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.
Fastest-Growing Dividend Stocks
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.
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%.
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.
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.