Investors love it dividend stocks because they provide reliable income and the best chance of a strong total return. Total return includes interest, capital gains, dividends, and distributions received over time. In other words, the total return on an investment or portfolio consists of income and stock appreciation. At 24/7 Wall St., we’ve focused on stocks for over 15 years because, despite the ups and downs of the stock market, many people need reliable income streams to supplement their income from work or other sources like Social Security and pensions.
In accordance with According to the Internal Revenue Service (IRS), passive income generally includes income from employment or any trade, business, or investment in which a person does not actively participate. It may also include income from limited partnerships, stocks, bonds, and other similar businesses in which the investor is not actively involved. When a minimum wage includes rising costs—such as housing, insurance, taxes and other expenses—it is easier for investors to set aside money for future needs as they prepare for retirement. Reliable ongoing benefits, paid monthly or quarterly, are the way to success.
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Dividend stocks provide income and total returns through capital gains and distributions, making them useful for supplementing employment income and preparing for retirement.
The survey identified five companies that are rated Buy by major Wall Street firms and have grown dividends by double digits over the past three years, positioning themselves to fight inflation with reliable ongoing payouts.
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We checked our 24/7 Wall St. stocks database, we look for high-quality companies that have increased their payouts to shareholders by double-digit percentages over the past three years. In an economy that may still be experiencing more inflation, having companies raising dividends in the double digits makes sense in an era of rising prices. All five companies we found are top Wall Street firms we cover.
The analyst who called NVIDIA in 2010 recently named his top 10 stocks and ADP was not one of them. Get them here for FREE.
Why do we cover companies that grow dividends in the double digits?
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Since 1926, Equities accounted for about 32% of the S&P 500’s total return, while capital appreciation accounted for 68%. Therefore, sustainable dividend income and the potential for capital appreciation are essential to the expected total return. A study by Hartford Funds, in collaboration with Ned Davis Research, found that equities delivered an annual return of 9.18% over the 50 years from 1973 to 2023. At the same time, this was more than double the annual return for defaulters (3.95%).
ADP
This company, founded in 1949, is a global leader in payroll and HR services and provides cloud-based software trusted by more than 80% of Fortune 100 companies. Automatic Data Processing (NYSE: ADP) is a global technology company engaged in providing cloud-based human capital management (HCM) solutions that include HR, payroll, talent, time, tax, and benefits management.
Benefits of ADP from its top position in payroll and HR services, with recurring revenue, such as subscriptions, and pays a dividend of 3.03%, which has increased by double digits (12.36%) each year, on average, over the past five years. Its categories include:
Employer The services segment serves clients from small businesses with one employee to large enterprises with tens of thousands of employees worldwide, offering a range of technology-based HCM solutions, including its cloud-based platforms and Human Resource Outsourcing (HRO) solutions (excluding PEO).
For the company Contributions include:
Payment Services
Managing Benefits
Talent Management
Personnel Management
Personnel Management
Compliance Services
Insurance Services
Retirement Services
Its PEO business, called ADP TotalSource, provides clients with project management solutions. ADP serves more than 1.1 million clients in 140 countries and territories.
Cantor Fitzgerald it has a buy rating with a target price of $244.
Broadcom
This technology the giant was on fire. Most investors probably don’t know that it has raised its payout by an average of 19.25% annually over the past five years, making it one of tech’s most aggressive dividend producers — despite its paltry 0.60% yield — as shares have grown over the past year. Broadcom (NASDAQ: AVGO) is a global technology firm that designs, develops, and provides a range of semiconductors, business software, and security solutions.
Company it works in two stages. The Semiconductor Solutions segment includes all of its product lines and the licensing of intellectual property (IP). Broadcom offers:
Radio-frequency semiconductor devices
Wireless connectivity solutions
Custom touch controls
Seamless charging solutions for mobile applications
Infrastructure The software component includes:
Private and hybrid cloud
Application development and delivery
Software defined edge
Networking and security application
Main frame
Distributed solutions and cybersecurity
FC SAN business
Broadcom offers a portfolio of software solutions that enable customers to plan, optimize, automate, manage, and secure applications across mainframe, distributed, mobile, and cloud platforms.
JP Morgan It has an Overweight rating and a $500 price target.
NextEra Energy
This is a top company One Wall Street stock, which pays a dividend of 2.49%. NextEra Energy (NYSE: NEE )’s dividend payouts per share have grown by an average of 10.05% over the past 36 months (three years) and 10.11% over the past 60 months. The company has recorded 32 consecutive years of dividend increases. The company has made its goal clear: NextEra Energy continues to expect to grow its earnings per share by about 10% annually through at least 2026, up from 2024.
NextEra Energy is a power and energy infrastructure company. It operates through its wholly owned subsidiaries, NextEra Energy Resources and NextEra Energy Transmission (collectively, NEER), and Florida Power & Light Company (FPL). The company is working with Google to develop gigawatt-scale data center campuses and will develop 2.5 GW of Meta solar projects. NextEra also agreed to a 25-year deal with Alphabet to acquire 3 gigawatts of power from an advanced nuclear plant.
Part of FPL is a regulated electric utility that generates, transmits, distributes, and sells electric power in Florida. FPL has approximately 35,052 megawatts of net generating capacity, more than 91,000 circuit miles of transmission and distribution lines, and 921 substations.
Part of NEER owns, develops, builds, manages, and operates power generation facilities in major energy markets in the United States and Canada and includes assets and investments in other businesses focused on clean energy, such as battery storage, natural gas pipelines, and renewable fuels. It owns, develops, builds, and operates quality controlled transmission facilities in North America.
HSBC has it rating of buy and target price of $106.
Parker-Hannifin
This is the top the company’s payouts have increased by an average of 14.26% annually over the past five years. With 67 years of consecutive dividend growth, Parker-Hannifin (NYSE: PH) has long surpassed the 50-year Dividend King limit and focuses on motion and control technology, with an annual yield of 0.81%.
Company designs, manufactures, and provides aftermarket support for highly engineered solutions. Its categories include:
Diversified Industry
Aerospace Systems
Diversified Industry segment, a combination of several business units, sells highly developed, differentiated products to both original equipment manufacturers (OEMs) and distributors serving the replacement market. This division serves a variety of markets, including:
Aerospace Systems The segment sells highly engineered, disassembled airframe and engine components and systems to OEMs and aftermarket parts and maintenance directly to end users primarily in the commercial aerospace and defense markets. Its products include fuel systems and components, avionics, flight control systems, and more.
Citigroup has a buy rating with a target price of $1,141.
SBA Communications
This is a cell phone tower REIT is one of five new additions to Morningstar’s list of companies with five or more consecutive years of double-digit dividend growth, placing it among a very select group of consistent double-digit dividend investors. SBA Communications (NASDAQ: SBAC) is an independent owner and operator of wireless communications infrastructure, including towers, buildings, rooftops, distributed antenna systems, and small cells, and currently pays a dividend of 2.09%.
Its main focused on leasing antenna space on its various rental towers to wireless service providers under long-term lease contracts in the United States, South America, Central America, Canada, and Africa. Its categories include:
The one from home The leased portion of the site is leased from T-Mobile, AT&T Wireless, and Verizon Wireless. It owns more than 17,464 sites in the United States and its territories. The International Site Leasing division owns and operates over 22,285 towers in 13 international markets across South America, Central America, Canada and Africa. Site development services include pre-design of the network, site inspection, construction of the related structure, support of space leasing, and more.
Truist Financial has a buy rating with a price objective of $248.
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This analyst’s 2025 pick is up 106% on average. He recently named his top 10 stocks to buy in 2026. Get them here for FREE.
