The stocks in this elite group, including Target, consistently hike dividend payouts and beat the market
Target boosted its dividend by 20% on Thursday, as the retailer sought to keep income investors interested in the recently struggling stock by keeping its steady track record of raising payouts. Like Target, there are other elite stocks out there that consistently and easily hike their dividends and also beat the market over the long term. CNBC Pro screened for the S & P 500 using the following criteria: Annualized dividend growth of 7% or more (as good as, or better than, Target) Five-year total annualized return better than the S & P 500's 11% Dividend yield of at least 2% Dividend payout ratio of less than 50% (Amount of earnings paid out as dividends) So to summarize, these stocks increase their payouts a lot over time, they beat the market over the long haul, and they can easily pay their dividends. Here's who made the cut: Along with Target , Warren Buffett favorite HP Inc. made the cut. It is joined by a lot of financials including JPMorgan Chase and Morgan Stanley . Two industrials with consistent cash flows also made the list in railroad Union Pacific and defense stock Lockheed Martin . Despite Target's recent profit warning that's helped bring the stock down more than 30% this year, the retailer is still tops on the list in terms of long-term return. Target shares have returned 26% compounded annually the last five years, more than double the market and the tops in this group.