Double-digit dividend growing stocks is among our most-important themes for 2018, and stretches across industries, asserts John Eade, analyst with Argus Research, a leading independent Wall Street research firm.

We think companies that raise their dividends consistently at a double-digit rate are sending off three important signals amid all the recent market volatility: 1) the company’s balance sheet is strong enough to pay a dividend; 2) management is focused on providing shareholder returns; and 3) management is confident enough in the near-term outlook to raise the payout aggressively.

This third factor is especially important in the context of the recent market volatility stemming from uncertainty over Fed activity and Trump trade talks, tweets and tariffs.

Here are 10 stocks that meet our double-digit dividend test and are on the Argus BUY List. They are also core holdings in our Dividend Growth Separately Managed Account.

  • Illinois Tool Works (ITW): This blue-chip Industrial company has the longest record of consecutive dividend increases in the portfolio -- at 54. The current yield is 2.2%.
  • Abbvie (ABBV): This Big Pharma company, a spin-off from Abbott Labs, has increased the dividend for 45 consecutive years. Current yield is 4%.
  • VF Corp. (VFC): We recently added coverage of this Apparel company, which has also raised its dividend for 45 consecutive years.
  • Lockheed Martin Inc. (LMT): Management of this large-cap Aerospace & Defense company recently signaled clear skies ahead by boosting the dividend 10%. The stock now yields 2.6%.
  • Home Depot (HD): In March, HD boosted its payout 16%. The current yield on this blue-chip home improvement retailer is 2.1%.
  • Oneok (OKE): This MLP has the highest yield of the stocks in the portfolio (at 4.2%) and has raised the dividend for 15 consecutive years. Management projects annual dividend increases of 9%-11% through 2021.
  • NextEra Energy (NEE): Most Utilities pay dividends, but few, other than NextEra, raise them at a double-digit rate. The current yield is 2.5%.
  • Microsoft (MSFT): More and more Tech companies are paying dividends. Microsoft has grown its dividend each year for the past 14 years.
  • Amgen (AMGN): This Biotech recently boosted its dividend 15%. The current yield is 2.7%.
  • Estee Lauder (EL): This Consumer Staples company’s yield may be low (at 1.1%) but management’s five-year track record of dividend growth is 16% and average annual returns over the past five years have been 19%.

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