Top Dow Dividend Growers

As a follow up to last week’s post covering the top REIT dividend growth stocks I wanted to highlight which DOW stocks have the best history of dividend growth. All 30 DOW stocks pay a dividend although some yields are quite low.

Just about every stock in this index is showing at least some positive dividend growth except for BAC and AXP. Only 7 of these stocks are dividend aristocrats and less than half have 15 years or more of consecutive dividend increases. I consider consecutive annual increases to be more important than average dividend growth rates but both are important. 16 companies in the DOW have 5 year dividend growth rates of 7% or more. I give stocks with a dividend growth rate of 7% or more top preference when ranking stocks.

3 Standouts

I tried to narrow down this list to just 3 standouts. So considering a relatively lower P/E ratio, yield over 2%, 20 (almost) years of consecutive dividend increases and 5 year dividend growth rates of 11% or more I found these three stocks. Coincidentally they each have a solid outlook for the future based on current valuations or growth:

McDonald’s (MCD) – Trading at around 18x with a yield of 3.1% and a 5 year dividend growth rate of 13.8%. MCD has increased its dividend for 36 years in a row.

Wal-Mart Stores (WMT) – Trading at 15x with a yield of 2.2% and a 5 year dividend growth rate of 12.5%. WMT has increased its dividend for 37 years and was one of the few stocks that showed as undervalued in the average yield post.

United Technologies (UTX) – Trading at 17x with a yield of 2.3% and a 5 year dividend growth rate of 11.6%. UTX has increased its dividend for 19 years.

The Numbers

Here is the chart for all DOW30 stocks:

CompanySymbolP/EYield5yr Div
Growth %
Yrs of Div
Procter & GamblePG19.382.9810.7959
Johnson & JohnsonJNJ22.942.958.1850
Wal-Mart StoresWMT15.062.2912.5637
Exxon MobilXOM9.182.599.7430
United TechnologiesUTX17.122.3111.6519
IBM CorpIBM14.1213617.0817
Intel CorpINTC12.273.6514.099
United HealthUNH10.361.4992.843
Home DepotHD24.51.689.033
JP Morgan ChaseJPM9.552.24-4.112
General ElectricGE16.313.08-9.452
Hewlett PackardHPQ--2.189.511
American ExpressAXP16.031.284.891
Cisco SystemsCSCO13.662.16--1
Bank of AmericaBAC45.450.35-55.910

What is your favorite dividend growth stock in the DOW30?


  1. I’m torn between MCD and KO as a favorite, though I’d probably lean in favor of MCD. I’m not sure the raises will be as high over the coming 5 years, but I’d gladly settle for 10%p.a dividend growth over the period.

    • Dividend Ladder

      Can’t go wrong with MCD right now. I’m expecting sustainable revenue and EPS growth momentum from the recent menu changes.

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