Which stocks are suitable for a dividend growth portfolio?

Stocks like Johnson & Johnson (JNJ), McDonald's (MCD), Procter & Gamble (PG), Coca-Cola (KO), Colgate-Palmolive (CL), and Lowe's (LOW) are suitable due to their long history of dividend increases.

Is this strategy safe?

No investment strategy is risk-free, but focusing on high-quality dividend growth stocks reduces risk compared to chasing high, unsustainable yields.

The Portfolio That Gives You a $2,000 Raise Every Year

A diversified portfolio of high-quality dividend growth stocks such as JNJ, MCD, PG, KO, CL, and LOW can provide investors with a $2,000 annual raise through rising dividend payments.

July 18, 2026

2 min read

Source: 24/7 Wall St.

Key Numbers

annual raise

2000

portfolio value

100000

yield

Most investors chase the biggest yield they can find, but the portfolio that actually grows your income year after year is built on a completely different logic. Here is how dividend math quietly delivers something that usually requires a performance review.

Details

A $100,000 portfolio allocated to stocks like JNJ, MCD, PG, KO, CL, and LOW can yield an initial 2%, or $2,000 per year. But as dividends grow at 7-10% annually, the yearly increase can reach $2,000 after several years.

Context

The mentioned companies have long histories of dividend increases. For example, Coca-Cola has raised its dividend for over 60 consecutive years, and Johnson & Johnson for over 50 years. This consistent dividend growth is what enables the portfolio to generate a rising income stream.

What This Means for Investors

Instead of chasing high yields that may be unsustainable, investors can focus on building a portfolio of reliable dividend growth stocks. This approach provides increasing income over time without needing to sell shares.

Frequently Asked Questions

Assuming an initial yield of 2%, a $100,000 portfolio would generate $2,000 in annual dividends. With dividend growth of 7-10% per year, the annual increase can reach $2,000.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.