10 Exceptional Stocks With Double-Digit Dividend Raises
Why It Matters
The list highlights high‑quality dividend‑growth stocks that combine earnings strength with defensive characteristics, guiding investors toward reliable income and potential price appreciation in uncertain markets.
Key Takeaways
- •Screen requires five consecutive years of 10% dividend growth.
- •Stocks must have Morningstar moat and low‑to‑medium uncertainty ratings.
- •Yield must exceed 1% and be covered by Morningstar analysts.
- •Ten companies qualified this year, down from thirteen last year.
- •Several qualifiers trade at 10%+ discounts to fair value.
Summary
The episode introduces Morningstar’s annual "Dividend Growers" list, a curated set of stocks that have increased their per‑share dividend payouts by at least 10% for five straight calendar years. Host Ivana Hampton interviews newsletter editor David Herrell, who explains the four‑point screen: five years of 10%+ dividend growth, coverage by Morningstar analysts, a narrow or wide economic moat, low‑to‑medium uncertainty, and a minimum 1% yield.
Herrell notes the list shrank from 13 to 10 this cycle, with seven repeaters—Accenture, Snap‑On, NextEra Energy, SBA Communications, Domino’s Pizza, Zions Bancorporation, and MSCI—and three newcomers: Intuit, Motorola Solutions, and TJX. He also outlines a “near‑miss” tier for stocks that miss one or two criteria, citing UnitedHealth and others that fell short on growth or uncertainty ratings.
Key anecdotes illustrate the methodology’s nuance: Broadcom’s dividend grew over 10% but price appreciation pushed its yield below 1%, excluding it. TGX rebounded from a pandemic‑era 74% cut to re‑enter the list, while Motorola’s yield rose above the 1% threshold. Valuation isn’t a screen factor, yet five qualifiers—Zions, Accenture, Intuit, Domino’s, and SBA—trade at 10%‑plus discounts to Morningstar fair‑value estimates.
For investors, the list signals companies with robust earnings and disciplined capital allocation, offering a defensive edge in volatile markets despite modest current yields. Combining growth consistency with attractive valuation gaps can help income‑focused portfolios balance yield, quality, and upside potential.
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