Dividend growth stocks are companies with stable cash flow and the ability to increase their distributions annually. They are important for investors because they provide a stable return and leverage for portfolio growth. The ever-increasing per-share dividend distribution provides an increasing annual return that can be reinvested and compounded over time into market-beating performance.
The stocks on the list today are also growth stocks, growing if at a slower pace than riskier high-growth names, adding to the potential for total returns. Total returns are the combined amount of shareholder gains, including share price appreciation and dividends, which, in the case of Packaging Corporation of America (NYSE: PKG), Cintas (NASDAQ: CTAS), and Casey’s General Stores (NASDAQ: CASY), runs in the high-double-digits in 2024, triple digits over the last five years and quadruple for the last ten.
