3 Dividend Growth Stocks with Increasing Payouts for 10+ Years

Dividend growth stocks offer increasing dividends, increasing cost return (YOC) and deliver increased revenue. Ideal for investors looking for steady growth, these stocks also allow dividends to be reinvested to generate compound returns over time.

Therefore, income investors Elevance Health, Inc. Consider investing in stocks that provide strong dividend growth, such as (ELV), Enterprise Products Partners LP (EPD) and HP Inc. (HPQ), because their payments have been increasing for over 10 years.

The mixed U.S. economy, along with fluctuating inflation trends and Fed policies, creates uncertainty for investors. The upcoming economic scenario remains uncertain due to interest rate cuts and upcoming presidential elections. Amid this landscape, dividend growth stocks offer stable cash flow and low volatility, making them a safer choice.

Core inflation also increased 0.3% in August 2024This indicates that inflation is stabilizing, which supports more predictable dividend payments as pressures ease. With the U.S. Consumer Price Index (CPI) slowing and core inflation slowing, the economy could shift toward steady growth, making dividend payers an attractive option for consistent returns in a more stable environment.

Additionally, dividend-growing stocks often have lower payout ratios, strong balance sheets, and stable cash flows, making them more resilient to economic downturns. With these favorable trends in mind, let’s analyze the key aspects of three dividend stock picks.

Elevance Health, Inc.(ELV)

ELV operates as a company that provides health benefits. The company operates in four segments: Commercial and Private Business, Government Affairs, CarelonRx, and Other. It supports consumers, families, and communities throughout the entire care journey by connecting them with care, support, and resources to live healthier lives.

In terms of the last 12 months EBITDA marginELV’s 6.63% is 1.3% higher than the industry average of 6.54%. Similarly, a trailing 12-month asset turnover ratio of 1.55x is 275.5% above the industry average of 0.41x. Trailing 12-month EBIT margin of 6.14% is 122.1% above the industry average of 2.77%.

ELV has paid dividends for 12 consecutive years. The annual dividend is $6.52, which represents a 1.25% yield based on the current share price. The four-year average dividend yield is 1.12%. Additionally, the company’s dividend payments have increased at a CAGR of 13.6% over the past three years.

ELV’s net income for the second quarter ended June 30, 2024 increased marginally to $43.89 billion from the prior year. Similarly, the company’s adjusted shareholders’ net income was $2.36 billion, or $10.12 per share, up 9.9% and 11.9%, respectively, from the prior-year quarter.

Additionally, ELV’s total assets stood at $112.99 billion as of June 30, 2024, compared to $108.93 billion as of December 31, 2023.

The Street expects ELV’s EPS and revenue to grow 7.9% and 1.6% year over year to $9.70 and $43.16 billion, respectively, for the quarter ending September 30, 2024. It has surpassed consensus EPS estimates in each of the last four quarters. The stock is up 16.1% over the past year, closing at $520.28 in the latest trading session.

ELVs POWR Ratings It reflects strong expectations. It has an overall rating of B, meaning Buy, in our proprietary system. POWR Ratings evaluates stocks based on 118 different factors, each with its own weight.

Ranked #3 among 10 A-rated stocks Health – Health Insurance industry. It has a B rating for stability. Click here To see ELV’s ratings for Growth, Value, Momentum, Sentiment, and Quality.

Enterprise Products Partners LP (EPD)

EPD provides midstream energy services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, petrochemicals, and refined products. It operates in four segments: NGL Pipelines and Services, Crude Oil Pipelines and Services, Natural Gas Pipelines and Services, and Petrochemical and Refined Products Services.

On August 21, 2024, EPD announced that it would acquire Piñon Midstream for $950 million in cash. This agreement strengthens EPD’s natural gas refining operations in the Delaware Basin and is expected to close in Q4 2024.

On July 10, 2024, EPD announced quarterly cash distributions of $0.525 per unit for the second quarter, an increase of 5.0% from the prior year. The distribution will be paid on August 14, 2024, to shareholders of record as of July 31, 2024.

