14 Best Large Cap Dividend Growth Stocks To Buy Now

1. Tractor Supply Company (NASDAQ:TSCO)

5-Year Average Annual Dividend Growth Rate: 26.47%

Tractor Supply Company (NASDAQ:TSCO) is a Tennessee-based farm supplies company that sells home improvement and related equipment and supplies. The company recently acquired Allivet, a pet pharmacy business, expanding its reach in the pet care industry. With over 200 pet stores under the Petsense brand and pet supplies available at its Tractor Supply locations, this acquisition offers an additional growth opportunity for the company, even though growth may be gradual. In the past year, the stock has surged by over 18%.

In the fourth quarter of 2024, Tractor Supply Company (NASDAQ:TSCO) reported net sales of approximately $3.8 billion, reflecting a 3% year-over-year increase. This growth was driven by new store openings and a rise in comparable store sales. Earnings per share (EPS) for the quarter were $0.44, a slight 3% decrease from the previous year. However, both net sales and EPS fell slightly short of expectations. Gross profit grew by 2.8%, reaching $1.33 billion, up from $1.29 billion in the same quarter last year.

Tractor Supply Company (NASDAQ:TSCO)’s cash position also remained strong. The company ended the quarter with about $252 million available in cash and cash equivalents. In FY24, it generated $1.4 billion in operating cash flow. This cash position enabled the company to pay $472.5 million worth of dividends to shareholders in 2024. It currently offers a quarterly dividend of $1.10 per share and has a dividend yield of 1.58%, as of February 12. TSCO is one of the best dividend stocks on our list as the company has been growing its payouts for 15 consecutive years.

Overall Tractor Supply Company (NASDAQ:TSCO) ranks first on our list of the best dividend growth stocks. While we acknowledge the potential for TSCO 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 TSCO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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