June 17, 2026 · 10 min read
The highest current yield is often a trap. The real wealth-builder is dividend growth — companies that increase their payout consistently, doubling your income stream every 5–7 years. Here are the best dividend growth stocks for 2026, screened for payout sustainability, streak length, and business quality.
Streak = consecutive years of dividend increases. 5-yr CAGR = annualised dividend per share growth over the past 5 years. Payout ratio based on trailing 12-month GAAP earnings. AI scores from BriMindInvest composite model.
| Ticker | AI Score | Yield | 5yr CAGR | Payout % | Increase Streak | Fwd P/E |
|---|---|---|---|---|---|---|
| MSFT | 87 | 0.72% | +11% | 25% | 22 yrs | 32x |
| AVGO | 84 | 1.6% | +15% | 30% | 13 yrs | 28x |
| V | 88 | 0.81% | +17% | 22% | 16 yrs | 27x |
| UNH | 78 | 1.8% | +14% | 28% | 15 yrs | 18x |
| ABBV | 76 | 3.9% | +8% | 60% | 53 yrs | 14x |
| HD | 80 | 2.5% | +11% | 55% | 15 yrs | 23x |
| LIN | 82 | 1.4% | +8% | 35% | 31 yrs | 26x |
| MCD | 75 | 2.4% | +9% | 60% | 49 yrs | 22x |
At a 15% dividend CAGR, a $1 dividend becomes $2 in 5 years and $4 in 10 years. Even a modest 8% CAGR doubles income every 9 years. This is why dividend growth beats high-yield for long-term total return.
Low yield but consistently growing; 22-year consecutive increase streak; free cash flow of $70B+ supports decades more of dividend growth
AI networking chips and enterprise software (VMware) driving revenue growth; 5-year dividend CAGR of 15%; payoutRatio leaves ample room to grow
Near-zero capex business; dividend grows at 15–20% annually off a low base; 16-year consecutive increase; FCF yield above 5%
15-year consecutive dividend increase; strong FCF from managed care and Optum; dividend doubles roughly every 5 years
53-year Dividend King (S&P Dividend Aristocrat + beyond); Humira biosimilar headwind absorbed; Skyrizi and Rinvoq driving revenue recovery
Housing market recovery catalyst; 2-year SRS Distribution acquisition integrating well; consistent dividend grower since 2009
Industrial gas monopoly economics; long-term take-or-pay contracts with chemical, steel, and semiconductor customers; 31-year dividend increase streak
49-year consecutive dividend increase; primarily a real estate and franchise business; AI drive-through and ordering technology reducing labor costs
Quality-filtered selection based on FCF/debt, ROE, yield, and 5-yr dividend growth; strongest dividend CAGR of any broad dividend ETF
Broader diversification; market-cap weighted; higher starting yield but lower growth rate than SCHD over most periods