12 Best Dividend Stocks For Steady Growth

5. Domino’s Pizza, Inc. (NYSE:DPZ)

5-Year Average Dividend Growth: 17.78%

Consecutive Years of Dividend Growth: 12

An American multinational pizza restaurant chain, Domino’s Pizza, Inc. (NYSE:DPZ) ranks fifth on our list of the best dividend stocks for steady growth. On July 18, the company declared a quarterly dividend of $1.51 per share, which fell in line with its previous dividend. The company’s dividend growth streak spans over 12 years and in the past five years, it has raised its payouts at an annual average rate of 17.7%. The stock offers a dividend yield of 1.42%, as of August 23.

Since the start of 2024, Domino’s Pizza, Inc. (NYSE:DPZ) surged by just 3%. The stock fell significantly by over 13.5% between July 17 and July 18, when the company announced its Q2 earnings. Though it reported strong earnings in the quarter, its same-store sales growth fell short of expectations. Investors were particularly discouraged by a modest increase in its operating profits. That said, for the second consecutive quarter, the company achieved U.S. comparable performance in an ideal manner, driven by profitable growth in order count. Positive order counts were seen in both delivery and carryout segments, as well as across all income groups. The strategy is clearly resonating with customers and the entire system, instilling confidence in the company’s ability to create substantial long-term value for its shareholders.

Apart from management’s confidence in Domino’s Pizza, Inc. (NYSE:DPZ)’s operations, investors can take comfort in its solid cash position. In the first two quarters of the year, the company reported an operating cash flow came in at $274.2 million, up from $242.3 million in the same period last year. Its free cash flow also increased to $230.5 million, from $204.3 million on a YoY basis.

Domino’s Pizza, Inc. (NYSE:DPZ) remained popular among elite funds during Q2 2024, as hedge fund positions in the company jumped to 52, from 40 in the previous quarter, as per Insider Monkey’s database. The stakes held by these hedge funds are valued at $1.4 billion. Ken Griffin’s Citadel Investment Group owned the largest stake in the company.