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.

NextEra Energy (NEE)

NextEra Energy is an electric utility with two operating segments, Florida Power & Light (“FPL”) and NextEra Energy Resources (“NEER”). FPL is the largest U.S. electric utility by retail megawatt hour sales and customer numbers.

The rate-regulated electric utility serves about 5.9 million customer accounts in Florida. NEER is the largest generator of wind and solar energy in the world. NEE was founded in 1925. NEE generates roughly 80% of its revenues from FPL.

NextEra Energy reported its Q3 2024 financial results on 10/23/24. For the quarter, the company reported revenues of $7.6 billion (up 5.5% year over year), translating to adjusted earnings of $2.1 billion (up 11% year over year). On a per share basis, adjusted earnings climbed 10% to $1.03.

The utility added ~3 GW of new renewables and storage projects to its backlog, including ~1.4 GW of solar and ~1.4 GW of battery storage, bringing its backlog to over 24 GW.

Year to date, it generated operating revenue of $19.4 billion (down 8.8% year over year), adjusted earnings of $6.0 billion (up 11%), and adjusted earnings per share (“EPS”) of $2.90 (up 9%).

NEE has increased its dividend for 29 consecutive years.

S&P Global Inc. (SPGI)

S&P Global is a worldwide provider of financial services and business information and revenue of over $13 billion. Through its various segments, it provides credit ratings, benchmarks and indices, analytics, and other data to commodity market participants, capital markets, and automotive markets.

S&P Global has paid dividends continuously since 1937 and has increased its payout for 51 consecutive years.

S&P Global posted third quarter earnings on October 24th, 2024, and results were quite strong once again. Adjusted earnings-per-share came to $3.89, which was 25 cents ahead of estimates. Earnings were down from $4.04 in Q2, but much higher than $3.21 in the year-ago period.

Revenue soared 16% higher year-on-year to $3.58 billion, which also beat estimates by $150 million. Growth in the Ratings and Indices segment led the top line higher in Q3, although strength was broad.

S&P Global has grown consistently since the financial crisis, boosting revenue and operating margins on a regular basis, with recent results showing a continuation of this trend. We think S&P Global will see a tailwind from its buyback, as well as high-single digit revenue gains, and some measure of margin expansion to get to our target of 12% earnings-per share growth annually in the coming years.

The most important feature of S&P Global is its strong competitive position. It operates in the highly concentrated financial ratings industry where the three well-known rating agencies control over 90% of global financial debt ratings.

SPGI has increased its dividend for 51 years, making it a Dividend King.

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.

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Bob Ciura has worked at Sure Dividend since October 2016. He oversees all content for Sure Dividend and its partner sites. Bob received a Bachelor’s degree in Finance from DePaul