The Top 3 Irresistible Dividend Growth Stocks to Buy (and Hold) for the Next Decade

For long-term investors, few ways to build wealth work as reliably as managing dividend growth stocks. Revenues increase over time, and the businesses behind those incremental payments — if chosen carefully — often have incredible staying power.

But not all dividend growth stocks look the same.

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Three words stood out over the next decade: the rural merchant Providing tractors (NASDAQ: TSCO)the beverage giant Coca-Cola (NYSE: KO)and credit card specialists American Express (NYSE: AXP). Each comes to the issue of dividends from a different angle. But they all pair increasing payouts with the kind of revenue generated that should keep the rides coming for years.

1. Supply of Tractors

With its stock down significantly over the past year, Tractor Supply may look like a name in trouble. Shares are trading around $34 as of this writing — well off a 52-week high near $64. But the issue of dividends remains among the most constant things in trading.

In February, the company’s board increased dividends 4.3% to $0.24 per share, bringing the annual payout to $0.96. That marked the company’s 17th year of raising dividends. Combined with the stock’s pullback, the rural retailer’s dividend yield now sits at around 2.7%.

And the basis of its profits is a business that is still growing, despite the stock’s recent decline.

For the first quarter of 2026 (the period ended March 28), Tractor Supply’s net sales increased 3.6% year over year to $3.59 billion, supported by a record 40 new store openings. As mentioned, earnings per share decreased to $0.31 from $0.34 last year. But management reaffirmed full-year guidance of $2.13 to $2.23 — up from $2.06 by 2025.

With a payout ratio averaging 40% of the range, profits have plenty of room to grow.

The company also makes huge returns. In Q1 alone, Tractor Supply returned $244.4 million to shareholders through dividends and share repurchases, building to an estimated $848 million returned by 2025 — an impressive figure for a company with a market capitalization of $18 billion.

2. Coca-Cola

For investors who prize consistency, Coca-Cola is hard to beat. The Atlanta-based beverage giant has now raised its dividend for 64 straight years, putting it in the company of the Dividend Kings, a coveted group of companies that have raised their dividends every year for at least 50 consecutive years.

In February, Coca-Cola’s board raised its quarterly dividend from $0.51 to $0.53. With a new annual average of $2.12, the stock is yielding about 2.6% as of this writing.

In addition, the company is seeing strong business momentum. Coca-Cola’s first-quarter net income rose 12% year-over-year, while GAAP (adjusted) earnings per share jumped 18%. In addition, management raised full-year adjusted earnings per share growth guidance to 8% to 9% — up from 7% to 8% previously.

And Coca-Cola’s dividend looks well covered. The company generated about $11.4 billion in adjusted cash in 2025 compared to dividends paid of about $8.8 billion, and management expects adjusted free cash flow in 2026 to rise to about $12.2 billion.

3. American Express

American Express may be the most overlooked name on this list — at least as an equity stock. The credit card specialist is offering a yield of just 1.2% as of this writing, leaving income-oriented investors uninterested. But for those on a budget, this could be the most exciting of the three.

In March, the company increased its dividend by 16%. Additionally, over the past five years, the dividend has more than doubled, compounded at an annual rate of over 17%.

Driving these big mountains is rapid income growth. In Q1, American Express’ net income, net of interest expense, rose 11% year over year to $18.9 billion, and earnings per share rose 18% to $4.28. Charged business (effectively, what cardholders spend) grew 10% year over year — the strongest pace for a quarter in three years.

This was the company’s “highest growth quarter.” [in spending] in three years,” said CEO Stephen Squeri on American Express’ Q1 earnings call.

With management targeting 2026 earnings per share of $17.30 to $17.90 — roughly 14% growth at the midpoint — and a payout ratio of nearly 22%, the dividend has an upward trajectory.

The stock is also down about 14% year to date, giving investors an attractive entry point.

Long-term pairing

Each of these stocks comes with risks. Tractor Supply is navigating soft comparable store sales and a weak backlog of options. Coca-Cola pays out a high percentage of its free cash flow, leaving a small cushion for its profits if business declines. And American Express is exposed to consumer credit cycles and any weakness in premium consumer spending.

But the strengths of these companies are also complementary. Coca-Cola underpins the group with unparalleled longevity, while American Express offers rapid dividend growth that is rare among financial stocks. As for Tractor Supply, its dividend growth has been very modest of late, but the declining stock price has boosted the initial yield reasonably — and the long-term growth trajectory remains intact.

Taken together over the next decade, these three stocks could provide a solid foundation for income-oriented investors — and incremental payouts that should compound well over time.

Should you buy stock in Coca-Cola right now?

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American Express is an advertising partner of Motley Fool Money. Daniel Sparks and his clients have no position in any of the stocks mentioned. The Motley Fool has positions and recommends American Express and Tractor Supply. The Motley Fool recommends the following options: Short the April 2026 $55 call on Tractor Supply. The Motley Fool has a policy of disclosure.

The Top 3 Unstoppable Dividend Growth Stocks to Buy (and Hold) for the Next Decade was originally published by The Motley Fool.