We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
5 Dividend Growth Stocks for a Safe & Income-Driven Portfolio
Read MoreHide Full Article
Key Takeaways
Dividend growth stocks offer stability and income during volatile market conditions.
AEM, UGI, QFIN, TSM and GPI show strong earnings, sales and dividend growth histories.
Each stock also trades below industry cash flow metrics and has outpaced the S&P 500 in 12-month gains.
Dividend investing has emerged as one of the most resilient strategies in 2025, gaining traction amid heightened market volatility and lingering uncertainties. While U.S. stocks continue to hover near record highs, buoyed by optimism around trade negotiations, robust corporate earnings, cooling inflation and the AI-driven rally, investor sentiment remains clouded by geopolitical tensions and ambiguity surrounding the Fed’s next moves.
Dividends offer a reliable stream of income, making them an attractive choice during uncertain times. Although they typically don’t deliver outsized price gains, dividend-paying stocks are known for stabilizing portfolios and outperforming in turbulent markets. Focusing on dividend growth rather than just yield can further enhance returns.
Companies with a consistent track record of increasing their payouts tend to be financially strong and offer better long-term capital appreciation. This strategy helps build a healthier, more resilient portfolio compared to chasing high-yield or one-off dividend payers. We have selected five dividend growth stocks — Agnico Eagle Mines Limited (AEM - Free Report) , UGI Corporation (UGI - Free Report) , Qifu Technology Inc. (QFIN - Free Report) , Taiwan Semiconductor Manufacturing Company Ltd. (TSM - Free Report) and Group 1 Automotive (GPI - Free Report) — which could be solid choices for the second half.
Why Dividend Growth?
Stocks that have a strong history of dividend growth belong to mature companies, which are less susceptible to large swings in the market and thus act as a hedge against economic or political uncertainty as well as stock market volatility. At the same time, these offer downside protection with their consistent increase in payouts.
Additionally, these stocks have superior fundamentals that make dividend growth a quality and promising investment for the long term. These include a sustainable business model, a long track of profitability, rising cash flows, good liquidity, a strong balance sheet and some value characteristics. Further, a history of strong dividend growth indicates that a dividend increase is likely in the future.
Although these stocks do not necessarily have the highest yields, they have outperformed for a longer period than the broader stock market or any other dividend-paying stock.
As a result, picking dividend growth stocks appears as a winning strategy when some other parameters are also included.
5-Year Historical Dividend Growth greater than zero: This selects stocks with a solid dividend growth history.
5-Year Historical Sales Growth greater than zero: This represents stocks with a strong record of growing revenues.
5-Year Historical EPS Growth greater than zero: This represents stocks with a solid earnings growth history.
Next 3-5 Year EPS Growth Rate greater than zero: This represents the rate at which a company’s earnings are expected to grow. Improving earnings should help companies sustain dividend payments.
Price/Cash Flow less than M-Industry: A ratio less than M-industry indicates that the stock is undervalued in that industry and that an investor needs to pay less for better cash flow generated by the company.
52-Week Price Change greater than S&P 500 (Market Weight): This ensures that the stock appreciated more than the S&P 500 over the past year.
Top Zacks Rank: Stocks having a Zacks Rank #1 (Strong Buy) and 2 (Buy) generally outperform their peers in all types of market environment.
Growth Score of B or better: Our research shows that stocks with a Growth Score of A or B when combined with a Zacks Rank #1 or 2 offer the best upside potential.
Just these few criteria narrowed down the universe from more than 7,700 stocks to just 14.
Here are five of the 14 stocks that fit the bill:
Canada-based Agnico Eagle is a gold producer with mining operations in Canada, Mexico and Finland and exploration activities in Canada, Europe, Latin America and the United States. It saw a positive earnings estimate revision of 42 cents over the past 30 days for this year. The company has an estimated earnings growth rate of 52.5%.
Pennsylvania-based UGI Corp. is a holding company that distributes, stores, transports and markets energy products and related services through its subsidiaries. It is a domestic and international retail distributor of propane and butane liquefied petroleum gases; a provider of natural gas and electric service via regulated local distribution utilities; a generator of electricity and a regional marketer of energy commodities. The stock has an estimated earnings growth rate of 2.29% for the fiscal year (ending September 2025) and delivered an average earnings surprise of 75.67% for the past four quarters.
UGI Corp. has a Zacks Rank #1 and a Growth Score of B.
China-based Qifu Technology is a Credit-Tech platform principally in China that provides a comprehensive suite of technology services to assist financial institutions, consumers and SMEs in the loan lifecycle, ranging from borrower acquisition, preliminary credit assessment, and fund matching to post-facilitation services. The stock saw a positive earnings estimate revision of a couple of cents for this year, with an estimated earnings growth rate of 25.62%.
Qifu has a Zacks Rank #1 and a Growth Score of B.
Taiwan-based Taiwan Semiconductor is the world's largest dedicated integrated circuit foundry. The company has seen a positive earnings estimate revision of 20 cents over the past 30 days for this year and has an estimated earnings growth rate of 34.66%.
TSM currently has a Zacks Rank #2 and a Growth Score of A.
Texas-based Group 1 Automotive is one of the leading automotive retailers in the world, with operations primarily located in the United States and the UK. The company saw a positive earnings estimate revision of 15 cents over the past month for this year and has an estimated earnings growth rate of 4.3%.
