10 Best S&P 500 Stocks to Buy For Dividend Growth

5. Northrim BanCorp, Inc. (NASDAQ:NRIM)

5-Year Average Dividend Growth Rate: 13.88%

Northrim BanCorp, Inc. (NASDAQ:NRIM) is an Alaska-based bank holding company that provides various financial products and services, including checking and savings accounts, loans, mortgages, credit cards, investment services, treasury management, and online banking facilities.

Over the past year, Northrim BanCorp, Inc. (NASDAQ:NRIM) has climbed nearly 54%, driven by several key factors. The acquisition of Sallyport Commercial Finance, LLC on October 31, 2024, led to higher purchase receivable income, which in turn boosted the value of NRIM. In addition, a rise in mortgage banking income during the fourth quarter contributed to this growth, largely due to an increase in the fair value of a mortgage servicing portfolio acquired from another financial institution. At the end of the year, the company’s total assets surpassed $3 billion for the first time.

In its earnings report, Northrim BanCorp, Inc. (NASDAQ:NRIM) emphasized its commitment to profitable growth. Over the past five years, the company’s deposit market share in Alaska has risen from 11% to 16%, while loans and deposits have nearly doubled. Moreover, net interest income has grown by 60% during this period.

On January 27, Northrim BanCorp, Inc. (NASDAQ:NRIM) declared a 3.2% growth in its quarterly dividend to $0.64 per share. This marked the company’s 15th consecutive year of dividend growth. In the past five years, it has raised its payouts at an annual average rate of nearly 14%, which places it on our list of the best dividend growth stocks. As of March 26, the stock supports a dividend yield of 3.39%.