Top 5 Dividend Growth Stocks for 2020

The stock market had a pretty fantastic year in 2019 and it was one of the best years for the S&P 500. 2020 continue this trend, and investors who hold back waiting for a downturn may miss out on future growth and dividends. There are still plenty of great opportunities to be found in the stock market, all it takes is a little bit of research work and discipline. Here are 5 dividend growth stocks for 2020.

Dividend growth stocks are a nice choice for investors that are interested in receiving a steady stream of income for their portfolio that will continue to grow as time goes on. They are companies that have a reliable record of increasing their dividend payouts per share every year.

5 Dividend Growth Stocks for 2020

MSFT – Microsoft Corporation

You are most likely effectively acquainted with Microsoft, as it’s a huge organization with one of the biggest market capitalization’s. You may even be perusing this article on one of their pervasive PCs or convenient gadgets. Microsoft is an organization with extraordinary administration, an assorted business portfolio, and an exceptionally decent quarterly profit payout that has been consistently expanding. Their cloud business, specifically, is a captivating possibility for 2020, especially since they as of late won a gigantic $10-billion-dollar contract with the Department of Defense. Most importantly Microsoft is an extraordinary organization with immense potential in 2020 and past.

MRK – Merck & Co., Inc.

Another extraordinary dividend growth stock to look into for 2020 is Merck & Company Inc. This is an enormous global pharmaceutical organization with a decent profit yield. It is the ideal case of an organization that not just rewards investors with predictable payouts and profit development yet in addition strives to make the world a better place. Their pharmaceutical products treat a number of serious medical conditions like cancer, cardiovascular disease, and asthma. They also have a large portion of their business in vaccines. Merck has a lot of positive momentum going into 2020 along with some truly fascinating business initiatives, which absolutely should put it on your radar.

ABBV – AbbVie Inc.

The AbbVie dividend has been paid continuously since 1924 and increased for 47 consecutive years; qualifying the company as a Dividend Aristocrat. Technically AbbVie has only existed since 2013 when it was spun off by Abbott Labs. It’s dividend yield of 5.36% and 20% dividend growth rate the last 5 years makes this a very attractive stock to buy for dividend growth investors. The payout ratio of 52.86% is high, but not so high that the company can’t pay their dividends in the future.

JNJ – Johnson & Johnson

It’s likely that you are using some of the products that this dividend growth company manufactures on a daily basis. Johnson & Johnson is a blue-chip drug manufacturer that has actually been through a tough couple of years. Most recently, they made headlines for accusations that their baby powder was contaminated with asbestos. That might not be the type of news that entices you to buy, but it’s looking more and more like JNJ is poised for a strong rebound next year. You simply can’t ignore the incredibly solid balance sheet and consistent dividend growth that this pharma giant has to offer. The stock has been beaten up, but the technicals are now pointing towards a bullish trend in 2020. This is a company that any dividend growth investor would love to have in their portfolio.

The Walt Disney Company – DIS

The last dividend growth stock for 2020 that we will look at is The Walt Disney Company. The mouse has been strong in 2019 and will be looking to continue their positive momentum into 2020. They have a diverse business model, a strong balance sheet, and recently launched a new streaming video service called Disney+ which is capturing a lot of valuable market share from other companies in the streaming space such as Netflix. With some of the most popular movie franchises in the world like Frozen and Star Wars, Disney will likely continue to dominate the box office for years to come. It will be interesting to see their next earnings report and just how great the Disney+ numbers are, so make sure you keep an eye on Disney next year.

That is 5 dividend growth stocks for 2020 that we believe will continue to pay and grow their dividends.