Five of the best dividend growth stocks to buy in June 2024

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While semiconductors like Nvidia (NVDA) hogging the headlines this summer as most traders seek to profit from the artificial intelligence (AI) revolution in chips, it may be best for most retail investors to hop off the bandwagon and focus on a tried-and-true strategy for above average returns.

Dividend growth investing gives investors a chance to gain both income and share price growth. High dividend growth rates are often coupled with large increases in capital gains. Standard & Poor's claims that dividends are behind 44% of long-term S&P 500 gains. This article screens for stocks that have average revenue growth above 10% and payout ratios below 50%.

systems and installation in the United States, as well as plumbing, electrical, piping services. The firm has a large number of subsidiaries. work is quite steady, and the company’s expanding footprint has allowed it to pay dividends for 18 consecutive years and raise that dividend for the last 11. Comfort Systems offers the smallest yield of any stock on this list at 0.37%, but that comes with a 22.6% growth rate. Likewise, the scant payout ratio of just 9% means that management will have now problem raising its dividend over the next half decade. The broader business looks stable as well.

 

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