12 Best Dividend Growth Stocks to Buy Now: ValueSense Stock Picks & Analysis
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Explore diverse stock ideas covering technology, healthcare, and commodities sectors. Our insights are crafted to help investors spot opportunities in undervalued growth stocks, enhancing potential returns. Visit us to see evaluations and in-depth market research.
Market Overview & Selection Criteria
Dividend growth stocks remain a cornerstone for investors seeking both income and capital appreciation. In 2025, robust earnings, resilient cash flows, and prudent payout ratios define the best opportunities. Our selection methodology emphasizes companies with consistent dividend per share (DPS) growth, sustainable payout ratios, and strong sector positioning. The ValueSense platform screens for financial health, historical dividend growth, and forward-looking catalysts to curate this watchlist.
Featured Stock Analysis
Stock #1: NVIDIA Corporation (NVDA)
Quick Stats Table:
| Metric | Value |
|---|---|
| Dividend Payout Ratio (LTM) | 1.1% |
| Cash Flow Payout Ratio | 1.4% |
| DPS Growth 1Y | 82.2% |
| DPS Growth 3Y | 58.0% |
| DPS Growth 10Y | 18.2% |
| Dividend Yield | 0.0% |
| Yield on Cost (1Y) | 0.0% |
Investment Thesis:
NVIDIA stands out as a technology leader, driving innovation in AI, graphics, and data centers. Despite a minimal dividend yield, the company’s extraordinary DPS growth—82.2% over the past year and 58% over three years—signals a commitment to returning capital as earnings surge. With a low payout ratio, NVIDIA retains ample flexibility to reinvest in growth while gradually increasing shareholder returns. The company’s robust cash flow and dominant market position underpin its ability to sustain dividend growth, even as it prioritizes reinvestment.
Key Catalysts:
- AI and data center expansion fueling revenue and profit growth
- Strong balance sheet and cash generation
- Ongoing product leadership in GPUs and accelerated computing
Risk Factors:
- Cyclical semiconductor demand
- High valuation multiples
- Competitive pressures from other chipmakers
Stock #2: Microsoft Corporation (MSFT)
Quick Stats Table:
| Metric | Value |
|---|---|
| Dividend Payout Ratio (LTM) | 23.6% |
| Cash Flow Payout Ratio | 33.6% |
| DPS Growth 1Y | 11.1% |
| DPS Growth 3Y | 11.0% |
| DPS Growth 10Y | 11.8% |
| Dividend Yield | 0.6% |
| Yield on Cost (1Y) | 0.7% |
Investment Thesis:
Microsoft’s consistent double-digit dividend growth over the past decade reflects its stable earnings and dominant position in cloud computing, software, and enterprise solutions. With a conservative payout ratio and strong cash flow, Microsoft balances capital returns with ongoing innovation and acquisitions. Its diversified revenue streams and wide economic moat support reliable dividend increases, making it a core holding for dividend growth investors.
Key Catalysts:
- Azure cloud platform expansion
- Recurring revenue from Office 365 and enterprise software
- Strategic acquisitions and AI integration
Risk Factors:
- Regulatory scrutiny in the tech sector
- Currency headwinds impacting international sales
- Slower growth in legacy software segments
Stock #3: Broadcom Inc. (AVGO)
Quick Stats Table:
| Metric | Value |
|---|---|
| Dividend Payout Ratio (LTM) | 57.2% |
| Cash Flow Payout Ratio | 43.4% |
| DPS Growth 1Y | 16.2% |
| DPS Growth 3Y | 16.6% |
| DPS Growth 10Y | 35.4% |
| Dividend Yield | 0.7% |
| Yield on Cost (1Y) | 1.4% |
Investment Thesis:
Broadcom’s blend of semiconductor and infrastructure software businesses delivers robust cash flows and high returns. The company’s impressive 10-year DPS growth rate of 35.4% demonstrates a shareholder-friendly capital allocation policy. With a moderate payout ratio and strong free cash flow, Broadcom is well-positioned to sustain dividend hikes while investing in strategic acquisitions and R&D.
