3 Dividend Growth Stocks That Have Doubled Their Payouts in 5 Years
Key Points
The stocks listed here may not offer the highest yields, but they have been very generous in raising their payouts in recent years.
Their payout ratios remain modest, and their dividend payments may continue to increase at high rates in the future.
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The best dividend stocks are often the ones that raise their payouts at high rates. While their yields may not be high today, businesses that are willing and able to grow their payouts significantly could reward long-term investors with much higher dividend payments in the future.
Three stocks that have doubled their payouts in just the past five years include Eli Lilly (NYSE:LLY), Tractor Supply Company (NASDAQ:TSCO), and American Express (NYSE:AXP). Here's a look at why these dividend stocks can make for excellent pillars to build a portfolio around.
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Eli Lilly
Eli Lilly may just be one of the most underrated dividend stocks to own. Investors may overlook it because its yield is fairly low at just 0.6%, which is far below the S&P 500 average of around 1.1%.
But in recent years, Eli Lilly has been one of the hottest growth stocks to own in the healthcare sector. It's the only healthcare company in the trillion-dollar club. The tremendous growth its GLP-1 drugs have generated for the business has made it a go-to option for growth investors seeking a safe investment to hang on to. And with the stock trading at 24 times its estimated future profits (which are based on analyst expectations), it's not a terribly expensive-looking stock when factoring in its growth opportunities.
The company's current quarterly dividend of $1.73 is just over twice what it was paying its shareholders back in 2021, when the dividend was $0.85. Due to the company's tremendous growth over the years, there's still room for even more increases, as its payout ratio is modest at just 22%.
Tractor Supply Company
Investors can collect a higher payout from Tractor Supply Company, as its yield is up to 2.9% right now. The retail stock has been struggling this year, declining 33% thus far in 2026, as challenging economic conditions are weighing on its business. The company, which sells a wide range of products for rural customers, however, remains relatively resilient, posting $1 billion in profit over the past four quarters, on revenue of around $15.8 billion.
The stock currently pays investors $0.24 per quarter. It underwent a 5-for-1 stock split in 2024, which means the $0.52 it was paying in 2021 would be $0.104 on a split-adjusted basis. Tractor Supply's dividend, therefore, has increased by 131% since then. The company's payout ratio is around 50%, which is still very manageable and leaves room for it to increase the dividend in future years, even without strong growth.
Although it's been facing challenges this year, the business remains in strong financial shape, and with a forward price-to-earnings (P/E) multiple of only 14, the stock is an attractive-looking buy right now, not only for its potential upside but also for all the dividend income it may be able to generate for investors.
American Express
Credit card company American Express is another top dividend growth stock that can make for a solid long-term investment. The business has done well this year, even while others have struggled amid inflation.
When it last reported earnings in July, the company raised its guidance for the year, projecting 10% growth on the top line. Its cards appeal to affluent customers and can thus make this a fairly resilient business to invest in.
Its current dividend is $0.95 per quarter, which is 121% higher than the $0.43 it was paying shareholders five years ago. And like Eli Lilly, its payout ratio is also incredibly low at around 20%, giving investors no concerns about its current dividend payments and confidence that there may be more rate hikes to come.
Trading at a forward P/E of 15, this is another modestly priced stock that may be worth buying on the dip, as shares of American Express are down 16% this year.
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American Express is an advertising partner of Motley Fool Money. David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends American Express, Eli Lilly, and Tractor Supply. The Motley Fool recommends the following options: short October 2026 $35 calls on Tractor Supply. The Motley Fool has a disclosure policy.
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