In terms of Return on Total Assets for the last 12 months, EPD of 7.82% is 44% above the industry average of 5.43%. Trailing 12-month asset turnover ratio of 0.78x is 57.6% above the industry average of 0.49x. Additionally, the trailing 12-month Return on Common Capital of 20.73% is 59.2% above the industry average of 13.02%.

EPD pays an annual dividend of $2.10, which represents a yield of 7.27% based on the current share price. The four-year average dividend yield is 7.63%. Additionally, the company’s dividend payments have increased at a CAGR of 4.6% over the past three years. EPD has paid dividends for the last 25 years.

In the second quarter ending June 30, EPD’s total revenue increased 26.6% compared to the previous year, reaching $13.48 billion. The company’s operating income increased by 11.8% annually, reaching $1.77 billion. Net income and earnings per common unit attributable to common unitholders were $1.41 billion and $0.64, respectively, up 12.1% and 12.3% from the prior year.

For the quarter ending September 30, 2024, EPD’s EPS and revenue are expected to increase 10.12% and 17%, respectively, from the prior year to $0.67 and $14.04 billion. EPD’s shares are up 10.2% in the last nine months, closing at $28.88 in the last trading session.

EPD’s strong outlook is also reflected in the POWR Ratings. It has an overall rating of B, which is equivalent to Buy in our proprietary rating system.

within class A MLPs – Oil and Gas It ranks 10th among 23 stocks in its sector. It has a B rating for Value, Momentum and Stability. To see EPD’s other ratings for Growth, Sentiment and Quality, Click here.

HP Inc. (HPQ)

HPQ provides technologies, solutions and services related to personal computing and other digital access devices, imaging and printing products worldwide. The company operates in three segments: Personal Systems, Printing and Corporate Investments.

On September 25, 2024, HPQ announced the acquisition of collaboration management solutions provider Vyopta to enhance its Workforce Experience Platform. This acquisition will expand HPQ’s ability to provide customers with advanced analytics, monitoring and AI-driven insights for better employee experience and IT management.

In terms of trailing 12-month EBIT margin, HPQ’s 7.90% is 59.4% above the industry average of 4.95%. Return on Total Capital of 29.05% for the last 12 months is 941% above the industry average of 2.79%. Additionally, its trailing 12-month net profit margin of 5.33% is 47.2% above the industry average of 3.62%.

HPQ’s annual dividend rate of $1.10 per share represents a dividend yield of 2.99% on the current share price. Its four-year average return is 3.10%. Dividend payments have increased at a CAGR of 12.5% ​​over the last three years. Additionally, HPQ has paid dividends for 13 consecutive years.

For the third fiscal quarter ending July 31, 2024, HPQ reported total net revenue of $13.52 billion, up 2.4% year over year. Its non-GAAP earnings from operations were $1.09 billion. Moreover, the company’s non-GAAP net earnings were $819 million, or $0.83 per share.

Analysts expect HPQ’s EPS for the quarter ending October 31, 2024 to rise 3.4% annually to $0.93. Its revenue in the same quarter is expected to increase 1.4% annually to $14.01 billion. HPQ’s shares are up 43.3% over the past year, closing at $36.85 in the latest trading session.

HPQ’s strong fundamentals are reflected in its POWR Ratings. It has an overall rating of B, which is equivalent to Buy in our proprietary rating system.

It has a B rating for Value and Quality. Inside Technology – Hardware It ranks 12th among 41 stocks in its sector. To access HPQ’s additional POWR Ratings for Growth, Momentum, Stability, Sentiment and Quality, Click here.

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ELV shares were trading at $525.55 per share, up $5.27 (+1.01%) on Friday afternoon. Year-to-date, ELV has increased by 12.49%, compared to a 21.41% increase in the benchmark S&P 500 index during the same period.

About the Author: Abhishek Bhuyan

Abhishek embarked on his professional journey as a financial journalist due to his keen interest in discerning the key factors affecting the future performance of financial instruments. More…

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