the company’s existing customer base and is expected to have a positive impact on its future performance. With these growth initiatives in place, Nordson is well-positioned to continue growing its earnings, free cash flow, and dividends for the foreseeable future.

Nordson Corporation (NASDAQ:NDSN) posted solid earnings in the third quarter of 2024, with revenues reaching $661.6 million, a 2% increase from the same period last year. Net income for the quarter was $117 million. The Advanced Technology Solutions segment saw growth from the previous quarter, fueled by steady improvements in order entries within the electronics sector. Strong operational execution across the company led to solid gross margins and an impressive 31% EBITDA margin.

Moreover, Nordson Corporation (NASDAQ:NDSN) reported a strong cash position in the latest quarter, ending with over $165.3 million in cash and cash equivalents, compared to $115.6 million in the same period last year. The company’s operating cash flow for the quarter was $460 million. It has a strong dividend history, having raised its payouts for 61 consecutive years. The company currently pays a quarterly dividend of $0.78 per share and has a dividend yield of 1.48%, as of December 29.

As of the end of Q3 2024, 18 hedge funds tracked by Insider Monkey held stakes in Nordson Corporation (NASDAQ:NDSN), down from 21 in the previous quarter. These stakes have a total value of over $68.3 million.