Dividend growth stocks represent a powerful cornerstone for building long-term wealth, offering investors a unique combination of current income and potential capital appreciation. These companies, which consistently increase their dividend payments year after year, typically demonstrate strong financial health, stable business models, and a commitment to shareholder returns. The compounding effect of reinvested growing dividends can substantially boost total returns over time, while the rising income stream helps investors keep pace with or exceed inflation.
Moreover, dividend growth stocks often exhibit lower volatility compared to their non-dividend-paying peers, providing a cushion during market downturns. Companies that maintain a track record of dividend increases tend to be well-established market leaders with strong competitive advantages, robust cash flows, and conservative balance sheets. For investors seeking both income and growth, these stocks offer an attractive middle ground between high-yield dividend stocks that may lack growth potential and pure growth stocks that provide no current income. This makes them particularly appealing for investors building retirement portfolios or those seeking to generate reliable, growing income streams while maintaining exposure to market appreciation.
Here are the top 10 dividend growth stocks for January 2025 ranked using Validea’s guru models, which are based on the strategies of great investors like Warren Buffett, Peter Lynch and Benjamin Graham.
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| Ticker | Company Name | Price | Market Cap ($mil) | PE Ratio | Price/ Sales | Relative Strength | Price/ Book | Price/ Cash Flow | Dividend Yield | Long-Term EPS Growth |
|---|---|---|---|---|---|---|---|---|---|---|
| PHM | PULTEGROUP INC | $118.51 | $24,304 | 8.1 | 1.4 | 65 | 2.0 | 7.7 | 0.9% | 27.7% |
| TOL | TOLL BROTHERS INC | $140.69 | $14,074 | 9.4 | 1.3 | 80 | 1.8 | 8.5 | 0.6% | 34.5% |
| RJF | RAYMOND JAMES FINANCIAL INC | $170.65 | $34,949 | 16.7 | 2.3 | 84 | 0.8 | 15.1 | 1.1% | 19.7% |
| VCTR | VICTORY CAPITAL HOLDINGS INC | $66.17 | $4,303 | 16.4 | 5.0 | 91 | 3.7 | 14.5 | 2.2% | 27.4% |
| KNSL | KINSALE CAPITAL GROUP INC | $440.23 | $10,252 | 25.1 | 7.0 | 63 | 7.1 | 99.2 | 0.1% | 53.5% |
| PRI | PRIMERICA, INC. | $291.28 | $9,720 | 14.2 | 3.2 | 72 | 5.0 | 13.3 | 1.1% | 20.4% |
| CMCSA | COMCAST CORP | $33.25 | $127,232 | 8.0 | 1.0 | 31 | 1.5 | 4.2 | 3.7% | 11.9% |
| EWBC | EAST WEST BANCORP INC | $103.59 | $14,361 | 12.4 | 5.5 | 81 | 1.9 | 14.2 | 2.1% | 15.3% |
| WTFC | WINTRUST FINANCIAL CORP | $131.89 | $8,770 | 12.8 | 3.6 | 78 | 1.5 | 11.6 | 1.4% | 14.6% |
| FIX | COMFORT SYSTEMS USA, INC. | $433.86 | $15,442 | 33.2 | 2.4 | 91 | 9.7 | 25.7 | 0.3% | 37.2% |
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