3 Dividend Growth Stocks You Can Buy and Forget About

Core Viewpoint - The article highlights three stocks—Walmart, Eli Lilly, and Microsoft—that have consistently increased their dividends and are expected to continue doing so, making them attractive long-term investment options. Group 1: Walmart - Walmart's current dividend yield is 0.9%, below the S&P 500 average of 1.2%, but its stock price has increased over 120% in the past five years [4] - The company raised its dividend by 13% earlier this year, marking the 52nd consecutive year of dividend increases, showcasing its strong commitment to rewarding shareholders [6] - Walmart's business model attracts both low and high-income shoppers, benefiting from strong grocery operations and growth opportunities in e-commerce and advertising [7] Group 2: Eli Lilly - Eli Lilly's dividend yield is 0.8%, with a remarkable stock price increase of around 400% over the past five years, attributed to the success of its GLP-1 drugs [9] - The company announced a 15% dividend increase last December, marking the seventh consecutive year of significant dividend growth [9] - Eli Lilly generated over $53 billion in sales over the past 12 months, a substantial increase from less than $30 billion a few years ago, indicating strong growth potential [10] Group 3: Microsoft - Microsoft has the lowest yield on the list at less than 0.7%, but its stock has risen by around 150% in the past five years [11] - The company has been increasing its dividend since the early 2000s, having more than doubled its payout in the last decade, with expectations for continued growth driven by advancements in artificial intelligence [12] - Over the last 12 months, Microsoft generated $71.6 billion in free cash flow, with dividend payments totaling $24.1 billion, indicating a strong financial position for future dividend increases [13]