Dividend growth stocks form a cornerstone of long-term wealth building, offering investors a dual benefit: dependable income streams and capital appreciation potential. These investments target companies that demonstrate commitment to shareholders by regularly increasing their dividend payments each year, signaling robust financial health, stable operations, and strong management practices.
The power of reinvesting these growing dividends creates a compounding effect that can significantly enhance total returns over time. Meanwhile, the rising income stream helps investors stay ahead of inflation by preserving and increasing their purchasing power.
Companies that consistently grow their dividends tend to exhibit lower volatility than non-dividend-paying stocks, providing a cushion during market downturns. These businesses are typically established industry leaders with durable competitive advantages, predictable cash flows, and disciplined capital allocation strategies.
For investors seeking both current income and future growth, dividend growth stocks offer an optimal middle ground. They avoid the limitations of high-yield investments that may lack growth prospects while also providing immediate returns that pure growth stocks cannot deliver.
This balanced investment approach makes dividend growth stocks particularly valuable for retirement planning and for investors who desire steady, escalating income alongside long-term capital appreciation. The strategy successfully combines the stability of income-oriented investments with the wealth-building capabilities of growth-focused strategies.
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Here are Validea’s top 10 dividend growth stocks for September of 2025.
| Ticker | Company Name | Price | Market Cap ($mil) | PE Ratio | Price/ Sales | Relative Strength | Price/ Book | Price/ Cash Flow | Dividend Yield |
|---|---|---|---|---|---|---|---|---|---|
| KNSL | KINSALE CAPITAL GROUP INC | $424.24 | $9,885 | 22.2 | 5.9 | 42 | 5.7 | 10.1 | 0.2% |
| TOL | TOLL BROTHERS INC | $141.63 | $13,651 | 10.4 | 1.3 | 45 | 1.7 | 9.3 | 0.7% |
| PHM | PULTEGROUP INC | $134.84 | $26,604 | 10.1 | 1.5 | 47 | 2.1 | 9.4 | 0.6% |
| NVO | NOVO NORDISK A/S (ADR) | $55.62 | $189,267 | 14.2 | 3.9 | 16 | 9.3 | 9.5 | 3.4% |
| MRK | MERCK & CO INC | $81.02 | $202,370 | 12.5 | 3.2 | 27 | 4.1 | 9.6 | 4.0% |
| CMCSA | COMCAST CORP | $32.62 | $120,440 | 5.4 | 1.0 | 36 | 1.3 | 3.1 | 3.9% |
| NEU | NEWMARKET CORP | $831.20 | $7,810 | 16.5 | 2.8 | 82 | 4.9 | 13.0 | 1.3% |
| MLI | MUELLER INDUSTRIES INC | $98.82 | $10,939 | 15.7 | 2.7 | 80 | 3.8 | 14.1 | 0.9% |
| GWW | WW GRAINGER INC | $1,012.62 | $48,436 | 25.5 | 2.8 | 56 | 13.2 | 21.5 | 0.8% |
| WTFC | WINTRUST FINANCIAL CORP | $133.66 | $8,949 | 12.6 | 3.5 | 74 | 1.4 | 10.8 | 1.4% |
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