4 dividend growth stocks to buy with a 5-year dividend growth rate of 15%

By:
on Nov 24, 2022
Updated: Feb 9, 2024
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  • These four companies saw their stock price rise in the last five years
  • On top of that, they pay a hefty dividend
  • Lowe's Companies gained over 160% in the last five years and the dividend grew by 19.47%

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One of the most popular strategies among retail investors in the stock market is buying shares in companies that pay regular (and increasing) dividends. The power of compounding attracts many investors searching for financial independence, and the higher the dividend, the faster the compounding.

So what are the best four dividend growth stocks with a five-year dividend growth rate of 15%?

Home Depot

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Home Depot (NYSE:HD) is a home improvement retailer from the United States. Headquartered in Atlanta, Georgia, Home Depot is one of the largest employers in the country.

Its stock price gained +84.61% in the last five years. Moreover, during the same period, the company paid a hefty dividend too.

The dividend growth rate for the five-year period is 16.95%, and the current forward dividend yield is 2.36%. Therefore, investors in Home Depot benefited from both the stock price appreciation and the constantly growing dividend.

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Lowe’s Companies

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Lowe’s Companies (NYSE:LOW) is another home improvement retailer in the United States. Smaller than Home Depot, Lowe’s Companies is based in Mooresville, North Carolina, and employs some 300,000 people.

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Its stock price was on the rise, too, in the last five years. It gained +164.34% over the period, and the company currently has a market capitalization of $128.93 billion.

Lowe’s Companies’ five-year dividend growth rate is 19.47%, and it paid a higher dividend for the past 59 consecutive years.

Broadcom

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Broadcom (NASDAQ:AVGO) is an American semiconductors company based in San Jose, California. It employs about 20,000 people, and the stock price gained +87.49% in the last five years.

Over the same period, besides the capital gain, shareholders were paid a hefty quarterly dividend. The five-year dividend growth rate is 32.08%, and the forward dividend yield is 3.07%.

Bank of America

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Bank of America (NYSE:BAC) is one of the largest American companies active in the financials sector. It was founded in 1784, and the stock price gained +41.44% in the last five years.

On top of that, Bank of America pays a quarterly dividend with a five-year growth rate of 19.76%.

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