Dividend Growth Stocks to Buy

What happened: Dividend growth stocks are gaining traction among investors, with several companies showcasing consistent dividend increases and attractive yields. ExxonMobil (NYSE: XOM) is on track to become a Dividend King within the next decade, while other Dividend Kings like Hormel, Procter & Gamble, Coca-Cola, and Abbott Laboratories have demonstrated strong dividend growth and stable business performance. Industrial dividend growers such as Illinois Tool Works (ITW), Nucor (NDSN), A. O. Smith, and Actuant (ATU) have also caught investors' attention due to their long histories of dividend payments and recent increases.

Market impact: The focus on dividend growth stocks has led to increased interest in companies with consistent track records of raising dividends, particularly those with long histories of doing so. This trend has driven investment in consumer staples, energy, and industrial sectors, with specific companies like ExxonMobil, Coca-Cola, and Procter & Gamble experiencing increased attention. The market has also seen a shift towards quality and consistency, with investors favoring companies that can weather economic downturns and provide steady income.

What to watch next: Investors should monitor the upcoming earnings reports of these dividend growth stocks, with Coca-Cola (KO) reporting on July 26 and Procter & Gamble (PG) on July 28. Additionally, the progress of ExxonMobil's dividend growth towards becoming a Dividend King will be closely watched, with the next dividend increase expected in late 2023 or early 2024. Lastly, the performance of industrial dividend growers like ITW and Nucor will be scrutinized, with their next earnings reports scheduled for August 3 and August 2, respectively.