Three dividend-growth stocks to own for the next decade: Tractor Supply, Coca-Cola, and American Express

For long-term investors, dividend growth stocks are among the most reliable ways to build wealth. The income typically rises over time, and the underlying businesses—when selected carefully—can provide the cash generation needed to support continued dividend increases.

Tractor Supply: dividend consistency supported by cash returns

Tractor Supply’s shares have fallen sharply over the past year, trading around $34 as of this writing, well below the 52-week high near $64. Despite the stock decline, the dividend story remains among the most consistent in retail.

In February, the company’s board increased the quarterly dividend by 4.3% to $0.24 per share, bringing the annualized payout to $0.96. That marked the 17th consecutive year of dividend increases. With the stock pullback, the dividend yield is now around 2.7%.

Operationally, the business continues to grow. For the first quarter of 2026 (period ended March 28), net sales rose 3.6% year over year to $3.59 billion, supported by a record 40 new store openings. Earnings per share declined to $0.31 from $0.34 a year earlier, but management reaffirmed full-year guidance of $2.13 to $2.23, up from $2.06 in 2025.

With a payout ratio in the mid-40% range, the dividend has room to grow. The company is also returning substantial capital: in Q1, Tractor Supply returned $244.4 million to shareholders through dividends and share repurchases, building on roughly $848 million returned in 2025.

Coca-Cola: long dividend record paired with improving fundamentals

Coca-Cola is known for dividend consistency. The company has raised its dividend for 64 straight years, placing it among Dividend Kings—companies that have increased dividends for at least 50 consecutive years.

In February, Coca-Cola increased the quarterly dividend from $0.51 to $0.53. At the new annualized rate of $2.12, the stock yields roughly 2.6% as of this writing.

Underlying business momentum also remains strong. In the first quarter, Coca-Cola’s net revenue rose 12% year over year, and comparable non-GAAP (adjusted) earnings per share increased 18%. Management raised full-year adjusted earnings-per-share growth guidance to 8% to 9%, up from 7% to 8% previously.

Dividend coverage is supported by cash flow. Coca-Cola generated about $11.4 billion in adjusted free cash flow in 2025 versus roughly $8.8 billion in dividends paid. Management expects 2026 adjusted free cash flow to rise to about $12.2 billion.

American Express: rapid dividend growth with a lower starting yield

American Express is often overlooked by income-focused investors because its yield is relatively low—about 1.2% as of this writing. However, for dividend growth investors, the recent pace of increases stands out.

In March, American Express raised its quarterly dividend by 16%, increasing the payout from $0.82 to $0.95 per share. Over the past five years, the dividend has more than doubled, compounding at an annual rate above 17%.

Much of the dividend growth is tied to earnings momentum. In Q1, total revenue, net of interest expense, rose 11% year over year to $18.9 billion, and earnings per share increased 18% to $4.28. Billed business—what cardholders are spending—grew 10% year over year, described as the strongest quarterly pace in three years. CEO Stephen Squeri said this represented the company’s “highest quarterly growth [in spending] in three years” on the Q1 earnings call.

Management is targeting 2026 earnings per share of $17.30 to $17.90, about 14% growth at the midpoint. With a payout ratio around 22%, the dividend has room to continue rising. The stock is also down about 14% year to date, which may offer a more attractive entry point.

Risks and why the combination may work over a decade

Each company carries distinct risks. Tractor Supply faces soft comparable-store sales and a weaker discretionary environment. Coca-Cola distributes a high share of free cash flow, which could reduce cushion if business slows. American Express is exposed to consumer credit cycles and any weakening in premium consumer spending.

At the same time, the strengths are complementary. Coca-Cola provides unmatched dividend longevity, American Express offers rapid payout growth that is less common in financial stocks, and Tractor Supply’s dividend growth has been steadier while its depressed stock price has lifted the starting yield. Together, these three dividend stocks could form a dependable income-focused foundation, with payouts expected to compound over time.