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Dividend growth stocks can be ideal investments to hold in your portfolio for decades. As long as their fundamentals don't change, these stocks can generate an increasing amount of dividend income for your portfolio over the years. And during that time, their valuations may also rise and boost your overall gains from holding these stocks.

Three top dividend growth stocks that recently raised their payouts are Coca-Cola (NYSE: KO), Home Depot (NYSE: HD), and Walmart (NYSE: WMT). Here's how large their recent increases were, and why they can be excellent stocks to buy right now.

1. Coca-Cola: 5.4%

On Feb. 15, soft drink company Coca-Cola announced it would be increasing its dividend by 5.4%. The new quarterly dividend of $0.485 means investors who buy the stock now can collect a yield of around 3.2% -- that's the highest on this list. At that rate, you would need to invest approximately $31,250 into the stock to earn $1,000 in annual dividends.

Coca-Cola's dividend is a great reason for investing in the stock for the long term. The stock is a Dividend King and this recent rate hike is the 62nd consecutive year in which the company has raised its payouts. Given the company's strong position in the market, it's highly probable that Coca-Cola will continue hiking its dividend for years to come.

The company is coming off a strong year in 2023 where net revenue increased by 6% to $45.8 billion and operating income jumped by 4% as Coca-Cola was able to pass rising costs on to consumers. While that strategy won't always work, it's a great indicator of the company's strong brands and overall resiliency, which highlights another reason this can be a fantastic stock to hold for the long haul.

2. Home Depot: 7.7%

Another resilient brand investors shouldn't hesitate to load up on is Home Depot. It's a brand that has become synonymous with home repair. And while demand for home repair isn't strong right now as consumers prioritize spending amid inflation, it's bound to bounce back in the long run.

And Home Depot doesn't appear to be concerned. While net sales of $34.8 billion for the period ending Jan. 28 were down 2.9%, the company still announced a generous 7.7% increase to its dividend. Although the company doesn't have a dividend growth streak as impressive as Coca-Cola's, Home Depot has been paying dividends for nearly 150 consecutive quarters and has been raising its payout since 2010.

For the current fiscal year (which ends in January), the company expects sales to grow by a fairly modest rate of 1%. It may take some time for demand to recover but buying the retail stock for its growing dividend, which currently yields 2.4%, could give investors plenty of incentive to be patient.

3. Walmart: 9.2%

The largest dividend increase on this list belongs to big-box retailer Walmart. Like Coca-Cola, this is another Dividend King with a remarkable track record for increasing its payouts.

On Feb. 20, Walmart announced it was going to raise its dividend for a 51st consecutive year. But what stood out was the rate of the increase. At 9.2%, it was the biggest hike the company had made in more than a decade.

Normally, companies with long dividend growth streaks make more modest increases, which can be more sustainable. Walmart's big increase shows that management has a lot of confidence in its ability to grow earnings in the future.

For the three-months ending Jan. 31, the company reported consolidated revenue of $173.4 billion, which was up 5.7% year over year. Its global e-commerce revenue rose at an even higher rate of 23%. The company's operating income of $7.3 billion was up an impressive 30.4% year over year as Walmart's operating expenses rose at a slower rate (3.8%) than revenue.

The company also recently announced plans to acquire smart TV maker Vizio, which could further bolster Walmart's growth opportunities. For long-term investors, Walmart can make for an excellent stock to buy and hold. With the increase, the stock now yields 1.4%, which is in line with the S&P 500 average.

Should you invest $1,000 in Walmart right now?

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David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Home Depot and Walmart. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.