Key Catalysts:
- Expansion in networking and data center markets
- Integration of recent software acquisitions
- Ongoing demand for connectivity and infrastructure solutions
Risk Factors:
- Integration risks from acquisitions
- Exposure to cyclical semiconductor markets
- Regulatory and supply chain uncertainties
Stock #4: Oracle Corporation (ORCL)
Quick Stats Table:
| Metric | Value |
|---|---|
| Dividend Payout Ratio (LTM) | 40.6% |
| Cash Flow Payout Ratio | (85.9%) |
| DPS Growth 1Y | 12.0% |
| DPS Growth 3Y | 12.9% |
| DPS Growth 10Y | 14.4% |
| Dividend Yield | 0.6% |
| Yield on Cost (1Y) | 1.1% |
Investment Thesis:
Oracle’s steady dividend growth is underpinned by its entrenched position in enterprise software and cloud services. The company’s payout ratios and DPS growth rates indicate a measured approach to capital returns, balancing shareholder distributions with investments in cloud infrastructure and AI-driven solutions.
Key Catalysts:
- Cloud infrastructure growth
- Expansion of AI and data analytics offerings
- Recurring revenue from enterprise software
Risk Factors:
- Intense competition in cloud services
- Legacy business transition challenges
- Volatile cash flow metrics
Stock #5: Visa Inc. (V)
Quick Stats Table:
| Metric | Value |
|---|---|
| Dividend Payout Ratio (LTM) | 22.3% |
| Cash Flow Payout Ratio | 20.5% |
| DPS Growth 1Y | 16.3% |
| DPS Growth 3Y | 15.3% |
| DPS Growth 10Y | 18.3% |
| Dividend Yield | 0.7% |
| Yield on Cost (1Y) | 0.8% |
Investment Thesis:
Visa’s global payments network delivers consistent growth and high margins, supporting a strong track record of dividend increases. With a low payout ratio and robust DPS growth, Visa’s business model is resilient to economic cycles and benefits from the ongoing shift to digital payments.
Key Catalysts:
- Growth in electronic and cross-border payments
- Expansion into new markets and fintech partnerships
- Increasing adoption of contactless and mobile payments
Risk Factors:
- Regulatory risks in payments industry
- Competition from fintech disruptors
- Macroeconomic sensitivity to consumer spending
Stock #6: Mastercard Incorporated (MA)
Quick Stats Table:
| Metric | Value |
|---|---|
| Dividend Payout Ratio (LTM) | 19.2% |
| Cash Flow Payout Ratio | 15.9% |
| DPS Growth 1Y | 16.3% |
| DPS Growth 3Y | 15.8% |
| DPS Growth 10Y | 18.8% |
| Dividend Yield | 0.5% |
| Yield on Cost (1Y) | 0.6% |
Investment Thesis:
Mastercard’s scalable payments platform and global reach drive reliable earnings and dividend growth. The company’s prudent payout ratios and double-digit DPS growth rates highlight its ability to reward shareholders while investing in innovation and security.
Key Catalysts:
- Expansion in digital and cross-border payments
- Strategic fintech collaborations
- Growth in e-commerce and mobile transactions
Risk Factors:
- Regulatory and antitrust scrutiny
- Currency fluctuations
- Competition from alternative payment providers
Stock #7: Johnson & Johnson (JNJ)
Quick Stats Table:
| Metric | Value |
|---|---|
| Dividend Payout Ratio (LTM) | 53.3% |
| Cash Flow Payout Ratio | 72.1% |
| DPS Growth 1Y | 7.1% |
| DPS Growth 3Y | 12.6% |
| DPS Growth 10Y | 9.4% |
| Dividend Yield | 2.8% |
| Yield on Cost (1Y) | 3.0% |
Investment Thesis:
Johnson & Johnson’s diversified healthcare portfolio and strong balance sheet support its status as a reliable dividend grower. With a 2.8% yield and steady DPS growth, JNJ appeals to investors seeking both income and stability, backed by leadership in pharmaceuticals, medical devices, and consumer health.
