Do These Stocks Really Grow Dividends and Share Prices Together?
"The Power of Dividend Growth Investing"
 |
| < JP Morgan Dividend Story > |
1. A Realistic Investor Story
Mr. Park, a 40-something office worker, has been feeling lost about investing lately.
Retirement is creeping closer, and the stock market keeps swinging unpredictably.
“Interest rates are too low, and high-yield stocks don’t seem to grow… What’s left?”
That’s when a colleague casually said:
“There are stocks that grow dividends and share prices at the same time.”
2. The Problem with Yield vs Growth
In uncertain times—like now—balancing cash flow with capital growth is tricky.
Many investors get drawn to high dividend yields,
only to realize later that the stock price kept dropping.
So the question is:
Can you have both income and appreciation in one investment?
3. The Answer Lies in Dividend Growth Stocks
The answer is: dividend growth stocks.
These aren’t just companies with decent dividend yields.
They are known for increasing their dividends year after year,
while also delivering long-term capital appreciation.
Some of the best-known examples include:
- Johnson & Johnson (JNJ)
- Microsoft (MSFT)
- Lowe’s (LOW)
- PepsiCo (PEP)
- ADP (Automatic Data Processing)
4. The Data Behind the Strategy
▶ 5-Year Dividend CAGR (Compound Annual Growth Rate)
 |
| < 5-Year Dividend CAGR > |
| Stock | Dividend Yield | 5Y Dividend CAGR | Dividend Increase Streak |
|---|---|---|---|
| JNJ | 3.1% | 6% | 61 consecutive years |
| MSFT | 0.8% | 10% | 20+ years |
| LOW | 2.0% | 17% | 50+ years |
| PEP | 2.9% | 7% | 52 consecutive years |
| ADP | 2.1% | 12% | 49 consecutive years |
These aren’t just high yielders — they are reliable dividend growers with long-term consistency.
5. Take Action Based on Long-Term Thinking
Do you want income and growth?
Then consider adding dividend growth stocks to your long-term portfolio.
With DRIP (Dividend Reinvestment Plan) enabled,
you’ll be amazed by the compounding power in 10 years.
Coming next:
How to Build a Dividend Growth ETF Portfolio in 2025