5 Dividend Growth Stocks with Highest Growth Rates

In this article, we discuss 5 dividend growth stocks with highest growth rates. If you want to read our detailed analysis of dividend growth stocks and their overall performance, go directly to read 14 Dividend Growth Stocks with Highest Growth Rates. 

5. Microchip Technology Incorporated (NASDAQ:MCHP)

3-Year Average Annual Dividend Growth Rate: 29.30%

Microchip Technology Incorporated (NASDAQ:MCHP) is an Arizona-based provider of microcontrollers and analog semiconductors. The company offers a quarterly dividend of $0.45 per share, growing it by 2.5% in February this year. This was the company’s 80th dividend hike since the inception of its dividend policy in 2003. With a 3-year average annual dividend growth rate of nearly 30%, MCHP is one of the best dividend stocks on our list. The stock has a dividend yield of 2.08%, as of April 23.

As of the end of Q4 2023, 43 hedge funds tracked by Insider Monkey held stakes in Microchip Technology Incorporated (NASDAQ:MCHP), up from 42 in the previous quarter. These stakes are worth nearly $840 million in total.

4. Morgan Stanley (NYSE:MS)

3-Year Average Annual Dividend Growth Rate: 32.41%

Morgan Stanley (NYSE:MS) is an American investment management company that offers a wide range of banking and financial services. On April 16, the company announced a quarterly dividend of $0.85 per share, which was in line with its previous dividend. Overall, the company’s three-year average annual dividend growth rate comes in at 32.4%. The stock offers a dividend yield of 3.63%, as recorded on April 23.

According to Insider Monkey’s database of Q4 2023, 56 hedge funds invested in Morgan Stanley (NYSE:MS), compared with 59 in the previous quarter. These stakes have a total value of more than $2.7 billion. Among these hedge funds, Ken Fisher’s Fisher Asset Management was the company’s leading stakeholder in Q4.

3. Old Dominion Freight Line, Inc. (NASDAQ:ODFL)

3-Year Average Annual Dividend Growth Rate: 38.4%

Old Dominion Freight Line, Inc. (NASDAQ:ODFL) is a North Carolina-based transport company that offers premium logistics and household moving services to both domestic and international markets. On January 31, the company declared a 30% hike in its quarterly dividend to $0.52 per share. This marked the company’s sixth consecutive year of dividend growth, which makes ODFL one of the best dividend stocks on our list. In the past three years, it has raised its payouts at an annual average rate of 38.4%. The stock supports a dividend yield of 0.47%, as of April 23.

Old Dominion Freight Line, Inc. (NASDAQ:ODFL) was a part of 43 hedge fund portfolios at the end of Q4 2023, jumping from 36 in the previous quarter, as per Insider Monkey’s database. The stakes held by these hedge funds have a total value of over $533 million.

2. Tractor Supply Company (NASDAQ:TSCO)

3-Year Average Annual Dividend Growth Rate: 40.05%

Tractor Supply Company (NASDAQ:TSCO) is a retail chain company that mainly provides products related to home improvement, agriculture, livestock, and pet care. Its quarterly dividend currently comes in at $1.10 per share after growing its dividends consistently for the past 15 years. Moreover, in the past three years, the company has raised its payouts by 40.05% on average. As of April 23, the stock has a dividend yield of 1.71%.

Of the 933 hedge funds tracked by Insider Monkey at the end of Q4 2023, 30 funds held stakes in Tractor Supply Company (NASDAQ:TSCO), up from 28 a quarter earlier. Their collective stake value is over $545.2 million. With nearly 2 million shares, Select Equity Group was the company’s leading stakeholder in Q4.

1. DICK’S Sporting Goods, Inc. (NYSE:DKS)

3-Year Average Annual Dividend Growth Rate: 47.6%

With a 3-year dividend growth of over 47% on an annual average basis, DICK’S Sporting Goods, Inc. (NYSE:DKS) tops our list of the best dividend growth stocks. The American sporting goods retailer company offers a quarterly dividend of $1.10 per share and has achieved its 15th annual consecutive dividend hike this year. The stock offers a dividend yield of 2.14%, as of April 23.

The number of hedge funds tracked by Insider Monkey owning stakes in DICK’S Sporting Goods, Inc. (NYSE:DKS) grew to 32 in Q4 2023, from 25 in the previous quarter. The consolidated value of these stakes is nearly $967 million.

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