10 Dividends That Can See Double-Digit Growth for 5 Years or Longer

The most recent Amex quarterly payout of $0.39 per share and $1.56 annualized payout per share compares with $7.33 in earnings per share (EPS) in 2018, and it is only about 19% of the $8.13 EPS estimate for 2019 and about 17% of the $8.99 estimate for 2020. The company also has targeted 10% annual dividend hikes since it was allowed to raise its dividend back in 2012 after a five-year recessionary freeze. Unless there is a major earnings blow headed its way, Amex is likely to continue with 10% annual dividend hikes.

American Water Works

American Water Works Co. Inc. (NYSE: AWK) is one of the most defensive investments that can be found, as being a utility and selling water is never going away. The company has raised its dividend every year for the past decade, and the $2.00 annualized payout now compares to EPS estimates of $3.59 in 2019 and $3.90 in 2020. Its most recent dividend hike was by 9.9% rather than a true 10%, but American Water Works has a formal commitment of linking its dividend increases to EPS growth, with a target a payout ratio of 50% to 60% of its net income.

We recently evaluated this as a stock to own for the decade, but its shares have risen exponentially since that call was first made.


Corning Inc. (NYSE: GLW) is lumped in with technology companies because it makes screens for smartphones, TVs, monitors and so on, but Corning is a glass leader in many fields and is the world’s most recognized glass manufacturer. The company also has more than 150 years of operations. Corning has made steadfast efforts to return capital to shareholders of late, and the Investor Day presentation and a recently announced $5 billion stock buyback plan should offer great comfort.

In June, Corning’s management issued long-term outlooks for 2020 to 2023 for shareholder distributions of $8 billion to $10 billion. The fundamentals are annual dividend hikes of at least 10%, based on 12% to 15% compound annual EPS compounded annual revenue growth. It already has a 2.4% dividend yield, and the company has committed itself formally to keep making higher payouts.

Home Depot

A steady grower of revenue and income since the recession, Home Depot Inc. (NYSE: HD) has been able to avoid much of the retail apocalypse from Amazon and other online retailers. It also has hiked its dividends greatly in recent years.

The hike of the quarterly payout from $1.03 to $1.36 may not be expected to be seen again, but Home Depot has the ability to raise its dividend by 10% or more for the foreseeable future. That would be a normalization of the dividend growth that would be sustainable for years to come, rather than paying everything out and then dealing with a slowdown or recession with less dry powder in future years after its long-term debt has risen.

With $9.89 in EPS in 2018, the consensus earnings estimates are $10.12 per share for 2019 and $11.01 per share in 2020.

Lockheed Martin

Lockheed Martin Corp. (NYSE: LMT) dominates in the profitable defense sector and seems to have clear skies ahead as major governments around the globe spend ever more for defense and warfare capabilities. While it depends on U.S. government spending trends, international ally nations are a huge growth opportunity. The company already has close to a 2.4% dividend yield, but its history has been for dividend growth of 10% in recent years. The current $8.80 per share payout is only about half of its trailing earnings of $17.59 per share in 2018, and EPS estimates are $20.57 in 2019 and $24.98 in 2020.


Sherwin-Williams Co. (NYSE: SHW) is a steady growth engine in paints and coatings, and the only debate about the company that seems credible is whether it should have been allowed to acquire Valspar. The combined company is now worth $42 billion, and the $4.52 annualized dividend payout compares with $18.53 EPS in 2018. Consensus estimates of $20.95 EPS in 2019 and $24.16 EPS leave ample room for that dividend growth to continue.