Dividend Powerhouses Outshine S&P 500 Index Over Five-Year Period

A recent analysis of S&P 500 companies found that 12 out of 15 with the highest dividend growth rates over the past five years outperformed the index itself.

The study, conducted by MarketWatch, looked at 273 S&P 500 companies with a dividend yield of at least 1% five years ago and ranked them by their average annual dividend growth rate.

The top 15 companies included Ares Management, Goldman Sachs Group, Wells Fargo, EOG Resources, Diamondback Energy, SLB, Darden Restaurants, Tractor Supply, American Express, KLA, Williams-Sonoma, Microchip Technology, Raymond James Financial, Steel Dynamics, and Eli Lilly.

Ares Management led the pack with an average annual dividend growth rate of 23.5%, followed closely by Goldman Sachs and Wells Fargo at 20.1% each.