13 Best Dividend Growth Stocks With 10%+ Yearly Increases

1. Lowe’s Companies, Inc. (NYSE:LOW)

5-Year Average Annual Dividend Growth Rate: 16.39%

Lowe’s Companies, Inc. (NYSE:LOW) is a North Carolina-based home improvement retailer that offers a wide range of related products and services including hardware, tools, appliances, building materials, paint, plumbing supplies, and garden equipment. The company benefits from three main factors that continue to work in its favor. These are the rise in home prices, personal income growth outpacing inflation, and the fact that the average age of homes in the US is at its highest point in history. These factors are expected to drive ongoing demand for the company’s products, as homeowners are likely to keep investing in home improvements and repairs over the long term.

In January, Lowe’s Companies, Inc. (NYSE:LOW) revealed it is now accepting project nominations for Lowe’s Hometowns, a five-year program with a $100 million investment in community revitalization. This year, the company plans to grant $10 million for 100 renovation projects and support 1,700 more projects selected by its employees. In addition, the company pledged $2 million to help with relief and recovery efforts for the Southern California wildfires, further demonstrating its dedication to assisting communities before, during, and after disasters.

Lowe’s Companies, Inc. (NYSE:LOW) has a five-year average payout ratio of only 32.6%, making it one of the best dividend stocks. This conservative payout ratio has allowed the company to increase its dividends for 59 consecutive years. Moreover, the company has raised its payouts at an annual average rate of over 16.3% over the past five years. It offers a quarterly dividend of $1.15 per share for a dividend yield of 1.83%, as of February 8.

Overall Lowe’s Companies, Inc. (NYSE:LOW) ranks first on our list of the best dividend stocks with dividend growth rates. While we acknowledge the potential for LOW as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than LOW but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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