How to Screen for Dividend Growth Stocks in 2025
September 29, 2025
TL;DR: The best way to find dividend growth stocks is to look for companies with a consistent record of raising dividends (at least 5–10 years), backed by solid fundamentals such as payout ratio, earnings growth, and revenue growth. Key metrics include dividend growth rate, payout ratio, and leverage. Tools like Koyfin, Finviz, and Zacks allow investors to combine these filters to build a reliable shortlist of dividend growers.
Introduction
Dividend growth stocks are companies with a track record of increasing dividends year after year. Rising payouts signal profitability and disciplined financial management, since only businesses with steady earnings and cash flow can sustain them.
For investors, this means two things: income that grows over time and ownership in companies resilient enough to keep paying more in the future.
This article explains how to screen for dividend growth stocks, which metrics to focus on, and which tools can help.
How to Screen for Dividend Growth Stocks
When screening, focus on categories that show both dividend sustainability and company strength.
Type | Metric | Why It Matters |
Size & Sector | Sector | Dividend growth is most common in Consumer Staples, Healthcare, Industrials, and Financials. Avoid comparing across sectors with very different payout standards |
Market Cap | Larger companies usually have steadier earnings and more reliable dividend policies than small caps | |
Dividend Track Record | Dividend Increases | A long record signals stability and commitment to shareholders |
Dividend Per Share CAGR (5Y) | Indicates meaningful, compounding income growth | |
Sustainability | Payout Ratio (LTM) | Indicates how much profit is returned to shareholders vs. reinvested; lower ratios leave room for growth |
Fundamentals | EPS CAGR (5Y) | Confirms dividends are supported by rising profits |
Revenue CAGR (5Y) | Expanding sales make dividend growth more durable | |
Balance Sheet | Total Debt/Equity (LTM) | Measures leverage and financial resilience during downturns |
Dividend Yield | Dividend Yield (Indicated) | Balances current income with growth potential; extreme yields may signal risk |
Best Screeners for Dividend Growth Stocks
Here are some widely used tools investors rely on:
- Koyfin – Modern and user-friendly interface; 500+ customizable metrics including dividend history, payout ratios, and growth rates. Ideal for dividend growth investors because it combines screening with watchlists, advanced charting, news, alerts, and portfolio tracking, making it easy to move from building a screen to analyzing and monitoring dividend growers in one place.
- Finviz – Free and straightforward; filters by yield, payout ratio, and earnings growth.
- Zacks – Focuses on earnings-driven dividend safety, supported by proprietary ratings.
- Morningstar – Provides analyst commentary and dividend durability scores.
Sample Screen You Could Run
Here’s an example of how you might set up a dividend growth screen in Koyfin. These filters highlight companies with consistent dividend growth backed by solid fundamentals. You can tweak the numbers depending on how conservative or aggressive you want to be:
- Sector: Staples, Healthcare, Industrials.
- Market Cap: ≥ $2B
- Consecutive Annual Increases: ≥ 5 years
- Dividend Per Share CAGR, 5Y FY: ≥ 5% annually
- Payout Ratio, LTM: ≤ 60%
- Diluted EPS Before Extra, CAGR, 5Y FY: ≥ 5%
- Total Revenues CAGR, 5Y FY: ≥ 3%.
- Total Debt/Equity, LTM: ≤ 200% (2.0x)/li>
We built a screener with these exact filters, so you can instantly see the full list of qualifying dividend growth stocks.
View Dividend Growth Screener in Koyfin
What to Do After Running the Screen
Your screener will generate a list of companies that pass these filters. The next step is to refine it into a shortlist:
- Sort by Dividend Yield (Indicated) – High yields (>5%) may signal risk, while low yields (<1.5%) can still be attractive if paired with strong growth. You can also use Dividend Yield NTM (next-twelve-months), which uses Wall Street dividend estimates to calculate the dividend yield.
- Sort by Dividend Growth (5Y CAGR) – Shows which companies have been raising payouts the fastest. Higher growth can offset a lower yield.
- Check payout ratios – A lower ratio means more room for future dividend increases.
- Use the Dividend Snapshot – In Koyfin, this view brings together yield, payout ratio, streak, growth history, and payment schedule so you can quickly see if a company fits your strategy.
Open Dividend Snapshot in Koyfin
From here, group companies into profiles:
1. Low dividend yield / high growth
- What it means: Yield is usually below 2%, but dividends are compounding at 10%+ annually.
- Why it matters: Even with a modest starting yield, income can grow much faster than inflation.
- Who it’s for: Long-term investors who prioritize future income growth over immediate yield.
View Low Yield / High Growth Screener in Koyfin
2. Moderate dividend yield / moderate growth
- What it means: Yield in the 1.7–4.5% range, with dividends growing 4–12% annually.
- Why it matters: Balances current income with steady growth.
- Who it’s for: Investors seeking stable, long-term holdings that provide both income and growth.
View Moderate Yield / Moderate Growth Screener in Koyfin
3. High dividend yield / lower growth
- What it means: Yield is 4% or higher, with dividend growth typically under 3%.
- Why it matters: Delivers higher income now, but requires careful review since high yields can signal risk.
- Who it’s for: Income-focused investors, but requires extra scrutiny to confirm dividends are sustainable.
(Less common in Staples, Healthcare, and Industrials, so we ran a separate screen in Utilities, Telecom, REITs, and Tobacco.)
View High Yield / Low Growth Screener in Koyfin
Risks & Considerations
- High yields can be misleading: A very high yield may signal financial stress.
- Sector differences: Utilities and REITs have higher dividend yields and payout ratios but can still be sustainable.
- History isn’t a guarantee: A long streak doesn’t ensure future dividend increases. Look out for any signals that the business is weakening.
- Sector concentration: Many dividend growers cluster in a few industries. Diversify across sectors to reduce risk.
FAQ
- What’s a good dividend growth rate to screen for?
5–10% annualized over 5 years is considered strong.
- What’s better, high yield or dividend growth?
A moderate yield with consistent growth usually outperforms very high yielders in the long run.
- How do I know if a dividend is safe?
Check payout ratio, cash flow coverage, earnings stability, and debt levels. Read company transcripts to understand how management thinks about dividends as part of their capital allocation strategy.
- How long should I track a dividend growth stock before investing?
At least over a full market cycle (5–10 years) to confirm consistency.
Editorial note
Our insights are derived solely from historical information and analyst predictions, employing an impartial approach. Please note that our articles do not serve as financial guidance.
