To The Moon

Over the past five to ten years, dividend growth stocks in the US stock market have generally outperformed most other asset classes. Here are the top 10 US dividend growth stocks with the best "overall quality."

Not only do they boast dividend growth (ranging from 7.69% to 15.8% annually over the past five years), but they also span diverse sectors like retail, healthcare, technology, and finance, offering portfolio diversification potential.

Each stock is carefully picked, considering factors like dividend yield, price-to-earnings ratio, and market position.These elite dividend growth stocks are ideal for long-term capital appreciation and dividend strategies.

1. $Lowe's(LOW)$

With a 15.8% average annual dividend growth over the past five years, Lowe's, the home improvement retail giant, offers a 1.93% dividend yield and a PE ratio of 19.1. Its strong position in the home improvement market bodes well for future dividend growth.

2. $Visa(V)$

Visa, the payment processing giant, boasts a 15.7% average annual dividend growth over the last five years, though its dividend yield is just 0.78%.

Its market dominance and high profit margins pave the way for continued dividend hikes. However, the stock trades at a premium with a PE ratio of 29.6.

3. $Parker Hannifin(PH)$

This industrial technology company has seen a 13.1% average annual dividend growth over the past five years, accompanied by a 1.2% dividend yield.

Its diversified product line and presence in growing markets like aerospace ensure sustained dividend growth. But, it trades at a premium with a PE ratio of 25.6.

4. $Nordson(NDSN)$

Nordson, a precision manufacturing solutions provider, enjoys a 12.3% average annual dividend growth over five years, with a 1.15% dividend yield.

Its specialized solutions and global footprint underpin future dividend hikes. The stock trades at a premium PE of 28.2.

5. $Abbott Laboratories(ABT)$

Abbott, a diversified healthcare company, has delivered a 11.4% average annual dividend growth over the past five years, with a 2.16% dividend yield.

Its diverse portfolio across medical devices, diagnostics, and nutrition offers multiple growth avenues and resilience. However, the stock trades at a PE of 32.2.

6. $Target(TGT)$

The retail giant Target has achieved a 11.1% average annual dividend growth over the last five years, accompanied by a juicy 2.99% dividend yield.

Its multi-channel strategy and brand strength have helped navigate challenges in the competitive retail landscape. With a PE ratio of 16.8, it's attractive for value-oriented dividend investors.

7. $Nike(NKE)$

The sportswear and footwear giant Nike has seen a 10.8% average annual dividend growth, offering a 2.04% dividend yield.

Its global brand strength and DTC strategy underpin future dividend growth. Trading at a PE of 19.5, it offers value opportunities. Yet, investors should note the intense competition in the sportswear industry and Nike's share price decline.

8. $S&P Global(SPGI)$

The financial intelligence and analytics provider $S&P Global(SPGI)$ boasts a 9.8% average annual dividend growth over five years, though its dividend yield is just 0.76%.

With a PE of 53.7, it trades at a premium. But, its pivotal role in financial markets and data analysis, coupled with a strong economic moat, underpins its long-term success.

9. $Amgen(AMGN)$

The biotech giant Amgen has a 9.2% average annual dividend growth, offering a 2.72% dividend yield.

Its robust product pipeline and innovative therapies support future dividend hikes and share price appreciation. Fueled by its obesity drug pipeline, the stock trades at a PE of 47.4.

10. $AbbVie(ABBV)$

Despite aggressive acquisition strategies and the looming challenge of Humira's patent expiration, AbbVie, a biopharmaceutical company, has achieved a 7.69% average annual dividend growth over five years, with a 3.06% dividend yield.

Its diverse product line and robust clinical pipeline will continue to support dividend growth. However, with a PE of 51.3, near-term upside may be limited.