Image Source: Pixabay
Intergenerational wealth is created when one’s investments provide not only for themselves, but for their children, grandchildren, and beyond. Unfortunately, the skills that it takes to build and maintain a growing investment portfolio are typically not transferred with an inheritance.The good news is that quality dividend growth stocks can generate long-term wealth that lasts through the generations. The following 3 dividend growth stocks should continue to raise their dividends for decades to come.In this way, these 3 dividend growth stocks could produce intergenerational wealth.
Cintas Corporation (CTAS)
Cintas Corporation is the U.S. industry leader in uniform design, manufacturing & rental. The company also offers first aid supplies, safety services, and other business-related services.Cintas reported second quarter earnings on December 19th, 2024, and results were largely in line with expectations. Organic revenue was 7.1% in the quarter, which excludes forex translation and the impacts of acquisitions.Revenue was up 7.6% year-on-year to $2.56 billion, meeting expectations. Earnings came to $1.09 per share, which was seven cents ahead of estimates.Gross margin was $1.28 billion, up from $1.14 billion a year ago. As a percentage of revenue, gross margin was 49.8%, up 180 basis points from a year ago.Operating income was 18.4% higher, and was up 210 basis points as a percentage of revenue at 23.1%. On a dollar basis, earnings came to $449 million, up from $375 million a year ago, up 20%. On a per-share basis, earnings were $1.09, up from 90 cents.Cintas has compounded its earnings-per-share at a rate of about 16% annually since 2012. Over full economic cycles, we believe the company can deliver continued earnings growth in the range of 9% per year.Its two primary growth levers are higher organic revenue and higher margins. Cintas has proven it can grow revenue consistently over the years. It is also adept at removing cost redundancies, which drives operating margin higher over time.CTAS has increased its dividend for 42 years.
Waste Management (WM)
Waste Management is North America’s leading provider of environmental solutions. The company provides waste collection, transfer, recycling, and disposal services to a diverse customer lineup including residential, commercial, industrial, medical, and municipal customers. The company also owns and operates landfill gas-to-energy facilities in the U.S.In February 2024, Waste Management raised its dividend to $3.00 annually, which marked its 21st consecutive annual increase.On January 29th, 2025, Waste Management reported fourth quarter 2024 results for the period ending December 31st, 2024. For the quarter, the company generated revenue of $5.9 billion, a 13% increase compared to Q4 2023.Adjusted net income equaled $688 million or $1.70 per share compared to $703 million or $1.74 per share in the prior-year quarter. Collection and disposal volumes declined by 0.9% in fourth quarter.During 2024, Waste Management repurchased $262 million of common stock and paid $1.2 billion in dividends.Waste Management’s 2025 guidance calls for revenue of $25.55 to $25.80 billion, adjusted operating EBITDA to be approximately $7.55 billion and free cash flow of $2.675 billion to $2.775 billion.Waste Management operates in an industry dominated by only a few competitors, which lends the company pricing power. It also has the opportunity to grow through higher volumes, due to population growth and new customer additions.Thanks to the consistency of its business model and industry leadership position, Waste Management has the ability to retain key customers while attracting new customers.
Abbott Laboratories (ABT)
Abbott Laboratories, founded in 1888, is one of the largest medical appliances & equipment manufacturers in the world, comprised of four segments: Nutrition, Diagnostics, Established Pharmaceuticals and Medical Devices.In the most recent quarter, the company produced $10.6 billion in sales (60.5% outside of the U.S.), which represented a 4.9% improvement compared to the third quarter of 2023 and was $90 million more than expected. Adjusted earnings-per share of $1.21 compared to $1.14 in the prior year and was $0.01 ahead of estimates.With its strong position in growth markets such as diagnostics, where Abbott Laboratories is the market leader in point-of care diagnostics – and cardiovascular medical devices, Abbott Laboratories should be able to generate attractive long-term growth.Abbott Laboratories’ dividend payout ratio has never been above 50% throughout the last decade. Coupled with the fact that the company’s earnings-per-share did not decline during the last financial crisis – it actually continued to grow Abbott Laboratories’ dividend looks very safe.ABT has increased its dividend for 52 consecutive years.More By This Author:The 3 New Dividend Aristocrats In 2025
3 High Dividend Stocks For Lasting Retirement Income
Dividend Aristocrats In Focus: FactSet Research Systems
