Dividend Growth Investing in 2025: High-Conviction Stocks with Double-Digit Payout Increases

has long been a cornerstone of resilient portfolios, offering both income and compounding potential. As we enter the final quarter of 2025, the market is abuzz with companies that have not only maintained their legacy of consistent payouts but have also delivered —a rare and powerful signal of financial strength. Let's dissect the most compelling opportunities for investors seeking high-conviction, income-generating stocks.

The 2025 Dividend Powerhouses

Four U.S. companies have recently announced 10% or more for 2025, each with a track record of at least 50 consecutive years of increases50 U.S. Dividend Stocks With 50+ Years of Consecutive Dividend …^[1]. These firms are not just weathering the economic climate—they're thriving.

1. Walmart (WMT): The retail giant has outpaced its peers with a , the highest among the groupParker Hannifin Corporation Announces 10% Dividend Increase^[3]. This surge reflects Walmart's dominance in e-commerce and its ability to leverage scale in a fragmented retail landscape. With inflationary pressures easing, its cash flow is primed to fuel further shareholder returns.

2. Parker Hannifin (PH): The industrial conglomerate has raised its dividend by , marking its 301st consecutive quarterly payoutParker Declares Quarterly Cash Dividend and Updates Share …^[4]. Parker's focus on mission-critical technologies—ranging from aerospace to energy—positions it as a bellwether for global industrial demand.

3. W.W. Grainger (GWW): The industrial supply chain has delivered a , driven by its digital transformation and expanding footprint in emerging markets50 U.S. Dividend Stocks With 50+ Years of Consecutive Dividend …^[1]. Grainger's recurring revenue model and pricing power make it a standout in a sector often plagued by volatility.

4. RLI Corp (RLI): The insurance and reinsurance firm's underscores its disciplined underwriting and strong capital returnsParker Hannifin Corporation Announces 10% Dividend Increase^[3]. In a low-interest-rate environment, RLI's ability to generate consistent profits is a rare and valuable trait.

The Five-Year Streak Holders: A Hidden Gem

Beyond the 2025 leaders, several stocks have delivered . These include Accenture, Elevance Health, MSCI, SBA Communications, and ZoetisStocks With 5 Years of Double-Digit Dividend Increases^[2]. While their 2025 figures remain unannounced, their five-year consistency signals a culture of shareholder-centricity. For example:
- Accenture has leveraged its cloud and AI expertise to drive recurring revenue.
- Elevance Health (formerly Anthem) has capitalized on healthcare's secular growth.
- MSCI, a data and analytics leader, benefits from the global shift toward ESG investing.

These companies may not be household names, but their dividend trajectories suggest they're quietly building long-term value.

Why This Matters Now

In a market where yield-starved investors are chasing stability, these dividend growers offer a dual benefit: capital preservation and income growth. According to a report by Morningstar, companies with sustained dividend growth outperform the S&P 500 by an average of 2% annually over a decadeStocks With 5 Years of Double-Digit Dividend Increases^[2]. In 2025, with interest rates stabilizing and corporate earnings rebounding, the case for these stocks is stronger than ever.

Final Takeaway

The key to dividend growth investing isn't just finding high yields—it's identifying companies with and disciplined capital allocation. The four 2025 leaders and the five-year streakers exemplify this. For investors, the message is clear: these stocks are not just payouts—they're blueprints for compounding wealth.