5 Dividend Growth Stocks for August: Yields Up to 8%

This article highlights five dividend growth stocks with yields up to 8% for August. The author emphasizes that while dividend growth stocks may not be exciting, they provide a stable source of income and can be a valuable addition to a portfolio. The article does not mention specific companies or their dividend growth rates.

In the realm of passive income investing, dividend growth stocks have long been a staple for their stability and reliability. While they may not offer the same thrill as growth stocks, they provide a steady stream of income that can be invaluable to investors seeking to build wealth over time. This article highlights five dividend growth stocks with yields up to 8% that are poised to deliver consistent returns for investors in August 2025.

MDU Resources Group, Inc. (MDU)

MDU Resources recently announced a 7.7% increase in its quarterly dividend rate, bringing the new rate to 14 cents per share. This increase resulted in an annualized dividend of 56 cents per share, up from the previous 52 cents. MDU Resources has a long history of uninterrupted dividend payments, having done so for the past 87 years. The company's focus on infrastructure upgrades and expansions, along with its data center opportunities, positions it for long-term earnings growth, which should support further dividend increases [1].

Brookfield Infrastructure Partners (BIP)

Brookfield Infrastructure Partners offers a 4.8% yield with a 53% payout ratio. The company's diversified portfolio includes utilities, transport, midstream, and data assets, generating stable cash flows. BIP's recent $9 billion acquisition of Colonial Pipeline and its $1.5 billion in new capital projects underscore its growth-oriented strategy. The company's global footprint and strategic positioning in critical infrastructure sectors make it an attractive choice for investors seeking exposure to inflation-linked assets [2].

Enterprise Products Partners (EPD)

Enterprise Products Partners provides a 5.2% yield with a 57% payout ratio. The company's fee-based revenue model and long-term contracts offer downside protection against energy volatility. EPD's focus on the Permian Basin and NGL infrastructure positions it to capitalize on U.S. hydrocarbon demand. The company's robust cash flows and strategic growth capex plans ensure its ability to sustain and grow payouts [2].

Clearway Energy (CWR)

Clearway Energy offers a 3.8% yield with a 1.6x CAFD-to-dividend ratio. The company's renewable energy growth via solar acquisitions and storage investments aligns with decarbonization trends. CWR's strategic positioning in the renewable energy sector, along with its strong liquidity and growth opportunities, make it an attractive choice for investors seeking exposure to clean energy [2].

Chesapeake Utilities Corp. (CPK)

Chesapeake Utilities Corp. offers a 2.2% yield with a 2.8% dividend increase in 2025. The company's consistent performance and regulated returns allow it to reward shareholders with regular dividends. Chesapeake's focus on infrastructure upgrades and its strong cash flows position it for long-term earnings growth [1].

These five dividend growth stocks offer high yields and sustainable payout ratios, positioning them for compounding returns in a low-growth macroeconomic environment. While dividend growth stocks may not be as exciting as other types of investments, their stability and reliability make them a valuable addition to any portfolio.

References:

[1] https://www.nasdaq.com/articles/mdu-resources-boosts-shareholder-value-through-77-dividend-hike
[2] https://www.ainvest.com/news/top-undervalued-dividend-growth-stocks-buy-hold-august-2025-2508/