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Posted September 17, 2025 at 10:45 am
Dividend growth stocks form a cornerstone of long-term wealth building, offering investors a dual benefit: dependable income streams and capital appreciation potential. These investments target companies that demonstrate commitment to shareholders by regularly increasing their dividend payments each year, signaling robust financial health, stable operations, and strong management practices.
The power of reinvesting these growing dividends creates a compounding effect that can significantly enhance total returns over time. Meanwhile, the rising income stream helps investors stay ahead of inflation by preserving and increasing their purchasing power.
Companies that consistently grow their dividends tend to exhibit lower volatility than non-dividend-paying stocks, providing a cushion during market downturns. These businesses are typically established industry leaders with durable competitive advantages, predictable cash flows, and disciplined capital allocation strategies.
For investors seeking both current income and future growth, dividend growth stocks offer an optimal middle ground. They avoid the limitations of high-yield investments that may lack growth prospects while also providing immediate returns that pure growth stocks cannot deliver.
This balanced investment approach makes dividend growth stocks particularly valuable for retirement planning and for investors who desire steady, escalating income alongside long-term capital appreciation. The strategy successfully combines the stability of income-oriented investments with the wealth-building capabilities of growth-focused strategies.
Here are dividend growth stocks for September of 2025.
| Ticker | Company Name | Price | Market Cap ($mil) | PE Ratio | Price/ Sales | Relative Strength | Price/ Book | Price/ Cash Flow | Dividend Yield |
|---|---|---|---|---|---|---|---|---|---|
| KNSL | KINSALE CAPITAL GROUP INC | $424.24 | $9,885 | 22.2 | 5.9 | 42 | 5.7 | 10.1 | 0.2% |
| TOL | TOLL BROTHERS INC | $141.63 | $13,651 | 10.4 | 1.3 | 45 | 1.7 | 9.3 | 0.7% |
| PHM | PULTEGROUP INC | $134.84 | $26,604 | 10.1 | 1.5 | 47 | 2.1 | 9.4 | 0.6% |
| NVO | NOVO NORDISK A/S (ADR) | $55.62 | $189,267 | 14.2 | 3.9 | 16 | 9.3 | 9.5 | 3.4% |
| MRK | MERCK & CO INC | $81.02 | $202,370 | 12.5 | 3.2 | 27 | 4.1 | 9.6 | 4.0% |
| CMCSA | COMCAST CORP | $32.62 | $120,440 | 5.4 | 1.0 | 36 | 1.3 | 3.1 | 3.9% |
| NEU | NEWMARKET CORP | $831.20 | $7,810 | 16.5 | 2.8 | 82 | 4.9 | 13.0 | 1.3% |
| MLI | MUELLER INDUSTRIES INC | $98.82 | $10,939 | 15.7 | 2.7 | 80 | 3.8 | 14.1 | 0.9% |
| GWW | WW GRAINGER INC | $1,012.62 | $48,436 | 25.5 | 2.8 | 56 | 13.2 | 21.5 | 0.8% |
| WTFC | WINTRUST FINANCIAL CORP | $133.66 | $8,949 | 12.6 | 3.5 | 74 | 1.4 | 10.8 | 1.4% |
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Originally Posted September 16, 2025 – Dividend Growth Stocks – September 2025
Information posted on IBKR Campus that is provided by third-parties does NOT constitute a recommendation that you should contract for the services of that third party. Third-party participants who contribute to IBKR Campus are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.
This material is from Validea Capital Management and is being posted with its permission. The views expressed in this material are solely those of the author and/or Validea Capital Management and Interactive Brokers is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to buy or sell any security. It should not be construed as research or investment advice or a recommendation to buy, sell or hold any security or commodity. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
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