Three companies have stood out for their powerful dividend hikes – Lowe’s, A. O. Smith, and Automatic Data Processing. Lowe’s, a Dividend King, has increased its dividend for over 60 years, outpacing inflation. A. O. Smith, with over 30 years of dividend growth, has a payout ratio of 37%. Automatic Data Processing hit Dividend King status with 50 years of annual dividend increases and a 10% payout hike.

Lowe’s recent dividend growth outpaced the 18% U.S. inflation since 2021, with a 4% increase in 2025. Acquisitions are expected to boost future dividends. Analysts forecast 8% growth next year, after the company acquired Artisan Design Group and Foundation Building Materials.

A. O. Smith has raised dividends by 1,600% since 2000, with a payout ratio of 37%. The company bought back 3.8 million shares in 2025 and plans to repurchase more. Earnings growth remains solid amid tariff uncertainty, with a projected increase of 2% over 2024.

Automatic Data Processing saw a 10% dividend increase, surpassing 3% inflation. The company has raised its payout by 2,100% since 2000. With a 60% payout ratio, higher than peers, share buybacks support future dividend growth. The stock yields 2.2% and shows strong growth prospects.

Investors seeking dividend growth opportunities may find Lowe’s, A. O. Smith, and Automatic Data Processing appealing. These companies have a track record of consistent dividend increases that outpace inflation, strong payout ratios, and potential for future growth.

Read more at Yahoo Finance: 3 Dividend Champions That Could Double Their Dividends From Here