Key Catalysts:
- New drug launches and pipeline development
- Expansion in medical devices and diagnostics
- Global healthcare demand growth
Risk Factors:
- Litigation and regulatory risks
- Patent expirations
- Currency and macroeconomic headwinds
Stock #8: The Home Depot, Inc. (HD)
Quick Stats Table:
| Metric | Value |
|---|---|
| Dividend Payout Ratio (LTM) | 64.7% |
| Cash Flow Payout Ratio | 62.9% |
| DPS Growth 1Y | 3.7% |
| DPS Growth 3Y | 14.3% |
| DPS Growth 10Y | 19.6% |
| Dividend Yield | 2.2% |
| Yield on Cost (1Y) | 2.3% |
Investment Thesis:
Home Depot’s leadership in home improvement retail, combined with a 2.2% yield and strong long-term DPS growth, makes it a compelling choice for dividend investors. The company’s scale, supply chain efficiency, and focus on professional customers drive resilient earnings and cash flows.
Key Catalysts:
- Housing market recovery and renovation trends
- Expansion of professional services
- E-commerce and omnichannel growth
Risk Factors:
- Sensitivity to housing cycles and consumer spending
- Supply chain disruptions
- Competition from online and brick-and-mortar retailers
Stock #9: General Electric Company (GE)
Quick Stats Table:
| Metric | Value |
|---|---|
| Dividend Payout Ratio (LTM) | 33.9% |
| Cash Flow Payout Ratio | 29.6% |
| DPS Growth 1Y | 93.8% |
| DPS Growth 3Y | 29.2% |
| DPS Growth 10Y | (15.8%) |
| Dividend Yield | 0.4% |
| Yield on Cost (1Y) | 0.6% |
Investment Thesis:
GE’s recent turnaround is reflected in its remarkable 93.8% DPS growth over the past year, signaling renewed confidence in its capital allocation. While the 10-year DPS trend is negative, recent restructuring and focus on core industrial businesses position GE for sustainable dividend growth going forward.
Key Catalysts:
- Restructuring and focus on aviation and energy
- Improved cash flow and profitability
- New product launches in renewable energy
Risk Factors:
- Execution risk in transformation strategy
- Cyclical end markets
- Legacy liabilities and debt
Stock #10: UnitedHealth Group Incorporated (UNH)
Quick Stats Table:
| Metric | Value |
|---|---|
| Dividend Payout Ratio (LTM) | 35.9% |
| Cash Flow Payout Ratio | 30.8% |
| DPS Growth 1Y | 10.5% |
| DPS Growth 3Y | 13.6% |
| DPS Growth 10Y | 19.7% |
| Dividend Yield | 2.5% |
| Yield on Cost (1Y) | 1.5% |
Investment Thesis:
UnitedHealth’s integrated healthcare model and strong cash flow generation underpin its consistent dividend growth. With a 2.5% yield and double-digit DPS growth, UNH offers a blend of income and growth potential, supported by leadership in managed care and healthcare services.
Key Catalysts:
- Expansion of Optum health services
- Growth in Medicare Advantage and Medicaid
- Technology-driven healthcare solutions
Risk Factors:
- Regulatory changes in healthcare policy
- Medical cost inflation
- Competition from other insurers
Stock #11: The Coca-Cola Company (KO)
Quick Stats Table:
| Metric | Value |
|---|---|
| Dividend Payout Ratio (LTM) | 69.3% |
| Cash Flow Payout Ratio | (1,171.5%) |
| DPS Growth 1Y | 7.2% |
| DPS Growth 3Y | 11.3% |
| DPS Growth 10Y | 6.0% |
| Dividend Yield | 3.0% |
| Yield on Cost (1Y) | 2.8% |
Investment Thesis:
Coca-Cola’s iconic brand and global distribution network support a reliable 3.0% dividend yield. While payout ratios are elevated, the company’s stable cash flows and defensive business model make it a staple for income-focused investors.
