Marcin Frąckiewicz

January 24, 2026, 8:52 AM EST. Dividends provide both income and capital growth, contributing over half of the stock market's total return. Rising dividends are crucial to outpace inflation, maintaining purchasing power over time. This report highlights FTSE 350 firms with compound annual dividend growth rates of at least 10% in the past decade. Dividend growth signals robust cash flow and competitive strength, often seen in Dividend Aristocrats-companies with decades of increasing payouts. For example, AstraZeneca's 2024 payout ratio was 57.4%, showing balanced income and earnings. Games Workshop, recently promoted to FTSE 100, exemplifies strong dividend growth and shareholder returns. While initial dividend yields may look modest, steady growth compounds yields significantly, enhancing long-term investor wealth.