This year has been highly favorable for dividend investors, with numerous companies already increasing their payouts by 10% or more. As 2024 progresses, several other companies are expected to follow suit, including Microsoft, Starbucks, and MPLX. These companies offer enticing options for investors seeking consistent dividend growth.

Firstly, while Microsoft may not currently boast a high dividend yield (approximately 0.8%), the tech giant has a remarkable track record of growing its payout over the years. With a compound annual growth rate of around 10% over the past decade, Microsoft's dividend would double every seven years at its current rate. The company's robust cash flow, generating $49.4 billion in net cash from operations and $29.8 billion in free cash over the last six months, easily covers its $10.6 billion in dividend payments. Backed by a cash-rich balance sheet, with $81 billion in cash, equivalents, and short-term investments, Microsoft is poised to continue its strong dividend growth. Furthermore, strategic investments in gaming (Activision acquisition) and AI (OpenAI partnership) provide additional growth drivers for the company's cash flow, making another dividend hike likely later this year.

Starbucks, a renowned coffee giant, delivered its 13th consecutive annual dividend increase in 2023, raising its payout by 7.5%. Since initiating its dividend in 2010, Starbucks has maintained an impressive compound annual growth rate of 20%. With a current yield of 2.5%, well above the S&P 500's average dividend yield of 1.4%, the company aims to further accelerate its dividend growth through its Triple Shot Reinvention strategy. By expanding its store count to 55,000 global locations by 2030 and driving efficiency gains to save $3 billion annually, Starbucks expects 10%-12% revenue growth and 15%-20% earnings growth in fiscal 2024. With long-term projections of revenue growth above 10% and earnings growth above 15%, Starbucks may reward shareholders with an even larger dividend raise this year.

MPLX, a master limited partnership (MLP) established in 2012, has consistently increased its distribution every year since its formation. In the past two years alone, MPLX hiked its payout by 10%. Despite boasting an impressive yield of 8.4%, the company comfortably generated enough cash to cover its payout by 1.6 times in 2023. Retaining substantial funds for expansion projects, MPLX ended the year with $1 billion in cash and a low 3.3 times leverage ratio, well below its stable cash flow's capacity of 4.0 times. With its cash flow growing at a solid rate of over 7% last year, fueled by organic expansion projects, MPLX plans to complete multiple projects in 2024, further enhancing its cash flow for dividend growth. Given its strong financial position, a 10% dividend hike this year seems entirely feasible for the MLP.

These dividend growth stocks, Microsoft, Starbucks, and MPLX, have consistently outperformed with above-average dividend growth rates. With their solid financial foundations and promising growth prospects, it is no surprise that they are attractive options for investors seeking rapidly rising income streams in 2024.

[DISCLOSURE: Matt DiLallo has positions in Starbucks. The Motley Fool has positions in and recommends Microsoft and Starbucks. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft.]