The strategy behind dividend growth investing centers around buying quality companies with strong underlying fundamentals and a culture of rewarding shareholders. I define strong fundamentals as consistent growth in both the top line and bottom line because this allows a trickle-down effect in terms of dividend growth.

The rural lifestyle retailer, Tractor Supply (NASDAQ: TSCO), is arguably a great dividend growth pick. Since initiating its quarterly dividend of $0.04 per share in 2010, the company grew its payout by a staggering 2,200% to $0.92 per share. It would be unreasonable to expect this kind of growth to be replicated in the next decade. But Tractor Supply likely will have plenty of dividend growth in its future, making it a great buy for dividend growth investors. Let's drill down into why this will be the case. 

With more than 2,200 stores, including its 180 small-box pet specialty retailer stores called PetSense, Tractor Supply is the biggest rural lifestyle retailer in the U.S. This uniquely positions the company to take advantage of a shift in preference from urban living to rural living among consumers. The share of respondents to a Gallup poll wanting to live in a town or rural area has surged from 39% in the pre-pandemic year of 2018 to 48% as of 2020.

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Source Fool.com