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NZ Dividend Growth Leaders

NZX stocks with the highest historical dividend per share growth over the last 5 years. Past growth does not guarantee future growth.

Read the methodology

This ranking is informational only. High 5-year CAGR alone is not a signal of future growth — it should be cross-checked with payout ratio, earnings growth and historical dividend-paying length. Read the full method at dividend growth investing in NZ.

8
10%+ CAGR (very strong historical growth)
3
5–10% CAGR (strong historical growth)
4
0–5% CAGR (modest historical growth)

Very strong historical growth (10%+ 5-year CAGR)

Stocks whose dividend per share has grown at 10% or more annually over the past 5 years. Cross-check payout ratio before drawing conclusions.

Strong historical growth (5–10% 5-year CAGR)

Stocks whose dividend per share has grown 5–10% annually — broadly in line with what mature dividend payers have historically delivered.

Modest historical growth (0–5% 5-year CAGR)

Stocks with positive but slower dividend growth — typically utilities, REITs or mature businesses with a higher starting payout ratio.

Important caveats

  • Past dividend growth does not guarantee future dividend growth. Companies can cut or suspend dividends at any time.
  • A high 5-year CAGR combined with a payout ratio above 100% is a warning signal — the growth may not be sustainable.
  • Recent IPOs and turnaround stories often show high one-period growth that does not persist. Cross-reference with the dividend aristocrats list for long-history payers.
  • This page is informational only and does not constitute financial advice. Consult a licensed financial adviser before making investment decisions.

Frequently asked questions

What is dividend growth rate (5-year CAGR)?

CAGR (Compound Annual Growth Rate) is the constant annual rate at which a value has grown over a period. For dividends, we calculate the rate at which dividend per share has grown over the last 5 fiscal years. A 5-year CAGR of 8% means the dividend has grown on average 8% per year compounded.

Why focus on growth rather than yield?

Current yield is a snapshot — what the stock pays today relative to today's price. Dividend growth is a trajectory — whether the dividend has been rising over time. For long-holding-period investors, a modest starting yield with sustained growth can compound to higher 'yield on cost' over many years. Past growth does not guarantee future growth.

Does fast historical growth guarantee future growth?

No. A high 5-year CAGR captures the last cycle. The next cycle may look different — companies that grew dividends strongly during a recovery often flatten or cut in a downturn. Cross-check with the payout ratio (is there room to keep growing?) and the dividend-aristocrats list (has the company been through multiple cycles?).

What's a 'yield trap' and how do I avoid one here?

A yield trap is a stock where the headline yield (or in this case, growth rate) looks attractive but the underlying distribution is unsustainable. The classic signal is high yield/growth combined with a payout ratio above 100%. Always cross-reference with our safer-dividends methodology page.

What sectors typically appear in dividend growth lists?

Mature companies in stable sectors (financials, consumer staples, infrastructure) often dominate dividend-growth rankings because they have predictable earnings growth and a deliberate dividend-growth policy. Cyclicals can appear during recovery phases but tend to disappear when the cycle turns.

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General Disclaimer

This website provides general information about NZX-listed dividend stocks for educational purposes only. Nothing on this site constitutes financial advice or a recommendation to buy, sell, or hold any security. Always consult a licensed financial adviser before making investment decisions.