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5 Dividend Growth Stocks to Buy amid Rising Inflation Risk
All three major U.S. stock indices closed on a weak note yesterday, falling more than 1%, reflecting investor concerns about persistent inflation. With the Federal Reserve keeping rates unchanged amid rising Middle East tensions and surging oil prices, investor patience appears to be fading.
Meanwhile, the February Producer Price Index ("PPI") disappointed those hoping for a smooth economic recovery, showing that wholesale price increases are harder to control than expected.
Against this backdrop, the appeal of high-beta growth stocks may be fading, prompting investors to turn toward steady dividend-growth stocks. These companies have a proven track record of increasing payouts, reflecting the balance sheet resilience and cash flow durability needed to navigate a period in which the traditional growth narrative is being re-evaluated.
Stocks with a strong history of year-over-year dividend growth can help build a resilient portfolio with greater potential for capital appreciation compared to simple dividend-paying or high-yield stocks.
We have selected five dividend growth stocks — Flowserve, Analog Devices, Broadcom, NVIDIA and TIM S.A. — that could be solid choices for your portfolio.
Why Is Dividend Growth Better?
Stocks with 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.
These stocks possess strong fundamentals, making them attractive long-term dividend-growth investments. Their strengths include sustainable business models, a long track record of profitability, rising cash flows, solid liquidity, strong balance sheets and attractive valuation characteristics. A consistent history of dividend growth underscores the potential for continued growth ahead.
Although these stocks do not necessarily have the highest yields, they have outperformed the broader stock market or any other dividend-paying stock for an extended period.
Here are five of the nine stocks that fit the bill:
Texas-based Flowserve develops and manufactures precision-engineered flow control equipment, such as pumps, valves and seals, for critical service applications that require high reliability. The Zacks Consensus Estimate for FLS' 2026 revenues suggests a year-over-year improvement of 6.3%. The stock boasts a long-term (three-to-five years) earnings growth rate of 11% and has an annual dividend yield of 1.13%.
Massachusetts-based Analog Devices is an original equipment manufacturer of semiconductor devices, specifically analog, mixed signal, and digital signal processing integrated circuits. The Zacks Consensus Estimate for ADI's fiscal 2026 revenues suggests a year-over-year improvement of 25.1%. The stock boasts a long-term earnings growth rate of 19.40% and has an annual dividend yield of 1.43%.
ADI currently has a Zacks Rank #2 and a Growth Score of B.
California-based Broadcom is a premier designer, developer and global supplier of a broad range of semiconductor devices, with a focus on complex digital and mixed signal complementary metal oxide semiconductor (CMOS)-based devices and analog III-V-based products. The Zacks Consensus Estimate for AVGO's fiscal 2026 revenues suggests a year-over-year improvement of 58%. The stock boasts a long-term earnings growth rate of 48.60% and has an annual dividend yield of 0.82%.
AVGO currently holds a Zacks Rank #2 and has a Growth Score of B.
California-based NVIDIA is the worldwide leader in visual computing technologies and the inventor of the graphics processing unit, or GPU. The Zacks Consensus Estimate for NVDA's fiscal 2027 revenues suggests a year-over-year improvement of 60%. The stock boasts a long-term earnings growth rate of 39.1% and has an annual dividend yield of 0.02%.
NVDA currently carries a Zacks Rank #2 and has a Growth Score of B.
Brazil-based TIM is a telecommunications company providing mobile voice, broadband internet, data transmission and 5G services. The Zacks Consensus Estimate for TIMB's 2026 revenues suggests a year-over-year improvement of 11.8%. The stock boasts a long-term earnings growth rate of 20.8% and has an annual dividend yield of 5.37%.
TIMB currently holds a Zacks Rank #2 and has a Growth Score of B.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
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.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
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Zacks.com featured highlights include Flowserve, Analog Devices, Broadcom, NVIDIA and TIM
For Immediate Release
Chicago, IL – March 20, 2026 – Stocks in this week’s article are Flowserve (FLS - Free Report) , Analog Devices (ADI - Free Report) , Broadcom (AVGO - Free Report) , NVIDIA (NVDA - Free Report) and TIM S.A. (TIMB - Free Report) .
