5 Dividend Growth Stocks to Boost Your Portfolio in 2025

Core Viewpoint - The stock market is experiencing volatility, prompting investors to consider dividend investing as a strategy to protect their portfolios going into 2025 [1]. Group 1: Dividend Growth Strategy - Selecting stocks with a history of dividend growth can lead to a healthier portfolio with greater capital appreciation compared to simply choosing high-yield dividend stocks [2]. - Stocks with strong dividend growth are typically from mature companies, providing a hedge against market volatility and economic uncertainty [3]. - These stocks exhibit superior fundamentals, including sustainable business models, profitability, rising cash flows, good liquidity, and strong balance sheets, making them promising long-term investments [4]. Group 2: Selection Criteria - Stocks must have a 5-Year Historical Dividend Growth greater than zero, indicating a solid dividend growth history [5]. - A 5-Year Historical Sales Growth greater than zero is required, reflecting a strong record of sales growth [6]. - A 5-Year Historical EPS Growth greater than zero is necessary, along with a Next 3-5 Year EPS Growth Rate greater than zero, indicating expected earnings growth to sustain dividend payments [7]. - Stocks should have a Price/Cash Flow ratio less than the industry average, suggesting they are undervalued [7]. - A 52-Week Price Change greater than the S&P 500 ensures the stock has appreciated more than the broader market [8]. - Stocks should have a Top Zacks Rank of 1 (Strong Buy) or 2 (Buy) to indicate potential outperformance [8]. - A Growth Score of B or better is preferred, as research shows these stocks offer the best upside potential when combined with a strong Zacks Rank [8]. Group 3: Selected Stocks - InterDigital, Inc. (IDCC) is a pioneer in advanced mobile technologies with a Zacks Rank 1 and a Growth Score of B [10][11]. - Armstrong World (AWI) is a leading global producer of ceiling systems with a Zacks Rank 2 and a Growth Score of B, and an estimated earnings growth rate of 10.64% for 2025 [12][18]. - Charles River Associates (CRAI) is a global consulting firm with a Zacks Rank 2 and a Growth Score of A, and an expected earnings growth rate of 5.21% for 2025 [13][19]. - Fox Corporation (FOX) produces and distributes news and entertainment content, holding a Zacks Rank 2 and a Growth Score of B, with an expected earnings growth rate of 13.99% for the fiscal year ending June 2025 [14][20]. - Gildan Activewear Inc. (GLD) manufactures premium-quality activewear, also with a Zacks Rank 2 and a Growth Score of B, and an estimated earnings growth rate of 13.80% for 2025 [15][21].