Top 5 Dividend Stocks to Buy in December 2021: ENB, LMT, MDT, OMC and PM

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Today, I want to tell you my top five dividend growth stocks for December 2021.

My first dividend growth stock pick for December 2021 is Enbridge Inc. - stock ticker ENB. Enbridge is an energy distribution and transportation company. With a market cap of $79 billion, this is the largest energy infrastructure company in North America. Look, I don't have my head in the sand. I know that renewables are the future of energy. But that future
isn't here and now. And in the here and now, Enbridge is providing the energy products and services we need. Their 10-year top-line CAGR is 8.1%, while the bottom line has compounded at an annual rate of
8.3% over that period. With impressive business growth, it shouldn't be surprising to see impressive dividend growth.

Yep. Enbridge has increased its dividend for 25 consecutive years. But it gets even better. A lot better. The stock yields a monstrous 6.8%. But wait. There's more. The 10-year DGR is 11.3%. Where else will you find a double-digit dividend growth rate paired with a yield near 7%? And with a payout ratio of 68.9%, the dividend is almost certainly headed even higher. This stock is up 22% this year, but that was off of a very low level.

Lockheed Martin is the world’s largest defense contractor. This $95 billion (by market cap) defense juggernaut confounds me. The stock has not caught any traction at all. Yet the company keeps bagging multibillion-dollar contracts left and right. This company is not short on growth. They've increased revenue at a CAGR of 3.9% and EPS at a CAGR of 13.4% over the last 10 years.

This stock is flat on the year, and I think it's ripe for accumulation.

Medtronic is a global developer and manufacturer of medical devices.
With its market cap of $149 billion, this is one of the biggest- and best - medical device companies in the world. Medtronic benefits both from general secular growth in healthcare as well as the non-discretionary
nature of their specific area within healthcare. They've grown revenue at a CAGR of 7.1% over the last decade, while compounding EPS at an annual rate of 3.0% over that period. However, because the healthcare system was focused on the pandemic throughout 2020, elective surgeries could make a big comeback as we move forward. Indeed, CFRA is forecasting 10% compound annual growth for Medtronic's EPS over the next three years. That's dividend music to my ears.

My fourth dividend growth stock pick for December 2021 is Omnicom Group Inc. - stock ticker OMC. Omnicom is an advertising, marketing, and corporate communications company. This $14 billion (by market cap) company continues to perform well at the business level, despite the
stock not following suit. And that disconnect between the business and the stock is why I'm highlighting it. Speaking of the business, revenue over the last decade is flat, while EPS has a CAGR of 3.1% over that period. While that only looks so-so, that's only because of the anomalous FY 2020. Looking forward, CFRA is expecting Omnicom to compound its EPS at an annual rate of 11% over the next three years.

My fifth dividend growth stock pick for December 2021 is Philip Morris International Inc. - stock ticker PM. Philip Morris International is the world’s largest publicly traded tobacco company. Their market cap of $138 billion makes them a very large company. But if the valuation weren't so low, it'd be much bigger. The market has not shown this stock a lot of love, largely because the company has not shown a lot of growth. A secular decline in smoking hasn't helped revenue, which is actually down
over the last decade. But thanks partially to share buybacks, EPS has grown at a CAGR of 0.7% over that time frame. However, it's the future here that's particularly exciting, thanks mostly to their revolutionary
heat-not-burn IQOS product. CFRA is forecasting an 8% CAGR for the company's EPS over the next three years, so they could be on the cusp of a growth acceleration across the business. And that business growth acceleration should translate to the dividend.

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