Thanks to recent inflation, dividend growth is more important than it has been in a long time. When you invest in dividend stocks, look at not only what the payout is now, but what the trends are. Rising payouts will help to offset the rising cost of living in both the short term and the long run. Three stocks in particular don’t have fabulous yields right now, but are set to grow over time.

Eli Lilly (NYSE: LLY)

Eli Lilly is quickly establishing itself in the anti-obesity space, claiming its share of this potentially $100 billion market. But what you may not have heard in recent discussions about the company’s growth has to do with its dividend payouts. They grew annually for more than 40 years, until the financial crisis forced a cut. However, Eli Lilly has bounced back and is again aggressively growing its dividends. Its 0.6% yield may appear low, but that’s only because stock prices are up by 260% in the past three years. Quarterly payouts have more than doubled in the past five years and are on track to keep climbing.

Broadcom (NASDAQ: AVGO)

Broadcom is a semiconductor company that’s cashing in on the AI frenzy. Its recent 10-for-1 stock split is all over the headlines. But what’s getting lost in the story is its consistent dividend growth. Broadcom’s yield is just 1.3%, but quarterly payments are about twice as high as they were five years ago. As business skyrockets, dividend payouts will likely also continue to grow.

Mastercard (NYSE: MA)

Credit card behemoth Mastercard is a great choice for investors looking for something to buy and hold. It’s proven its ability to do well in both economic booms and downturns. In the first three months of this year, Mastercard’s net revenue was up by 10% YOY. Its dividend yield is just 0.6%, but payouts have doubled over the past five years. With a current payout ratio of just 20 times trailing earnings, there is plenty of room for a more aggressive dividend strategy in the future. It’s not a massive growth stock, but Mastercard is a solid and reliable choice.

Neither Lisa Fritscher nor Stocks.News have positions in any of these companies.