Dividend growth stocks can serve as a fundamental building block for creating long-term wealth, providing investors with two key advantages: reliable income and the potential for stock price gains. These investments focus on companies that consistently raise their dividend payments annually, reflecting strong financial performance, steady business operations, and a dedication to rewarding shareholders. When dividends are reinvested, compound growth can boost overall returns, while the increasing income helps maintain buying power despite inflation.
Such stocks typically experience less price fluctuation than companies that don’t pay dividends, offering some protection when markets decline. Businesses with established histories of dividend increases are generally well-established market leaders with strong competitive positions, steady cash generation, and thoughtful financial management. For investors wanting both income and growth, dividend growth stocks strike an ideal balance between high-yield investments that may offer limited growth and pure growth companies that generate no immediate income.
This balanced strategy makes dividend growth stocks especially appealing for retirement accounts and investors who want reliable, increasing income while still benefiting from long-term market gains. The approach effectively merges the security of income-focused investments with the wealth-creation potential of growth-focused holdings.
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Here are Validea’s top 10 dividend growth stocks for August of 2025.
| Ticker | Company Name | Price | Market Cap ($mil) | PE Ratio | Price/ Sales | Relative Strength | Price/ Book | Price/ Cash Flow | Dividend Yield |
|---|---|---|---|---|---|---|---|---|---|
| NVO | NOVO NORDISK A/S (ADR) | $49.78 | $169,103 | 12.8 | 3.5 | 15 | 8.4 | 8.6 | 3.8% |
| TOL | TOLL BROTHERS INC | $128.29 | $12,596 | 9.5 | 1.2 | 54 | 1.6 | 8.6 | 0.7% |
| PHM | PULTEGROUP INC | $123.33 | $24,333 | 9.2 | 1.4 | 54 | 1.9 | 8.6 | 0.7% |
| AGM | FEDERAL AGRICULTURAL MORTGAGE CORP | $182.95 | $1,924 | 10.8 | 1.2 | 56 | 1.8 | 2.7 | 3.2% |
| MRK | MERCK & CO INC | $80.30 | $200,572 | 12.4 | 3.2 | 28 | 4.1 | 9.5 | 4.0% |
| CMCSA | COMCAST CORP | $32.10 | $118,520 | 5.3 | 1.0 | 36 | 1.2 | 3.1 | 4.0% |
| GWW | WW GRAINGER INC | $960.70 | $45,952 | 24.2 | 2.6 | 54 | 12.5 | 20.4 | 0.9% |
| KNSL | KINSALE CAPITAL GROUP INC | $437.45 | $10,193 | 22.8 | 6.1 | 45 | 5.9 | 10.4 | 0.2% |
| NEU | NEWMARKET CORP | $761.39 | $7,154 | 15.1 | 2.6 | 79 | 4.4 | 11.9 | 1.4% |
| RMD | RESMED INC | $283.29 | $41,478 | 29.8 | 8.1 | 76 | 7.0 | 25.3 | 0.8% |
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