Kiplinger

11 Dividend Growth Stocks Flying Under the Radar (For Now)

Stocks that generate consistently rising dividends bolster retirement accounts by providing income that keeps pace with inflation. A group of high-quality dividend stocks known as Dividend Aristocrats have delivered on the promise of reliable income growth for quite some time.

The most commonly known group of Aristocrats are the S&P 500 Dividend Aristocrats - Standard & Poor's 500-stock index components that have produced at least 25 consecutive years of annual distribution increases.

Dividend Aristocrats offer other benefits, too. Dividend Aristocrats often boast steady financial performance, making them less risky than other equities. The S&P 500 Dividend Aristocrats also have outperformed the S&P 500 over time - by almost 2 percentage points annually on average over the past decade. Much of that outperformance comes during market downturns, making them great stocks for riding out periods of turbulence.

This reliability comes at a cost. Many Dividend Aristocrats have become overcrowded, trading at premium prices and depressed yields. But investors have another way to capture steadily rising dividends at a more affordable price: Identify companies that are close to joining the Aristocracy - they still boast decades of dividend growth, but haven't grabbed Wall Street's attention quite yet.

Here are 11 high-quality dividend stocks that aren't quite yet S&P 500 Dividend Aristocrats - but could be given a little more time. Some of these are S&P 500 companies that are within a few years of the 25-year benchmark. Others are smaller stocks that are near, at or even past the 25-year mark, but must ascend to the ranks of the S&P 500 to qualify.

C.H. Robinson Worldwide

Getty Images

Market value: $12.3 billion

Years of dividend growth: 21

Dividend yield: 2.3%

C.H. Robinson Worldwide (CHRW, $89.23) is a global logistics company that's benefiting from the rise of e-commerce. The company handled approximately 18 million shipments last year and served over 124,000 customers.

Its large, loyal customer base gives Robinson a huge competitive advantage. The company's top 500 customers account

You’re reading a preview, subscribe to read more.

More from Kiplinger

Kiplinger5 min read
As the Market Falls, New Retirees Need a Plan
Anyone newly retired or nearly so must feel like they have the worst timing in the world. A portfolio tends to be largest near retirement, just before those savings are about to be drawn down. These days, however, most portfolios have lost value; the
Kiplinger2 min read
Tax-Savvy Charitable Giving With QCDs Can Benefit Both Giver and Receiver
Plenty of retirees like to give back to their communities through charitable donations, but questions often arise over the best way to do that. What approach is efficient, provides the tax benefits you’re after, and also is advantageous for the chari
Kiplinger3 min read
I’ve Inherited a Lot of Money. Now What?
It’s no surprise that many people who inherit millions of dollars are uncertain about what to do with their newfound wealth. The possibilities of becoming a multimillionaire overnight can be overwhelming, especially during a period when most are grie

Related Books & Audiobooks