When it comes to investing in stocks, dividend growth stocks can be an attractive option for long-term investors. Dividend growth stocks not only provide regular income through dividend payments but also have the potential for capital appreciation. While many well-known dividend growth stocks are often discussed, there are some hidden gems that often go unnoticed. In this blog post, we'll highlight six of the best dividend growth stocks that are flying under the radar.
AbbVie Inc. (ABBV)
AbbVie is a global pharmaceutical company known for its popular drug, Humira. With a strong pipeline of innovative drugs and a commitment to research and development, AbbVie has the potential for both dividend growth and capital appreciation. Despite being overlooked by some investors, AbbVie has consistently increased its dividend and offers an attractive yield.
T. Rowe Price Group, Inc. (TROW)
T. Rowe Price is a leading asset management firm that has been steadily growing its dividend over the years. With a strong reputation, a diverse range of investment products, and a focus on client satisfaction, T. Rowe Price is well-positioned for long-term success. The company's consistent earnings and commitment to shareholder returns make it a compelling dividend growth stock.
JM Smucker Company (SJM)
Known for its iconic brands such as Smucker's, Folgers, and Jif, JM Smucker Company is a consumer goods company with a long history of dividend growth. Despite being overshadowed by larger consumer goods companies, JM Smucker Company's strong market presence, focus on innovation, and commitment to shareholder value make it an appealing choice for dividend growth investors.
NextEra Energy, Inc. (NEE)
As one of the largest renewable energy companies in the United States, NextEra Energy has a bright future ahead. With a growing focus on clean energy and a strong track record of dividend increases, NextEra Energy offers investors the potential for both sustainable dividend growth and exposure to the expanding renewable energy sector.
Hormel Foods Corporation (HRL)
Hormel Foods is a leading food company known for brands such as Spam, Skippy, and Applegate. With a diversified portfolio of products and a history of consistent dividend increases, Hormel Foods presents an opportunity for investors seeking a reliable dividend growth stock in the food industry.
Essential Utilities, Inc. (WTRG)
Formerly known as Aqua America, Essential Utilities is a water and wastewater utility company serving millions of customers across the United States. Water utilities are often overlooked by investors, but Essential Utilities offers stable earnings, consistent dividend growth, and a vital service that is in demand regardless of economic conditions.
In conclusion, while many dividend growth stocks receive significant attention, there are hidden gems that provide compelling opportunities for investors. AbbVie, T. Rowe Price, JM Smucker Company, NextEra Energy, Hormel Foods, and Essential Utilities are six dividend growth stocks that deserve more recognition. As with any investment, it's important to conduct thorough research and consider your own financial goals and risk tolerance before making investment decisions.
