Top Seven Stocks for Steady Dividend Increases (2022-2025)
In the turbulent economic landscape of 2025, seven companies have emerged as the standout performers, earning the title of the "Magnificent Seven" of dividend growth. These companies have not only defied the odds but have doubled the performance of the Vanguard S&P 500 ETF (VOO) over the screening period.
The screening process focused on large-cap and mega-cap companies with a minimum market cap of $10 billion, a minimum 10% annualized return over the recent three-year period, and a minimum CAGR of 10% for dividend growth, revenue growth, earnings per share growth, and free cash flow growth over the same period.
Leading the pack is Comfort Systems USA (FIX), the top overall performer for the second year in a row. FIX has benefited greatly from infrastructure spending and reshoring, with its revenue compounding almost 30% annually and EPS up more than 40% a year. The company's free cash flow has been doubling, and it currently holds the stock price of approximately 662.50 EUR in Germany, a new all-time high.
Texas Roadhouse (TXRH) takes the dividend award with the highest yield of the group at 1.65%, and its strong performance is evident in its financials. TXRH's same-store sales rose ~9% and ~6% over the past two years, and the average weekly sales per restaurant increased about 5% YoY in the most recent quarter.
Visa (V) was identified as the top pick for the future, with its payments volume up 8-9% so far in 2025. Reinvested dividends narrow the gap slightly in favor of VOO, though the dividend CAGR for this group has grown roughly three times faster than the index. Investing $1,000 in each of these companies would have returned around $21,260, compared to approximately $10,788 returned by investing $7,000 in the S&P 500.
Energy stocks, such as Occidental Petroleum (OXY), Constellation Energy (CEG), and Exxon Mobil (XOM), also made a significant impact, leading the market due to rising prices and global supply disruptions.
However, the economic landscape was not without its challenges. The S&P 500 was headed for its worst year since the financial crisis, while geopolitical tensions continued to escalate, with Russia's war in Ukraine intensifying and protests erupting across Iran after the death of Mahsa Amini.
Despite these challenges, the "Magnificent Seven" have demonstrated resilience and adaptability, positioning themselves as strong investments for the future.
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