3 Companies With a Strong History of Dividend Growth

Dividends come with many great perks, with the payouts essentially reflecting a form of ‘payday’ in the market.

And several stocks with a strong history of increasing payouts – Broadcom AVGO, ExxonMobil XOM, and Caterpillar CAT – are strong options for those looking to reap income.

Caterpillar Benefits from Data Center Buildout

Caterpillar has notably become a big beneficiary amid the AI infrastructure buildout, enjoying strong demand for its power products used in data center applications, primarily large reciprocating engines.

The outsized sales growth has helped shares outperform over the last year, with Caterpillar’s shareholder-friendly nature also a major positive, sporting a 7.8% five-year annualized dividend growth rate while also being a Dividend Aristocrat.

Exxon Mobil Outperforms

Exxon Mobil shares have delivered a strong performance in 2026 on the back of higher oil prices stemming from geopolitical concerns, outperforming the S&P 500 by a wide margin. The company’s strong cash-generating abilities have made it a favorite among many income-focused investors.

Like CAT, XOM is a member of the elite Dividend Aristocrat group, carrying a respectable 3.9% five-year annualized dividend growth rate. Shares currently yield a solid 2.6% annually.

Broadcom Generates Huge Cash

Broadcom has quickly entered the AI race, evolving a broad portfolio of technologies to extend its leadership in enabling next-generation AI infrastructure. Shares currently yield 0.7% annually, with the company sporting a shareholder-friendly 13.1% five-year annualized dividend growth rate.

The stock has long been a favorite among those seeking tech exposure paired with paydays, with the company’s strong cash-generating abilities allowing it to consistently reward shareholders over its history.

Bottom Line

Investors love dividends, as they provide a nice buffer against the impact of drawdowns in other positions and provide an income stream. All three stocks above – Caterpillar CAT, Broadcom AVGO, and ExxonMobil XOM – reflect strong picks for income-focused investors, with each having a strong history of increasingly rewarding shareholders.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research