Dziubinski noted that Morningstar considers companies with wide economic moats to have significant advantages that allow them to successfully fend off competitors for decades. Such high-quality companies can carve out their economic moats in various ways, such as having high switching costs, strong brand identities or economies of scale. Companies that Morningstar analysts think can maintain their competitive advantages for at least 10 years earn narrow economic moat ratings, while those they think can successfully compete for 20 years or longer earn wide economic moat ratings. Dziubinski acknowledged that companies lacking economic moats can exhibit dividend growth. "But for purposes of this article, we included only stocks that have narrow or wide economic moat ratings, choosing to place our bets with high-quality companies," she wrote. These stocks have increased their dividend payments over the past five years; pay out no more than 75% of their earnings in the form of dividends; possess competitive advantages, as measured by Morningstar's economic moat rating; and were trading at among the widest discounts to Morningstar's fair value estimates as of Aug. 4. See the gallery for 10 dividend-growth stocks to buy now, according to Morningstar. Year-to-date performance is as of late morning Aug. 9.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Sponsored by Addepar
Tech Is the New Talent Magnet: Firms That Invest in Innovation Attract Top Advisors
Sponsored by Allianz Life Insurance Company of North America
Enhanced First-Year Fixed Rate: 10-Year Accumulation Example
Sponsored by Nitrogen
The State of Investor Sentiment Report: Investor Sentiment in Volatile Markets