Three Dividend Kings Defying Inflation With Double-Digit Payout Growth

The Rarity of Sustainable Dividend Growth

Fewer than one in every 54,000 stocks globally have achieved Dividend King status—a distinction earned by raising payouts annually for at least 50 consecutive years. Yet even rarer are those whose dividend increases consistently outpace inflation. While nominal dividend raises may technically maintain official status, they often represent real cuts in purchasing power for income investors. The three companies examined here break this pattern, delivering dividend growth that significantly exceeds inflation rates while building on decades of increases.

Walmart: The Retail Powerhouse With Accelerating Payouts

The Arkansas-based Walmart stands out as a payout champion, announcing a 13% dividend increase for 2025, marking its 52nd consecutive year of increases. Trading on the Nasdaq with a current yield of 0.84%, Walmart’s share price has surged 130% over the past five years as its dividend expanded 28%—comfortably ahead of the 20% cumulative inflation since 2021.

The company’s transformation into a technology-driven retailer explains this momentum. E-commerce sales have grown over 20% for seven consecutive quarters, with last quarter’s growth reaching 27%. U.S. same-store sales climbed 4.5%, while Chinese operations delivered a remarkable 22% increase. Operating cash flow reached $27 billion in the fiscal year, providing $4.5 billion more than the prior year for dividends, buybacks, and acquisitions. Even allocating just one-third of incremental cash flow to dividend hikes could support an 18.8% increase.

Automatic Data Processing: The Cloud Computing Leader

Automatic Data Processing (ADP), headquartered in New Jersey, earned Dividend King status in 2024 with its 50th consecutive increase. November’s 10% hike reflected the company’s broader trajectory: since 2021, ADP has grown dividends 83%, substantially outpacing inflation.

The firm’s dividend yield of 2.6%—more than double the S&P 500 average—demonstrates shareholder-friendly capital allocation. Over nine years, the cloud-based human capital solutions leader repurchased $12 billion in shares while distributing $15 billion in dividends. A 61% payout ratio indicates sustainable growth, as fewer outstanding shares make future raises more manageable. This structural advantage explains why ADP continues accelerating payouts despite a half-century of increases.

Lowe’s: Strategic Acquisitions Fueling Long-Term Growth

The home improvement giant Lowe’s marked its 61st annual dividend increase in 2025, though at a modest 4%—a temporary moderation tied to the company’s $8.8 billion acquisition of Foundation Building Materials. This North American distributor of interior products opens access to a $250 billion addressable market, enhancing fulfillment speed and digital capabilities for professional customers.

Over five years, Lowe’s doubled its dividend—a 100% increase representing 14.9% annually. Foundation Building Materials contributed $6.5 billion in revenue and $635 million in adjusted earnings pre-acquisition, positioning Lowe’s to resume robust payout expansion in 2026. CEO Marvin Ellison framed the deal as essential for capturing market share in the professional segment.

What Separates Dividend Kings From Dividend Pretenders

The distinction between these three and mediocre Dividend Kings lies in execution. Dover, also a Dividend King, raised its payout by just 0.5% last September—lagging the 2.7% inflation rate—and increased dividends only 5% over five years amid 20% cumulative inflation. That represents a real dividend cut.

By contrast, ADP, Walmart, and Lowe’s combine industry dominance with strategic capital allocation. Their acquisition strategies, technological innovation, and operational efficiency enable double-digit dividend growth even after 50+ years of raises. For income investors, the difference between nominal and real dividend growth defines true wealth creation.

The Path Forward for Payout Champions

These three Dividend Kings demonstrate that sustained, inflation-beating dividend growth remains achievable for businesses with durable competitive advantages and disciplined management. Their recent increases—ranging from 10% to 13% annually—suggest the momentum will persist, particularly for Walmart and Lowe’s, whose acquisition strategies and operational leverage position them to fund accelerating shareholder returns.