Dividend growth investing is all about investing in businesses that are routinely increasing their dividends. That means passive dividend income that’s growing, like clockwork, year in and year out. This certainly helps in a world where inflation just about guarantees higher prices on everything over time. Today, I want to tell you about three dividend growth stocks that just increased their dividends.

Dividend Increase Stock #1: Casey’s General Stores (CASY) Casey’s just increased their dividend by 2.9%. I know. 2.9% isn’t much. Nothing to write home about. Or is it? Let’s just keep some perspective here. This is more money. Not only that, it’s more money for doing absolutely nothing other than holding stock in a company. That’s the beauty of dividend growth investing. Hold shares. Get paid. Then get pay raises, which results in you getting paid even more. Gotta love it. This is the 22nd consecutive year of dividend increases for the convenience store company.

Dividend Increase Stock #2: STORE Capital (STOR) STORE Capital just increased their dividend by 6.9%. Yep. Almost 7% more completely passive dividend income. Go to bed. Then wake up the next day to more money than you were getting paid before. It just doesn’t get any better or easier than that. This marks the seventh consecutive year of dividend increases for the real estate investment trust. The triple net retail REIT continues to deliver. This dividend increase is exactly what I was expecting from them. Their five-year DGR is 9.8%. But I think mid-to-high-single-digit growth is an accurate expectation here. And that’s plenty when you consider that the stock also yields 4.1%. I mean, you’re talking about a yield-and-growth combination that’s well into the double digits here. And the payout ratio is manageable – at 79.8%, based on midpoint AFFO/share guidance for this fiscal year. This is one of my favorite REITs.

Dividend Increase Stock #3: Fifth Third Bancorp (FITB) Fifth Third just increased their dividend by 11.1%. A double-digit boost in your passive dividend income for sitting on your hands and simply not selling shares. That’s so easy, even I can do it. How easy or common is it to get a double-digit pay raise from your boss at your job? I’d say not easy and uncommon. But as a shareholder? Both easy and common. The regional bank has now increased its dividend for 11 consecutive years. Banks have had a tough go of it over the last decade. Tons of regulation, low interest rates, trying to grow out of the Great Recession, and then the pandemic. They can’t catch a break. Yet Fifth Third has increased its dividend for 11 consecutive years anyway. Their five-year DGR is 15.1%, so it’s not a surprise to get a double-digit dividend increase right now. And while this increase was already “pre-announced” a while back, they’ve made it official with the actual dividend declaration. With the payout ratio at only 35.0%, the dividend is in a position to keep growing nicely for years to come. Plus, you’re getting a market-beating yield of 3.0% while that growth unfolds. This stock is up 45% YTD, but I think the valuation remains attractive.

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