3 Underrated Dividend Growth Stocks to Buy and Hold for Years

Core Viewpoint - Focusing solely on high dividend yields can lead to overlooking strong investment opportunities with lower yields but significant dividend growth potential [1] Group 1: Eli Lilly - Eli Lilly's sales increased from $28.5 billion in 2022 to over $45 billion in the past year [4] - The company offers a low yield of 0.8%, attributed to a stock price increase of over 370% in five years [5] - Eli Lilly has raised its dividend by an average of 15% annually for seven years, with a current quarterly dividend of $1.50, up from $0.74 in 2020 [6][7] Group 2: TJX Companies - TJX Companies provides a dividend yield of 1.4%, slightly above the S&P 500 average of 1.2% [8] - The company's revenue for the first quarter of fiscal 2026 rose by 5% year-over-year, totaling $13.1 billion [9] - TJX has increased its dividend by 13% this year, marking the 28th increase in 29 years, with an average annual increase of 20% [10][11] Group 3: American Express - American Express has a modest dividend yield of 1%, with revenue net of interest expense reaching nearly $17 billion, a 7% year-over-year increase [12] - The company raised its quarterly dividend by 17% in March, with the current dividend at $0.82, which is 91% higher than the $0.43 paid five years ago, reflecting a compounded annual growth rate of 13.8% [13][14]