5 Dividend Growth Stocks to Buy amid Rising Inflation Risk
All three major U.S. stock indices closed on a weak note yesterday, falling more than 1%, reflecting investor concerns about persistent inflation. With the Federal Reserve keeping rates unchanged amid rising Middle East tensions and surging oil prices, investor patience appears to be fading.
Meanwhile, the February Producer Price Index ("PPI") disappointed those hoping for a smooth economic recovery, showing that wholesale price increases are harder to control than expected.
Against this backdrop, the appeal of high-beta growth stocks may be fading, prompting investors to turn toward steady dividend-growth stocks. These companies have a proven track record of increasing payouts, reflecting the balance sheet resilience and cash flow durability needed to navigate a period in which the traditional growth narrative is being re-evaluated.
Stocks with a strong history of year-over-year dividend growth can help build a resilient portfolio with greater potential for capital appreciation compared to simple dividend-paying or high-yield stocks.
We have selected five dividend growth stocks — Flowserve, Analog Devices, Broadcom, NVIDIA and TIM S.A. — that could be solid choices for your portfolio.
Why Is Dividend Growth Better?
Stocks with 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.
These stocks possess strong fundamentals, making them attractive long-term dividend-growth investments. Their strengths include sustainable business models, a long track record of profitability, rising cash flows, solid liquidity, strong balance sheets and attractive valuation characteristics. A consistent history of dividend growth underscores the potential for continued growth ahead.
Although these stocks do not necessarily have the highest yields, they have outperformed the broader stock market or any other dividend-paying stock for an extended period.
Here are five of the nine stocks that fit the bill:
Texas-based Flowserve develops and manufactures precision-engineered flow control equipment, such as pumps, valves and seals, for critical service applications that require high reliability. The Zacks Consensus Estimate for FLS' 2026 revenues suggests a year-over-year improvement of 6.3%. The stock boasts a long-term (three-to-five years) earnings growth rate of 11% and has an annual dividend yield of 1.13%.
FLS currently sports 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.
Massachusetts-based Analog Devices is an original equipment manufacturer of semiconductor devices, specifically analog, mixed signal, and digital signal processing integrated circuits. The Zacks Consensus Estimate for ADI's fiscal 2026 revenues suggests a year-over-year improvement of 25.1%. The stock boasts a long-term earnings growth rate of 19.40% and has an annual dividend yield of 1.43%.
ADI currently has a Zacks Rank #2 and a Growth Score of B.
California-based Broadcom is a premier designer, developer and global supplier of a broad range of semiconductor devices, with a focus on complex digital and mixed signal complementary metal oxide semiconductor (CMOS)-based devices and analog III-V-based products. The Zacks Consensus Estimate for AVGO's fiscal 2026 revenues suggests a year-over-year improvement of 58%. The stock boasts a long-term earnings growth rate of 48.60% and has an annual dividend yield of 0.82%.
AVGO currently holds a Zacks Rank #2 and has a Growth Score of B.
California-based NVIDIA is the worldwide leader in visual computing technologies and the inventor of the graphics processing unit, or GPU. The Zacks Consensus Estimate for NVDA's fiscal 2027 revenues suggests a year-over-year improvement of 60%. The stock boasts a long-term earnings growth rate of 39.1% and has an annual dividend yield of 0.02%.
NVDA currently carries a Zacks Rank #2 and has a Growth Score of B.
Brazil-based TIM is a telecommunications company providing mobile voice, broadband internet, data transmission and 5G services. The Zacks Consensus Estimate for TIMB's 2026 revenues suggests a year-over-year improvement of 11.8%. The stock boasts a long-term earnings growth rate of 20.8% and has an annual dividend yield of 5.37%.
TIMB currently holds a Zacks Rank #2 and has a Growth Score of B.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2886895/5-dividend-growth-stocks-to-buy-amid-rising-inflation-risk
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.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
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Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Contact: Jim Giaquinto
Company: Zacks.com
Phone: 312-265-9268
Email: pr@zacks.com
Visit: https://www.zacks.com/
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.