5 Stocks That Have Doubled Their Dividend in the Last 7 Years to Buy in October

Five consumer companies have more than doubled their dividends since 2019: Williams-Sonoma up 225%, Domino’s more than tripled, TJX up 146%, Lowe’s up 143%, and Costco up 126%. The article cites raised guidance at Williams-Sonoma and TJX, Lowe’s acquisitions totaling $10.125 billion, and Costco’s 92.3% U.S. and Canada membership renewal rate, but notes slower sales at Domino’s and Costco. It frames October as a potential entry point ahead of holiday demand and upcoming earnings, while cautioning that past dividend growth does not ensure future increases.

Analysis

Dividend growth is a lagging indicator of cash generation, not a forward guarantee: the same cash may now be needed for acquisitions, store expansion, or customer acquisition. The useful distinction is demand durability versus payout history. TJX has the clearest potential defensive benefit if consumers trade down, but that thesis needs confirmation in comparable sales and inventory availability; it is not simply a recession hedge. Conversely, a shift toward value could pressure discretionary home spending and make WSM’s claimed AI engagement gains less meaningful unless they translate into durable, incremental gross profit. The reported engagement and related-revenue growth lack absolute scale and margin data, so do not capitalize them as an AI productivity uplift yet.

Near term, Costco’s October sales release is a discrete read-through on traffic and basket resilience. A further deceleration could hit the stock through expectations and valuation sensitivity even if membership economics remain strong; a rebound would reduce that risk but would not establish an attractive entry without valuation context. For LOW, the pro channel may diversify demand, but acquisition integration, financing costs, and returns on acquired revenue are the key 6–18 month tests. DPZ’s loyalty base and carryout mix support retention, but do not resolve competitive pressure or slower sales; Berkshire’s exit is not, by itself, a fundamental signal. Overall, the article’s October seasonal-buying argument risks confusing calendar timing with an earnings edge.

Key Decisions for Investors

• Prefer a conditional relative-value expression: consider long TJX versus short WSM only if consumer data show trading-down demand strengthening while home-furnishing demand weakens. Keep sizing modest; reverse the thesis if TJX comparable sales or margins deteriorate, or WSM demonstrates sustained absolute incremental revenue and profit from its AI tools.
• Treat COST’s October sales report as a catalyst, not an automatic buy signal. A renewed comp slowdown would argue against adding ahead of earnings; stabilization or reacceleration would remove one near-term concern. Check valuation and traffic/basket detail before expressing a long.
• Keep LOW on an acquisition-integration watchlist rather than buying the dividend-growth narrative. Reassess over the next 1–3 quarters against pro-sales growth, cash conversion, leverage, and management’s return-on-invested-capital evidence; weak conversion or integration slippage falsifies the diversification case.
• Do not infer future payout capacity from past dividend increases. Before underwriting DPZ or WSM as income-plus-growth positions, verify free-cash-flow coverage and current payout commitments; the article provides neither.