Analysis: Recommendations for elite dividend growth stocks outperforming S&P 500, offering long-term wealth and value

From Nasdaq: 2025-05-18 08:15:00

Dividend growth investing offers long-term wealth through companies that pay you to own them. Elite dividend growth stocks with high growth rates and low payout ratios outperform the S&P 500, signaling strong businesses with competitive advantages.

American Express (NYSE: AXP) offers a 1.09% dividend yield with a 20.4% payout ratio and 10.8% annual dividend growth. Trading at a discount to the S&P 500, it provides value with double-digit dividend growth and exposure to digital payments.

Visa (NYSE: V) boasts a 0.65% dividend yield, 22.3% payout ratio, and 17.4% annual dividend growth. Despite trading at a premium, Visa’s consistent growth and profitability in digital payments justify its valuation.

Costco (NASDAQ: COST) delivers a 0.51% dividend yield, 27% payout ratio, and 10.1% annual dividend growth. While trading at a premium, Costco’s operational excellence and market share gains offer stability in the retail sector.

Target (NYSE: TGT) offers a 4.5% dividend yield, 50.1% payout ratio, and 8% annual dividend growth. With a significant discount to the market, Target combines income, growth, and effective merchandising strategies for investors.

S&P Global (NYSE: SPGI) provides a 0.73% dividend yield, 29% payout ratio, and 11.9% annual dividend growth. Trading at a premium, S&P Global’s market-leading positions in financial intelligence justify its valuation.

Nvidia (NASDAQ: NVDA) offers a 0.03% dividend yield, 1.16% payout ratio, and 16.7% annual dividend growth. Despite a premium valuation, Nvidia’s dominance in AI computing and graphics technology positions it for future growth.

ASML (NASDAQ: ASML) boasts a 1.12% dividend yield, 28.5% payout ratio, and exceptional 24.7% annual dividend growth. Trading at a premium, ASML’s technological monopoly in semiconductor equipment drives its valuation.

Consider the best stocks to buy now with Motley Fool Stock Advisor’s top picks for potential high returns. Past recommendations like Netflix and Nvidia have shown significant growth, highlighting the potential for long-term success in the market.



Read more at Nasdaq: 7 No-Brainer Dividend Growth Stocks to Buy Right Now