Both long-term and short-term investors often look for fastest-growing dividend stocks. The companies with a history of growing dividends are usually well-received by investors, as dividends can be quite substantial. Today, we’re going to give you a few examples of the fastest-growing dividend companies.
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Fastest-Growing Dividend Stocks
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VISA (V)
Taking a look at VISA’s DIVCON rating, we can see a score of 70 and a rating of 5 out of 5. Having this in mind, VISA is on the top of our list. During the past decade, the company constantly increased its dividend at a 20% compound annual growth rate (CAGR). This is especially noticeable in the last five years. Their dividend payout ratio is still low, at 19%, which provides room for future dividend growth.
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Nvidia Corp. (NVDA)
Nvidia is still able to increase its dividend, which is the trend from 2012, despite the threat from their rival company AMD. Still, Nvidia has a lot to offer when it comes to the GPUs, as well as AI. Taking a good look at their numbers, we see the annualized growth rate of 14% in the past couple of years. Even though we see a slight fall in the stock price in 2018, it still shows a huge potential for dividend growth, with the dividend payout ratio of 11%.
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United Healthcare (UNH)
United Healthcare showed a significant growth potential in 2018, outperforming the S&P 500 with a return of 14%. The company continued that trend in 2019, with the earnings per share growing by 32% since 2018. Needless to say that the company increases its dividend every year since 2010. The dividend payout ratio is at 26%, which is respectable for a company of this scale.
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Ross Stores (ROST)
Ross Stores has an impressive dividend-increase period of 24 years consecutively. Their dividend rate was at 21% until 2018, and in 2018, it was an astounding 41%. The dividend payout ratio of 18% leaves a lot of space for future improvement. This is, quite possibly, going to happen in the near future, as the company enjoys a slightly higher revenue in 2019.
Source: https://www.forbes.com/sites/ericervin/2019/01/15/realityshares/#7f3ff8d65271
