Back to top

Image: Bigstock

Bet on These 5 Dividend Growth Stocks as Oil Price Ticks Up

Read MoreHide Full Article

Key Takeaways

  • Janus Henderson Group projects 14% Q1 2026 revenue growth with a 3.11% dividend yield.
  • NVIDIA expects 63.1% fiscal 2027 revenue growth, backed by a 39.1% long-term earnings rate.
  • TIMB offers a 5.58% dividend yield with 11.8% revenue growth expected for 2026.

Following the Easter weekend, Wall Street is all set to enter its second week of April today, with the majority of U.S. stock index futures tiptoeing as investors continue to navigate the oil price hike and the resultant uncertainties amid the ongoing disruption in the Middle East. 

Crude prices ticked a higher note starting this week, with West Texas Intermediate futures rising 1.9% to $113.53 per barrel, while Brent crude climbed 1.3% on April 6, 2026. 

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 — Janus Henderson Group (JHG - Free Report) , Astec Industries (ASTE - Free Report) , NVIDIA (NVDA - Free Report) , Corning (GLW - Free Report) , and TIM S.A. (TIMB - Free Report) — 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.

As a result, selecting dividend-growth stocks appears to be a winning strategy when other key parameters are taken into account.

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 lower than the industry median indicates that a stock is undervalued within its industry, meaning an investor would pay less for the company’s cash flow.

52-Week Price Change Greater Than S&P 500 (Market Weight): This ensures that a stock has 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 environments.

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.

These few criteria alone narrowed the universe from more than 7,700 stocks to just 10.

Here are five of the 10 stocks that fit the bill:

London-based Janus Henderson Group is an investment management company. The Zacks Consensus Estimate for JHG’s first-quarter 2026 revenues suggests a year-over-year improvement of 14%. The stock boasts a long-term (three-to-five years) earnings growth rate of 7.8% and has an annual dividend yield of 3.11%.

JHG currently carries a Zacks Rank #2 and has a Growth Score of B. You can see the complete list of today’s Zacks #1 Rank stocks here.

Tennessee-based Astec Industries is a manufacturer and marketer of road-building equipment.. The Zacks Consensus Estimate for ASTE’s 2026 revenues suggests a year-over-year improvement of 13%. The stock boasts a long-term earnings growth rate of 7% and has an annual dividend yield of 0.94%.

ASTE currently has a Zacks Rank #2 and 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 63.1%. The stock boasts a long-term earnings growth rate of 39.1% and has an annual dividend yield of 0.02%.

NVDA currently sports a Zacks Rank #1 and has a Growth Score of B.

New York-based Corning manufactures life-changing technologies, ranging from damage-resistant cover glass to optical fiber, using materials science. The Zacks Consensus Estimate for GLW’s 2026 revenues suggests a year-over-year improvement of 9.9%. The stock boasts a long-term earnings growth rate of 20.5% and has an annual dividend yield of 0.76%.

GLW currently holds 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 5.58%.

TIMB currently holds a Zacks Rank #2 and has a Growth Score of B.
 

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.

Click Here, It's Really Free

Published in