Top Dividend Stocks To Consider For Your Portfolio

As an investor seeking income and long-term growth, dividend stocks can be an excellent addition to your portfolio. These companies consistently distribute a portion of their earnings to shareholders, providing a steady income stream and the potential for capital appreciation. With that in mind, let's explore some top dividend stocks to consider for your portfolio, focusing on their dividend growth, yield, and overall performance.

1. Lowe's Companies (LOW)
Lowe's is a leading home improvement retailer with a strong track record of dividend growth. The company has increased its dividend by an impressive 15.8% annually over the past five years. With a current yield of 1.93% and a P/E ratio of 19.1, Lowe's offers a attractive combination of income and value. Its strong market position and focus on growth markets like aerospace support ongoing increases in its dividend.



2. Visa (V)
Visa is the world's largest payment processing company, with a dominant market position and high margins. The company has increased its dividend by 15.7% annually over the past five years, despite a meager yield of 0.78%. However, Visa's shares are priced at a premium, given its 29.6 P/E ratio. Its strong market dominance and high margin suggest room for future payout growth.

3. Parker-Hannifin (PH)
Parker-Hannifin is an industrial technology firm with a diverse product range and focus on growth markets like aerospace. The company has a five-year dividend growth rate of 13.1% and offers a decent 1.2% yield. Its shares, however, are priced at a premium at 25.6 times trailing earnings.

4. Nordson (NDSN)
Nordson is a precision manufacturing solutions provider with a strong global reach. The company has grown its dividend by 12.3% annually over the past five years, with a below-average 1.15% yield. Nordson's shares trade at a premium at 28.2 times trailing earnings, which is premium territory.



5. Abbott Laboratories (ABT)
Abbott Laboratories is a diversified healthcare company with a strong dividend growth record. The company has increased its dividend by 11.4% annually over the past five years, with a generous 2.16% yield. However, Abbott's shares are one of the most expensive dividend growers on this list, with shares exchanging hands at 32.2 times trailing earnings.

6. Target (TGT)
Target is a retail behemoth with a strong omnichannel strategy and brand strength. The company has grown its dividend by 11.1% annually over the past five years, with a rather generous 2.99% yield. Target's shares are trading in bargain territory at 16.8 trailing earnings, making it an attractive play for value-oriented dividend investors.

7. Nike (NKE)
Nike is an athletic apparel and footwear company with a global brand strength and focus on direct-to-consumer sales. The company has increased its dividend by 10.8% annually over the past five years, with a 2.04% yield and 19.5 P/E ratio. Nike's shares have been in a prolonged downward trend due to unfavorable competitive dynamics in the athletic apparel industry, which investors should carefully consider from a weighting perspective.

8. S&P Global (SPGI)
S&P Global is a financial intelligence and analytics provider with a key role in financial markets and data analytics. The company has grown its dividend by 9.8% annually over the past five years, with only a 0.76% yield. S&P Global's shares trade at a staggering 53.7 times trailing earnings, which may limit share-price appreciation in the near term. Still, its wide economic moat in a critical sub-industry of the financial sector should translate into strong dividend growth and share price appreciation for investors willing to hold for the long haul.

9. Amgen (AMGN)
Amgen is a biotechnology company with a strong product pipeline and focus on innovative therapies. The company has raised its dividend by 9.2% annually over the prior five years, with a sizable 2.72% yield. Amgen's shares are priced at a hefty 47.4 times trailing earnings, which may be warranted if Amgen's weight-loss pipeline bears fruit.

10. AbbVie (ABBV)
AbbVie is a biopharmaceutical company with a strong dividend growth record, despite its aggressive acquisition strategy and headwinds emanating from the loss of exclusivity for Humira. Its diverse product range and solid clinical pipeline should support additional dividend increases over the balance of the decade. AbbVie qualifies as a high-yield stock, with shares paying a 3.06% annualized yield. However, its 51.3 P/E ratio may limit share-price appreciation in the near term.

In conclusion, these top dividend stocks offer attractive income and growth prospects for long-term investors. By considering their dividend growth, yield, and overall performance, investors can build a well-rounded portfolio that generates steady income and capital appreciation. Keep in mind that it's essential to diversify your portfolio and regularly review and rebalance your holdings to maintain your desired level of risk and return.