Dividend Growth Investor: 17 Companies Spreading Holiday Cheers to Shareholders

With markets heading to new all-time highs, valuations are getting stretched for some companies. That could mean a pullback soon for firms whose shares have soared.

But it could also mean an opportunity for investors who focus on buying out-of-favor, dividend-paying stocks. These stocks are shares of companies dedicated to paying part of their earnings out to shareholders over time. Many companies that pay a dividend plan to increase it over time also.

Companies that increase their dividends over time can become dividend achievers and aristocrats. They make for stocks worth buying during market downturns with a long-term holding period in mind.

Many companies have announced dividend increases to end 2023 on a strong note.

For instance, American Tower (AMT), is a real estate investment trust (REIT) that owns cell towers.

AMT shares pay a 3.2 percent dividend yield, and just increased their payout by nearly 5 percent. Over the past 5 years, they’ve grown the dividend an average of 16.6 percent.

Waste Management (WM), one of the largest operators of waste management trucks and facilities, pays a 1.7 percent dividend. But it just raised its dividend by over 7 percent, and has raised its yield by nearly 9 percent on average over the last 5 years.

Dividend growth stocks may not pay the highest yields, but growth over time leads to higher prices. That creates big returns for patient investors. Many of these stocks underperformed in 2023, and look to outperform next year.

To view the full list of dividend growers now, click here.