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These Are the Top 5-Year Dividend Growth S&P 500 Stocks


Feb. 12 2018, Published 11:45 a.m. ET

Showcasing the dividend growers

As market participants debate the intensity of the market carnage versus the improving fundamentals, this series will sift through the top five S&P 500 dividend growers. Stocks have been ranked in order of highest average five-year dividend growth.

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The top five versus the broad indexes

The chart below shows that Amgen (AMGN) has been the only stock that has beaten the dividend yield of the broad indexes. The average dividend yield of the top five dividend growth stocks has fallen short of the broad indexes’ dividend growth.

Broad index carnage

The S&P 500 (SPX-INDEX) offers a dividend yield of 2.3% and a PE (price-to-earnings) ratio of 22.9x. It rose 10% and 19% in 2016 and 2017, respectively. However, it has fallen 4% YTD (year-to-date). The SPDR S&P 500 ETF (SPY) tracks the S&P 500. The Dow Jones Industrial Average (DJIA-INDEX) has a dividend yield of 2.2% and a PE ratio of 25x. It rose 13% and 25% in 2016 and 2017, respectively. It fell 4% YTD. The SPDR Dow Jones Industrial Average ETF (DIA) tracks the Dow Jones Industrial Average. The NASDAQ Composite (COMP-INDEX) has a PE ratio of 25.5x. It has had returns of 8%, 28%, and -2% in 2016, 2017, and the YTD period, respectively. The Fidelity NASDAQ Composite Index Track (ONEQ) tracks the NASDAQ Composite.

The upcoming parts of this series will discuss the revenue and earnings growth drivers and dividend yields of the stocks we’re discussing.

Dividend ETFs

The Vanguard Dividend Appreciation ETF (VIG) has a PE of 23.5x and a dividend yield of 1.9%. It has 29% exposure to industrials. The iShares Select Dividend ETF (DVY) has a PE of 20.3x and a dividend yield of 3.1%. It has 26% exposure to utilities.


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