My Top Dividend Growth Stock to Buy Before 2027 and Hold for 20 Years -- and It Has Hiked Its Payout by 15%

Source Motley_fool

Key Points

  • Morgan Stanley's stock has averaged annual gains of nearly 19% over the past 15 years.

  • Its dividend has grown even faster over that time.

  • 10 stocks we like better than Morgan Stanley ›

As I grow older, I'm more interested in dividend-paying stocks, as I can see how dividends can supplement my Social Security income and help support me in the future. But dividend stocks are actually terrific for investors of any age. If your dividend payers are generating, say, $10,000 per year, you can always just plow that money back into your portfolio by buying more stock.

Coins stacked atop hundred-dollar bills.

Image source: Getty Images.

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One dividend payer I've recently noticed is financial services giant Morgan Stanley (NYSE: MS). Its dividend recently yielded a solid 2.4%, and it's been growing briskly -- as has the stock. Here's how the stock has grown over time:

Period

Average annual growth rate

Past year

13.86%

Past 3 years

38.67%

Past 5 years

15.71%

Past 10 years

18.71%

Past 15 years

18.77%

Data source: Morningstar.com, as of Nov. 13, 2026.

Those are impressive returns!

Now check out how robustly the stock's dividend has been growing:

Period

Average annual dividend growth rate

Past 5 years

10.44%

Past 10 years

19.12%

Past 15 years

23.25%

Data source: Calculations by author using data from Yahoo!Finance.

The most recent increase was a hefty 15% one.

Should you invest in Morgan Stanley?

Give this big company a closer look if you're seeking dividend income and/or stock-price appreciation. Here are a few tidbits about it:

  • Its business is growing: In its solid third quarter, revenue grew 11.5% year over year, with diluted earnings per share growing 8.2%.
  • It's expanding its footprint, moving into hundreds of thousands of square feet in Dallas.
  • It has been expanding its scope and now offers cryptocurrency ETFs -- ones with relatively low fees that could attract investors.

Morgan Stanley is high on my watch list, and when I have more dollars to invest, it may be added to my long-term portfolio. No one can know just how it will perform in the future, but it's positioned to keep growing for 20 years and beyond.

Should you buy stock in Morgan Stanley right now?

Before you buy stock in Morgan Stanley, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Morgan Stanley wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $338,083!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,021,163!*

Now, it’s worth noting Stock Advisor’s total average return is 830% — a market-crushing outperformance compared to 209% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.

See the 10 stocks »

*Stock Advisor returns as of November 14, 2026.

Selena Maranjian has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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