13 Best Dividend Growth Stocks With 10%+ Yearly Increases

6. Mastercard Incorporated (NYSE:MA)

5-Year Average Annual Dividend Growth Rate: 14.54%

Mastercard Incorporated (NYSE:MA) is an American credit card company, headquartered in New York. The company offers a wide range of payment processing and related services to its consumers. The company has earned investor trust thanks to its strong growth, significant competitive advantage, and resilience in tough economic conditions. It primarily earns revenue through swipe fees, collecting just over 2% per transaction from co-branded cards. This straightforward and reliable business model thrives in good times and protects the company from credit risks during economic downturns. In the past 12 months, the stock has surged by nearly 23%.

In the fourth quarter of 2024, Mastercard Incorporated (NYSE:MA) reported revenue of $7.5 billion, which showed a 14% growth from the same period last year. The company’s net income for the quarter came in at $3.5 billion, up from $3 billion in the prior-year period. By December 31, 2024, the company had 3.5 billion Mastercard and Maestro-branded cards issued to its customers.

Mastercard Incorporated (NYSE:MA)’s cash position also remained strong. The company ended the quarter with over $8.4 billion available in cash and cash equivalents and its total assets amounted to over $19.7 billion. In FY24, it generated $14.7 billion in operating cash flow, up from $12 billion in 2023. Due to this strong cash position, the company returned $2.4 billion to shareholders through dividends in 2024.

Mastercard Incorporated (NYSE:MA), one of the best dividend stocks, has been growing its payouts for 13 consecutive years. In the past five years, it has raised its payouts at an annual average rate of 14.5%. The company offers a quarterly dividend of $0.76 per share and has a dividend yield of 0.54%, as of February 8.