The 9 Best Dividend Growth Stocks to Buy

Adding dividend growth stocks to your portfolio can provide both income and capital appreciation over the long haul. That makes these picks worth a closer look.

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There are two ways to think about dividend growth stocks.

You can view them as companies consistently increasing their annual dividend payment, such as the Dividend Aristocrats. These are individual S&P 500 stocks that have raised their dividend annually for 25 consecutive years or more, and are widely considered to be Wall Street's best dividend stocks.

Or you can view them by the rate at which they are currently growing their dividends, as well as their top and bottom lines. In other words, as both dividend and growth stocks.

In any event, dividend growth stocks have outperformed in various market environments, according to global investment management firm Nuveen.

"Dividend growth stocks have provided an attractive combination of earnings and cash flow growth potential, healthy balance sheets and sustainable dividend policies," the firm's website states. "These stocks have historically offered compelling performance during up markets and provided a buffer during market drawdowns and in volatile environments."

So, for investors eager to pad their portfolio with picks that have the potential to provide both income and capital appreciation over the long haul, here are nine of the best dividend growth stocks to buy now. Each name on this list is expected to increase its annual dividend payment by at least 18% over the next two years, with solid and growing fundamentals to back that up.

Data is as of Feb. 8. Dividend growth rate data courtesy of S&P Global Market Intelligence, unless otherwise noted. Stocks are listed in reverse order of two-year estimated dividend growth rate. 

Will Ashworth
Contributing Writer,

Will has written professionally for investment and finance publications in both the U.S. and Canada since 2004. A native of Toronto, Canada, his sole objective is to help people become better and more informed investors. Fascinated by how companies make money, he's a keen student of business history. Married and now living in Halifax, Nova Scotia, he's also got an interest in equity and debt crowdfunding.