Investing for the long haul? Look no further than dividend growth stocks! These companies consistently increase their payouts to shareholders, providing a steady stream of income and a potential hedge against inflation. But what makes them tick? It’s all about sustainable, profitable growth, which enables them to keep doling out those bigger dividend checks.
To reap the rewards, it’s essential to buy these stocks at a reasonable price and hold on for the long ride. Here are three top dividend growth stocks trading at attractive valuations today, boasting strong track records and bright futures:
First up is Chevron Corporation, a fossil fuel giant with a 37-year streak of dividend increases. Despite the industry’s fluctuations, Chevron’s financial discipline and healthy balance sheet ensure its dividend is poised to grow for years to come. With a yield of almost 4.4%, it’s an attractive option, especially with interest rates on the decline.
Next is Snap-On, the go-to tool brand for professionals. This company has paid and raised its dividend for 15 consecutive years, with an average hike of nearly 15% over the past five years. Its business is built on manual labor, making it less susceptible to technological disruption. With a yield of 2.6% and a reasonable price-to-earnings ratio, Snap-On is an attractive choice for income seekers.
Last but not least is Union Pacific, a railroad behemoth with a 17-year dividend growth streak. Its wide moat and low risk of disruption make it an ideal candidate for sustained dividend growth. With a yield of 2.2% and a manageable payout ratio, Union Pacific is a solid bet for investors seeking income and growth.
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