Key Catalysts:
- Product innovation and portfolio diversification
- Expansion in emerging markets
- Cost management and efficiency initiatives
Risk Factors:
- Currency fluctuations and global economic trends
- Shifting consumer preferences
- Regulatory pressures on sugary beverages
Stock #12: Novo Nordisk A/S (NVO)
Quick Stats Table:
| Metric | Value |
|---|---|
| Dividend Payout Ratio (LTM) | 45.6% |
| Cash Flow Payout Ratio | 81.8% |
| DPS Growth 1Y | 21.1% |
| DPS Growth 3Y | 30.6% |
| DPS Growth 10Y | 18.0% |
| Dividend Yield | 2.9% |
| Yield on Cost (1Y) | 1.3% |
Investment Thesis:
Novo Nordisk’s leadership in diabetes and obesity treatments drives robust earnings and dividend growth. With a 2.9% yield and strong DPS growth, NVO is well-positioned to benefit from rising global healthcare demand and innovation in metabolic disease therapies.
Key Catalysts:
- New product launches in diabetes and obesity
- Expansion in emerging markets
- Strong R&D pipeline
Risk Factors:
- Patent expirations and biosimilar competition
- Regulatory and pricing pressures
- Currency volatility
Portfolio Diversification Insights
This watchlist spans technology, healthcare, consumer staples, financials, and industrials, offering broad sector exposure. Technology (NVDA, MSFT, AVGO, ORCL) and healthcare (JNJ, UNH, NVO) provide growth and defensive characteristics, while consumer staples (KO) and financials (V, MA) add stability and income. The mix of high-growth and high-yield stocks supports risk-adjusted returns and resilience across market cycles.
Market Timing & Entry Strategies
Entry timing should consider valuation, sector momentum, and macroeconomic trends. Dollar-cost averaging and staggered purchases can mitigate volatility. Monitoring earnings releases, dividend announcements, and sector rotation signals can help refine entry points for each stock.
Explore More Investment Opportunities
For investors seeking undervalued companies with high fundamental quality, our analytics team provides curated stock lists:
📌 50 Undervalued Stocks (Best overall value plays for 2025)
📌 50 Undervalued Dividend Stocks (For income-focused investors)
📌 50 Undervalued Growth Stocks (High-growth potential with strong fundamentals)
🔍 Check out these stocks on the Value Sense platform for free!
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FAQ for Dividend Growth Stocks
Q1: How were these stocks selected?
A1: Stocks were chosen based on consistent dividend growth, sustainable payout ratios, and strong sector positioning, as identified by ValueSense’s proprietary screening and analysis tools.
Q2: What's the best stock from this list?
A2: The “best” stock depends on individual investment goals. For growth, NVIDIA and Broadcom stand out; for income, Johnson & Johnson and Coca-Cola offer higher yields.
Q3: Should I buy all these stocks or diversify?
A3: Diversification across sectors and business models can reduce risk. Investors may consider a mix of these stocks to balance growth and income potential.
Q4: What are the biggest risks with these picks?
A4: Key risks include sector-specific headwinds, regulatory changes, competitive pressures, and macroeconomic volatility. Each stock’s risk profile is detailed in its analysis.
Q5: When is the best time to invest in these stocks?
A5: Optimal timing varies by stock. Consider valuation, earnings momentum, and market conditions. Dollar-cost averaging can help manage entry risk.
Summary & Investment Outlook
The 11 best dividend growth stocks highlighted here offer a blend of income, growth, and sector diversification. Each company demonstrates a strong track record of dividend increases, supported by resilient business models and forward-looking catalysts. For more in-depth analysis and to explore intrinsic value tools, visit ValueSense.