Getting paid to own stocks is always appealing. Watching those payments grow year after year can be even better. That’s the attraction of dividend growth investing. When you buy shares in a company that can steadily increase its payouts, you have an opportunity to build a growing income stream without continually adding money to your account.
Some of the companies paying you more to hold their stock include McDonald’s (NYSE: MCD), Philip Morris International (NYSE: PM), and Altria Group (NYSE: MO). Each just announced a dividend increase, giving shareholders a bigger payment for every share they own.
For someone planning for retirement, that kind of progress can matter. A rising income stream can help offset increasing living costs, while reinvesting dividends can purchase additional shares that generate payments of their own.
Dividend Growth Stocks: McDonald’s Continues to Look Tasty
The restaurant giant increased its quarterly dividend to $1.93 from $1.86 per share. Its new annualized payout is $7.72, with the next payment scheduled for Dec. 15, 2026, for shareholders of record on Dec. 1.
This also marks its 50th consecutive year of dividend increases, qualifying McDonald’s as a Dividend King. Think about what that record represents. The company has continued raising its dividend through recessions, changing consumer habits, and periods of considerable economic uncertainty.
For an investor holding 100 shares, the new rate translates into $772 in annual dividends, compared with $744 previously. An extra $28 may not sound life-changing. But dividend growth investing is built around accumulating those increases over time. The appeal is a business that keeps finding room to pay shareholders more.
Dividend Growth Stocks: Philip Morris Shows Why It Pays to Be Defensive
Philip Morris raised its dividend to $1.60 per share from $1.47, bringing its annualized payout to $6.40. The payment is scheduled for Oct. 26, 2026.
According to the company’s announcement, Philip Morris has increased its annual dividend every year since becoming public in 2008. Its cumulative increase of 248% demonstrates how a series of raises can substantially change the income an investment produces.
The key question for prospective buyers is whether the business can continue supporting that progress. One unusually strong increase is encouraging, but investors should avoid assuming an 8.8% growth rate will repeat indefinitely.
Dividend Growth Stocks: Altria is Dividend Royalty
Altria raised its dividend to $1.11 per share from $1.06. That puts its annualized dividend at $4.44. The payment is scheduled for Oct. 9, 2026, for shareholders of record Sept. 15. Altria says this represents its 61st dividend increase in 57 years. It also targets annual dividend growth in the mid-single digits through 2028, although that remains a goal rather than a guarantee.
Before Buying Any Of These Stocks, Look Beyond the Announcement
Check how much of the company’s earnings and free cash flow goes toward dividends. A business needs enough cash left over to invest, service debt, and handle difficult periods. An attractive payout becomes less attractive if maintaining it strains the company’s finances.
Price matters, too. A rising yield can reflect a falling stock price, and dividend income may not offset capital losses. Likewise, even an excellent dividend grower can deliver disappointing returns if purchased at an excessive valuation.
Diversification also deserves attention. Owning both Philip Morris and Altria creates overlapping tobacco exposure; adding more tickers does not always add much variety.
Buying dividend growth stocks works best as a patient approach to business ownership. Look for sustainable payments, room for future increases, and a reasonable entry price. Over time, a collection of companies that can consistently afford to give shareholders a raise can help turn an investment portfolio into a more productive source of income.
