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For long-term investors aiming to build lasting wealth, dividend growth stocks stand out as a powerful choice. These companies consistently raise their payouts year after year, delivering reliable income that can be reinvested to compound returns over decades.

Since the 1930s, S&P 500 dividend-paying stocks have generated positive returns in every decade – even during periods when the broader index struggled – thanks to their resilience and ability to weather economic storms. Dividends alone have historically driven about one-third of the broad market index's total return since 1940.

In today’s volatile environment, this steady income and proven track record make dividend growth stocks an essential building block for patient, buy-and-hold portfolios. The following three stocks have a long record of raising their payouts, reflecting strong confidence in their future earnings and making them worth considering for your portfolio.

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Lowe's (LOW)

Lowe's (LOW) stands as a leading home improvement retailer, dominating the market with over 1,700 stores across North America and a strong focus on both DIY customers and professional contractors. Its durable business model thrives on essential demand for home maintenance and renovations, supported by efficient supply chains, innovative digital tools, and high-margin product categories like appliances and tools. This positions Lowe's to benefit from long-term housing trends and economic recovery.

As a Dividend Aristocrat, Lowe's has raised its dividend for 53 consecutive years, showcasing exceptional commitment to shareholders. Recent growth has been robust, with a 10-year compound annual growth rate (CAGR) around 18% and a current yield of approximately 1.9%. The low free cash flow payout ratio of just 22% ensures sustainability while allowing reinvestment in growth. These qualities make LOW a reliable, compounding income stock for long-term investors.

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Domino's (DPZ)

Domino's (DPZ) operates as a global leader in pizza delivery and carryout, with over 21,000 stores worldwide through a highly scalable franchise model. Its success stems from a tech-driven approach, including a best-in-class digital ordering platform, efficient supply chain, and consistent innovation in menu and promotions. This drives strong same-store sales growth and high margins, even in challenging consumer environments.

Domino's has increased its dividend for 13 consecutive years, reflecting disciplined capital allocation and growing cash flows. The 10-year CAGR averages 19%, with a current yield around 1.6% and a conservative FCF payout ratio of 44%. This combination of rapid dividend expansion and business momentum makes DPZ an excellent choice for investors seeking steady income alongside growth potential.

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Visa (V)

Visa (V) powers the world's largest payments network, processing trillions in transactions annually through its vast ecosystem of merchants, banks, and consumers. Its asset-light model generates high margins from transaction fees, benefiting from secular shifts to digital and cashless payments, cross-border growth, and emerging technologies like AI-driven commerce.

Visa has raised its dividend for 17 consecutive years, with a 10-year CAGR of 18% and consistent double-digit increases. The current yield is about 0.7%, backed by an exceptionally low payout ratio (around 21%), leaving ample room for buybacks and reinvestment. This fortress-like moat and reliable compounding make V a premier long-term holding for dividend growth investors.

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