I have invested in dividends for 7 years—My portfolio’s crown jewels are these dividend giants

Dividend investing is one of the best ways to buy stocks and generate cash flow. Some dividend stocks also outperform the market and can produce enticing long-term returns for patient investors.

That’s why I have been buying dividend stocks for almost a decade. Some of them have performed better than others, but if you want to beat the market, you have to focus on the fundamentals. A corporation must produce rising revenue and earnings growth, with the yield being a nice bonus. These are some of the dividend stocks that have powered up my portfolio.

Broadcom (AVGO)

Broadcom (NASDAQ:AVGO | AVGO Price Prediction) is the ultimate case study of focusing on dividend growth stocks instead of dividend income stocks. For most of 2018 to 2021, Broadcom had a dividend yield that hovered close to 3%. Broadcom also has a double-digit dividend growth rate, offering plenty of cash flow for long-term investors.

The yield has shrunk since then, thanks to the stock’s 900% surge over the past five years. It only has a 0.65% yield right now, but its booming AI business suggests more double-digit dividend hikes. Broadcom delivered 22% year-over-year net income growth in the second quarter, along with a 26.0% net profit margin. 

The stock hasn’t slowed down despite its strong rally. It’s up by more than 50% year-to-date and has more than doubled over the past year.

Alphabet (GOOG, GOOGL)

Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) is another dividend growth stock where investors have to prioritize long-term gains over high cash flow. That’s the approach I like to follow since I am a younger investor and have more time before I have to consider using dividend payouts to cover my living expenses.

GOOG shares are up by 31% year-to-date and have more than tripled over the past five years. The stock only has a 0.35% yield, but since the company just started giving out dividends, it’s possible that Alphabet maintains a high dividend growth rate for many years.

Revenue and earnings continue to march higher for the stock. Alphabet reported 13.8% year-over-year revenue growth and 19.4% year-over-year net income growth in the second quarter. Online ads make up most of Alphabet’s business, but Google Cloud continues to grow at a fast rate and has become a key piece of Alphabet’s long-term success.

Visa (V)

Visa (NYSE:V) is the final stock on this list. It’s a dividend stock that comes with high profit margins, a strong business model, and attractive financial growth rates. Revenue increased by 14.3% year-over-year in Q3 FY25, while net income jumped by 8.2% year-over-year. Visa CEO Ryan McInerney said that consumer spending remained resilient when sharing the recent earnings results. 

The stock hasn’t rallied by as much as AVGO and GOOG. Visa shares are up by 8% year-to-date and come with a 0.70% yield. The stock has also gained more than 60% over the past five years. 

Visa does a good job of boosting its dividend each year. For instance, the company raised its annual dividend by 13% last year. Those meaningful dividend hikes justify staying on board despite the low yield.