A rare group of dividend-paying stocks stands out for its exceptional qualities.
Why it matters: These stocks have racked up five straight years of dividend growth of 10% or more. And they’ve passed several rigorous checks. Morningstar’s DividendInvestor newsletter editor David Harrell dug into the data to identify this year’s class of dividend growers.
10 Questions on Dividend Growers in 2026
- You research and compile an annual list of exceptional dividend-paying stocks known as dividend growers. What are the qualifications?
- Are there any caveats?
- The number of dividend growers shrank from 13 stocks last year to 10 this year. Were you surprised?
- Which returning names passed your tough test?
- Intuit, Motorola Solutions, and TJX are the three newcomers. What changed to make them eligible?
- You also have a near-miss list. It’s almost twice the size of the dividend growers list. Can you talk about the stocks that slipped from last year’s standout list and landed among the runners-up?
- The average yield of the near-miss list sits higher than the dividend growers’ list. Why is that?
- Dividend stocks with low yields may not attract most income investors seeking bigger payouts. So, who would these investments be suited for?
- Let’s look to the future. Which dividend-payers appear on track to stay a dividend grower or lose their status in 2027?
- Among the 10 dividend growers from the class of 2026, which stocks do Morningstar analysts consider to be undervalued?
Key Quote on the Appeal of Dividend-Growth Stocks
Some of them are suited for people who are looking for dividend growth as a sign of quality. ... Companies that are able to increase their dividends at an high ongoing rate should [be] quality companies with growing earnings. So, some investors look for that even if they’re not looking for current income.
David Harrell, editor of Morningstar DividendInvestor newsletter
What’s undervalued: Half of this year’s dividend growers are considered undervalued according to Morningstar analysts. Harrell says five of the dividend-paying stocks are trading at discounts of 10% or more. They are Zoetis, Accenture, Intuit, Domino’s Pizza, and SBA Communications.
More From Morningstar on Potential Dividend Growers in 2027
Several stocks appear likely to keep their status as dividend growers next year. Harrell says NextEra Energy, Snap-on, MSCI, and Motorola have already declared dividend increases for this year that should result in a 10% increase in the payout per share. The firms would also need to maintain yields above 1%, their narrow or wide moat ratings, and Lower or Medium Uncertainty Ratings from Morningstar. However, one current Dividend Grower appears on track to slip from the standout list next year: Zoetis will likely miss it since the firm has already made a 6% dividend increase for 2026, and it would need to make another to qualify, says Harrell.
The Morning Filter’s co-host Susan Dziubinski talks with Morningstar’s Dan Lefkovitz about why dividend-growth stocks aren’t just for income investors.
Securities Mentioned in This Episode
Broadcom AVGO
Accenture ACN
Snap-on SNA
NextEra Energy NEE
SBA Communications SBAC
Domino’s Pizza DPZ
Zoetis ZTS
MSCI MSCI
Intuit INTU
Motorola Solutions MSI
TJX TJX
Mondelez International MDLZ
Elevance Health ELV
Stifel Financial SF
UnitedHealth UNH
SS&C Technologies SSNC
