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Five dividend growth stocks identified for stability amid geopolitical uncertainty.
These firms show solid revenues, EPS growth, and consistent dividend increases for stability.
All three major U.S. stock indices ended on a positive note in the previous session, following the U.S. President’s decision to extend the ceasefire with Iran. Upbeat first-quarter earnings from industry leaders such as Boeing and GE Vernova further supported investor sentiment, helping the S&P 500 gain more than 1% in the latest trading session.
This may provide the necessary momentum for investors, many of whom had recently shifted toward safe-haven assets such as gold amid fears of prolonged conflict, to re-enter the equity markets.
However, given the persistent fragility of the global geopolitical landscape, risk-averse investors may find that steady dividend-growth stocks offer a more prudent balance of income and stability than high-beta growth plays, at this juncture.
These dividend-growth stocks 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.
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 seven.
Here are five of the seven stocks that fit the bill:
Indiana-based Cummins is a designer, manufacturer, and distributor of diesel and natural gas engines and powertrain-related component products like fuel systems, turbochargers, transmissions, batteries, and electrified power systems. The Zacks Consensus Estimate for CMI’s 2026 revenues suggests a year-over-year improvement of 5.6%. The stock boasts a long-term (three-to-five years) earnings growth rate of 12.10%. It has an annual dividend yield of 1.25%.
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 11.9%. The stock boasts a long-term earnings growth rate of 22.10%. It has an annual dividend yield of 0.66%.
GLW currently holds a Zacks Rank #2 and a Growth Score of B.
Massachusetts-based Analog Devices is an original equipment manufacturer of semiconductor devices, specifically, analog, mixed signal, and digital signal processing (DSP) integrated circuits. The Zacks Consensus Estimate for ADI’s fiscal 2026 revenues suggests a year-over-year improvement of 26.3%. The stock boasts a long-term earnings growth rate of 21.90%. It has an annual dividend yield of 1.15%.
ADI currently has a Zacks Rank #2 and a Growth Score of B.
Connecticut-based Amphenol Corp. designs, manufactures and markets electrical, electronic and fiber optic connectors, interconnect systems, antennas, sensors and sensor-based products and coaxial and high-speed specialty cable. The Zacks Consensus Estimate for APH’s 2026 revenues suggests a year-over-year improvement of 36%. The stock boasts a long-term earnings growth rate of 22.20% and has an annual dividend yield of 0.68%.
APH currently carries a Zacks Rank #2 and a Growth Score of B.
New York-based Morgan Stanley is a global financial services firm that advises, originates, trades, manages, and distributes capital for governments, institutions and individuals. The Zacks Consensus Estimate for MS’ 2026 revenues suggests a year-over-year improvement of 8.3%. The stock boasts a long-term earnings growth rate of 11.20%. It has an annual dividend yield of 2.09%.
MS currently holds a Zacks Rank #2 and a Growth Score of B.
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5 Dividend Growth Stocks to Buy Amid Extended US Ceasefire With Iran
Key Takeaways
All three major U.S. stock indices ended on a positive note in the previous session, following the U.S. President’s decision to extend the ceasefire with Iran. Upbeat first-quarter earnings from industry leaders such as Boeing and GE Vernova further supported investor sentiment, helping the S&P 500 gain more than 1% in the latest trading session.
This may provide the necessary momentum for investors, many of whom had recently shifted toward safe-haven assets such as gold amid fears of prolonged conflict, to re-enter the equity markets.
However, given the persistent fragility of the global geopolitical landscape, risk-averse investors may find that steady dividend-growth stocks offer a more prudent balance of income and stability than high-beta growth plays, at this juncture.
These dividend-growth stocks 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 — Cummins Inc. (CMI - Free Report) , Corning (GLW - Free Report) , Analog Devices (ADI - Free Report) , Amphenol Corp. (APH - Free Report) , and Morgan Stanley (MS - 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 seven.
Here are five of the seven stocks that fit the bill:
Indiana-based Cummins is a designer, manufacturer, and distributor of diesel and natural gas engines and powertrain-related component products like fuel systems, turbochargers, transmissions, batteries, and electrified power systems. The Zacks Consensus Estimate for CMI’s 2026 revenues suggests a year-over-year improvement of 5.6%. The stock boasts a long-term (three-to-five years) earnings growth rate of 12.10%. It has an annual dividend yield of 1.25%.
CMI 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.
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 11.9%. The stock boasts a long-term earnings growth rate of 22.10%. It has an annual dividend yield of 0.66%.
GLW currently holds a Zacks Rank #2 and a Growth Score of B.
Massachusetts-based Analog Devices is an original equipment manufacturer of semiconductor devices, specifically, analog, mixed signal, and digital signal processing (DSP) integrated circuits. The Zacks Consensus Estimate for ADI’s fiscal 2026 revenues suggests a year-over-year improvement of 26.3%. The stock boasts a long-term earnings growth rate of 21.90%. It has an annual dividend yield of 1.15%.
ADI currently has a Zacks Rank #2 and a Growth Score of B.
Connecticut-based Amphenol Corp. designs, manufactures and markets electrical, electronic and fiber optic connectors, interconnect systems, antennas, sensors and sensor-based products and coaxial and high-speed specialty cable. The Zacks Consensus Estimate for APH’s 2026 revenues suggests a year-over-year improvement of 36%. The stock boasts a long-term earnings growth rate of 22.20% and has an annual dividend yield of 0.68%.
APH currently carries a Zacks Rank #2 and a Growth Score of B.
New York-based Morgan Stanley is a global financial services firm that advises, originates, trades, manages, and distributes capital for governments, institutions and individuals. The Zacks Consensus Estimate for MS’ 2026 revenues suggests a year-over-year improvement of 8.3%. The stock boasts a long-term earnings growth rate of 11.20%. It has an annual dividend yield of 2.09%.
MS currently holds a Zacks Rank #2 and a Growth Score of B.