10 Dividend Growth Stocks to Consider in 2019


If you are unfamiliar with the advantages of a dividend growth stock, this article will help you get a better understanding and make some broad recommendations to get you started. The basic parts of a dividend growth stock are an above average dividend and a stock price that has a significant long term upside. There are dividend stocks that are steady and reliable but whose stock price remains stable (some like to think of it as stagnant) for many years. A growth stock will make you a meaningful profit but between the buy and sell order you cannot expect much other than a minimal dividend, if any.

This list will offer some opportunities from various industries, so you can consider both diversifying your portfolio and taking advantage of the benefits of banking a profit now and taking a profit later. There are many other dividend growth stocks to choose from, so be sure and do your homework to find the stocks that best fit your portfolio and your financial situation.

1. United Technologies (UTX)

We will star with one of the more interesting opportunities on the list. United Technologies is expected to split into three companies, giving would-be investors a choice of where they want to put their money. The presumed strategy is this approach, projected to be completed by the end of the year, will separate the weak parts of the company from the profitable ones. The two leading divisions in terms of profitability will be aerospace technology and defense technology. By the numbers, the company is currently paying a 2.23% dividend which has steadily increased over the past 25 years.

2. Apple Computer (AAPL)

Of course the average investor would expect this company to be on the list. From its founding more than 40 years ago, Apple has continued to be a consumer trendsetter with products such as the iPad and iPhone. Its current direction is switching over to become a more service-oriented company with its ApplePay and iTunes offerings. It has shown a propensity to begin opening up access to its proprietary software for third party development.

3. Exxon Mobil (XOM)

One of the world’s largest and best known oil companies, it is planning to greatly increase its capital expenditures over the next 5 years which often means reducing the stock dividend as cash is redirected to expansion. However, Exxon Mobil seems to be one of the few companies that can pull this expansion off without decreasing its dividends, as it has demonstrated for the past 36 years. By the numbers, the company is currently paying a dividend of 4.0 percent and has a market value just under $350 billion.

4. Outfront Media (OUT)

It is unlikely most readers have heard of this stock unless you happen to follow the real estate and advertising sectors. It is one of the few companies that focuses on the brand and reputation of its clients more than its own. That staying under the radar approach has allowed it to become one of the most diverse and profitable outdoor advertising companies in the market. One of its latest projects was to display more than 50,000 advertising boards in a large number of New York City’s transportation stations. By the numbers, it is paying an incredible 6.06 percent dividend to shareholders while keeping its revenue humming along at a steady pace.

5. Illinois Tool Works (ITW)

If you are someone who wants to go with the underdog, then Illinois Tool Works may be of interest to you. The business environment of Illinois is dismal, with the state looking at bankruptcy, unable to meet payroll for its unions, and people fleeing the state. The numbers speak louder than anything about this stock. It went from a high of $179 a share in January, 2018 to $119 by the end of the year. The dividend is still a decent 2.7% despite 2018 being a dismal year. What should be noted here is that the company has been able to meet and expand its dividend for the past 50 years – consecutively. If it can recover to its 2018 highs you will have a double bonus to look forward to.

6. Intel (INTC)

Returning to more familiar faces, Intel, like Apple Computer, has been around since before the wave of personal computers became a household necessity. Despite the move to mobile devices, the company has been able to adjust to market conditions and is still the dominant player in the microchip processor market. When it comes to consistency of dividend payments and long term growth, Intel has been around since 1968 and consistently been an investor favorite.

7. Occidental Petroleum (OXY)

This is a recommendation that you want to look further into before buying as the company has changed its strategy and the future is somewhat uncertain. With a stock price of $68.04, it can be a bit pricey for investors so if the long term prospects don’t hold up there might be a small long term drop in price. But with a dividend of 4.7% it’s hard to overlook this possibility if you have about $7,000 to invest. It’s not just the high yield that is attractive but also the fact that the company has a record of paying out that dividend consistently for the past 16 years.

8. Sherwin-Williams (SHW)

If you own a home you likely have heard of and used a Sherwin-Williams product. One of the rules for beginning investors is to buy a stock that you are familiar with its product or service. If you painted a room or outside surface, chances are you used a Sherwin-Williams product. If you liked it then you should have an optimistic view of the company. By the numbers it has a relatively low dividend of only 1% but the company’s 2018 full year cash flow was more than $2 billion. You will want to keep an eye on home sales data when buying this dividend growth stock.

9. Chevron (CVX)

This is the third (and final) energy stock to make the list. What is unique about Chevron is that it is truly an oil company in every sense of the word. It is involved in every step of the oil processing process, from the pumps in the field to the delivery of the refined product to market. Add to that the fact that from a financial perspective the company is very committed to paying out significant dividends to shareholders and you have what may be the ideal dividend growth stock. By the numbers, it has a market value of just over $240 billion, paying out a dividend of 3.8%, paying out that dividend every year for the past 32 consecutive years. It is an expensive stock (though not in Apple Computer territory) with a price of $162.42 a share.

10. Genuine Parts Company (GPC)

If you think you have never heard of Genuine Parts Company, it is because you are the victim of a company hiding its rather generic company name with its popular brand – NAPA. An auto parts company. Of all the companies on this list, GPC has paid out dividends for the most consecutive years – 62. The current dividend yield is 2.7% which puts it in the average range of the companies on this list. Like Sherwin-Williams, if your car needs to be repaired now or in the future, you will likely be using one of their products. As a recent survey showed that the number of cars on the road at least 12 years is increasing, you can expect the need for GPC products and services to see an increase in demand and stock price.

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