Dividend growth stocks are a popular choice among investors looking to build wealth over time. These stocks consistently increase cash payouts to shareholders, providing a growing income stream that can be reinvested and compounded. The best dividend growth stocks not only raise payouts but also generate consistent earnings growth, leading to steadily rising stock prices.
This strategy of combining escalating dividend income with capital appreciation is a powerful way to build long-lasting wealth. Two top dividend growth stocks to consider adding to your portfolio are Abbott Laboratories (NYSE: ABT) and Target (NYSE: TGT).
Analysts forecast that Target will grow earnings by 11.6% and revenue by 3.7% in the next fiscal year. With enhancements in digital fulfillment capabilities and merchandising mix, Target is expected to continue delivering reliable dividend increases.
Target offers an above-average dividend yield and growth rate at an attractive price point.
Before investing in Abbott Laboratories, it’s worth noting that the Motley Fool Stock Advisor team has identified 10 stocks they believe could produce significant returns in the coming years, with Abbott Laboratories not being one of them. The Stock Advisor service has outperformed the S&P 500 since 2002, providing investors with a blueprint for success.
Both Abbott Laboratories and Target present opportunities for investors seeking dividend growth stocks with the potential for long-term wealth accumulation.