Group 1 Automotive has a Zacks Rank #1 and a Growth Score of A.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Image: Bigstock
5 Dividend Growth Stocks for a Safe & Income-Driven Portfolio
Key Takeaways
Dividend investing has emerged as one of the most resilient strategies in 2025, gaining traction amid heightened market volatility and lingering uncertainties. While U.S. stocks continue to hover near record highs, buoyed by optimism around trade negotiations, robust corporate earnings, cooling inflation and the AI-driven rally, investor sentiment remains clouded by geopolitical tensions and ambiguity surrounding the Fed’s next moves.
Dividends offer a reliable stream of income, making them an attractive choice during uncertain times. Although they typically don’t deliver outsized price gains, dividend-paying stocks are known for stabilizing portfolios and outperforming in turbulent markets. Focusing on dividend growth rather than just yield can further enhance returns.
Companies with a consistent track record of increasing their payouts tend to be financially strong and offer better long-term capital appreciation. This strategy helps build a healthier, more resilient portfolio compared to chasing high-yield or one-off dividend payers. We have selected five dividend growth stocks — Agnico Eagle Mines Limited (AEM - Free Report) , UGI Corporation (UGI - Free Report) , Qifu Technology Inc. (QFIN - Free Report) , Taiwan Semiconductor Manufacturing Company Ltd. (TSM - Free Report) and Group 1 Automotive (GPI - Free Report) — which could be solid choices for the second half.
Why Dividend Growth?
Stocks that have a strong history of dividend growth belong to mature companies, which are less susceptible to large swings in the market and thus act as a hedge against economic or political uncertainty as well as stock market volatility. At the same time, these offer downside protection with their consistent increase in payouts.
Additionally, these stocks have superior fundamentals that make dividend growth a quality and promising investment for the long term. These include a sustainable business model, a long track of profitability, rising cash flows, good liquidity, a strong balance sheet and some value characteristics. Further, a history of strong dividend growth indicates that a dividend increase is likely in the future.
Although these stocks do not necessarily have the highest yields, they have outperformed for a longer period than the broader stock market or any other dividend-paying stock.
As a result, picking dividend growth stocks appears as a winning strategy when some other parameters are also included.
5-Year Historical Dividend Growth greater than zero: This selects stocks with a solid dividend growth history.
5-Year Historical Sales Growth greater than zero: This represents stocks with a strong record of growing revenues.
5-Year Historical EPS Growth greater than zero: This represents stocks with a solid earnings growth history.
Next 3-5 Year EPS Growth Rate greater than zero: This represents the rate at which a company’s earnings are expected to grow. Improving earnings should help companies sustain dividend payments.
Price/Cash Flow less than M-Industry: A ratio less than M-industry indicates that the stock is undervalued in that industry and that an investor needs to pay less for better cash flow generated by the company.
52-Week Price Change greater than S&P 500 (Market Weight): This ensures that the stock appreciated more than the S&P 500 over the past year.
Top Zacks Rank: Stocks having a Zacks Rank #1 (Strong Buy) and 2 (Buy) generally outperform their peers in all types of market environment.
Growth Score of B or better: Our research shows that stocks with a Growth Score of A or B when combined with a Zacks Rank #1 or 2 offer the best upside potential.
Just these few criteria narrowed down the universe from more than 7,700 stocks to just 14.
Here are five of the 14 stocks that fit the bill:
Canada-based Agnico Eagle is a gold producer with mining operations in Canada, Mexico and Finland and exploration activities in Canada, Europe, Latin America and the United States. It saw a positive earnings estimate revision of 42 cents over the past 30 days for this year. The company has an estimated earnings growth rate of 52.5%.
AEM currently flaunts a Zacks Rank #1 and has a Growth Score of B. You can see the complete list of today’s Zacks #1 Rank stocks here.
Pennsylvania-based UGI Corp. is a holding company that distributes, stores, transports and markets energy products and related services through its subsidiaries. It is a domestic and international retail distributor of propane and butane liquefied petroleum gases; a provider of natural gas and electric service via regulated local distribution utilities; a generator of electricity and a regional marketer of energy commodities. The stock has an estimated earnings growth rate of 2.29% for the fiscal year (ending September 2025) and delivered an average earnings surprise of 75.67% for the past four quarters.
UGI Corp. has a Zacks Rank #1 and a Growth Score of B.
China-based Qifu Technology is a Credit-Tech platform principally in China that provides a comprehensive suite of technology services to assist financial institutions, consumers and SMEs in the loan lifecycle, ranging from borrower acquisition, preliminary credit assessment, and fund matching to post-facilitation services. The stock saw a positive earnings estimate revision of a couple of cents for this year, with an estimated earnings growth rate of 25.62%.
Qifu has a Zacks Rank #1 and a Growth Score of B.
Taiwan-based Taiwan Semiconductor is the world's largest dedicated integrated circuit foundry. The company has seen a positive earnings estimate revision of 20 cents over the past 30 days for this year and has an estimated earnings growth rate of 34.66%.
TSM currently has a Zacks Rank #2 and a Growth Score of A.
Texas-based Group 1 Automotive is one of the leading automotive retailers in the world, with operations primarily located in the United States and the UK. The company saw a positive earnings estimate revision of 15 cents over the past month for this year and has an estimated earnings growth rate of 4.3%.
Group 1 Automotive has a Zacks Rank #1 and a Growth Score of A.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance.