These stocks have rewarded their shareholders with significant dividend increases in recent years and are likely to continue doing so in the future.
These stocks have rewarded their shareholders with significant dividend increases in recent years and are likely to continue doing so in the future.
The best dividend stocks are often the ones that raise their payouts at high rates. While their yields may not be high today, businesses that are willing and able to grow their payouts significantly could reward long-term investors with much higher dividend payments in the future.
Three stocks that have doubled their payouts in just the past five years include Eli Lilly (LLY -1.36%), Tractor Supply Company (TSCO +0.73%), and American Express (AXP -0.54%). Here's a look at why these dividend stocks can make for excellent pillars to build a portfolio around.
Eli Lilly may just be one of the most underrated dividend stocks to own. Investors may overlook it because its yield is fairly low at just 0.6%, which is far below the S&P 500 average of around 1.1%.
But in recent years, Eli Lilly has been one of the hottest growth stocks to own in the healthcare sector. It's the only healthcare company in the trillion-dollar club. The tremendous growth its GLP-1 drugs have generated for the business has made it a go-to option for growth investors seeking a safe investment to hang on to. And with the stock trading at 24 times its estimated future profits (which are based on analyst expectations), it's not a terribly expensive-looking stock when factoring in its growth opportunities.
Moneyball Superscore
The company's current quarterly dividend of $1.73 is just over twice what it was paying its shareholders back in 2021, when the dividend was $0.85. Due to the company's tremendous growth over the years, there's still room for even more increases, as its payout ratio is modest at just 22%.
Tractor Supply Company
Investors can collect a higher payout from Tractor Supply Company, as its yield is up to 2.9% right now. The retail stock has been struggling this year, declining 33% thus far in 2026, as challenging economic conditions are weighing on its business. The company, which sells a wide range of products for rural customers, however, remains relatively resilient, posting $1 billion in profit over the past four quarters, on revenue of around $15.8 billion.
The stock currently pays investors $0.24 per quarter. It underwent a 5-for-1 stock split in 2024, which means the $0.52 it was paying in 2021 would be $0.104 on a split-adjusted basis. Tractor Supply's dividend, therefore, has increased by 131% since then. The company's payout ratio is around 50%, which is still very manageable and leaves room for it to increase the dividend in future years, even without strong growth.
Averytin News Financial update.