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My Top Dividend Growth Stock to Buy Before 2027 and Hold for 20 Years -- and It Has Hiked Its Payout by 15%
Key Points
Morgan Stanley's stock has averaged annual gains of nearly 19% over the past 15 years.
Its dividend has grown even faster over that time.
As I grow older, I'm more interested in dividend-paying stocks, as I can see how dividends can supplement my Social Security income and help support me in the future. But dividend stocks are actually terrific for investors of any age. If your dividend payers are generating, say, $10,000 per year, you can always just plow that money back into your portfolio by buying more stock.
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One dividend payer I've recently noticed is financial services giant Morgan Stanley (NYSE: MS). Its dividend recently yielded a solid 2.4%, and it's been growing briskly -- as has the stock. Here's how the stock has grown over time:
Period |
Average annual growth rate |
|---|---|
Past year |
13.86% |
Past 3 years |
38.67% |
Past 5 years |
15.71% |
Past 10 years |
18.71% |
Past 15 years |
18.77% |
Data source: Morningstar.com, as of Nov. 13, 2026.
Those are impressive returns!
Now check out how robustly the stock's dividend has been growing:
Period |
Average annual dividend growth rate |
|---|---|
Past 5 years |
10.44% |
Past 10 years |
19.12% |
Past 15 years |
23.25% |
Data source: Calculations by author using data from Yahoo!Finance.
The most recent increase was a hefty 15% one.
Should you invest in Morgan Stanley?
Give this big company a closer look if you're seeking dividend income and/or stock-price appreciation. Here are a few tidbits about it:
- Its business is growing: In its solid third quarter, revenue grew 11.5% year over year, with diluted earnings per share growing 8.2%.
- It's expanding its footprint, moving into hundreds of thousands of square feet in Dallas.
- It has been expanding its scope and now offers cryptocurrency ETFs -- ones with relatively low fees that could attract investors.
Morgan Stanley is high on my watch list, and when I have more dollars to invest, it may be added to my long-term portfolio. No one can know just how it will perform in the future, but it's positioned to keep growing for 20 years and beyond.
Selena Maranjian has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.