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3 Dividend Growth Stocks Quietly Raising Payouts
Submitted by Nathan Reiff. Article Posted: 3/6/2026.
Key Points
- With dividend yields up to 0.82%, three companies not primarily known for their payouts may be a quiet defensive option for investors looking for passive income.
- Broadcom, McKesson, and Amphenol all have a track record of dividend increases as well as a recent history of share price gains and/or predicted growth in the future.
- Opting for companies paying out healthy dividends while also enjoying growth potential may allow investors to double up on opportunities to win.
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With market volatility on many investors' minds, now may be a good time to adopt a more defensive posture. Dividend stocks can be safer in difficult environments, and dividend-growth names stand out—companies with multi-year histories of dividend increases tend to operate in stable industries and are often better able to withstand external pressures.
Looking beyond the well-known Dividend Aristocrats, investors may find many other companies that offer steady dividend increases and a track record—or the potential—for future share-price appreciation. Even if the market sours, the dividend trajectories of the companies below make them worth considering for a defensive portfolio.
Broadcom: An AI Leader With Momentum and a Surprise Dividend
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See the under-the-radar play fueling AI data centersOne of the largest publicly traded companies, Broadcom Inc. (NASDAQ: AVGO) is known for its semiconductor business and its positioning in the cloud and AI races—shares have rallied more than 68% in the past year. Demand for Broadcom's AI hardware could keep fueling growth; analysts see roughly 37% upside potential even after last year's gains.
What investors may not know is that Broadcom is also a steady dividend payer with a 15-year history of raising dividends.
With a dividend yield of 0.82%, the company may not provide the highest income versus some high-yield alternatives, but the dividend is a welcome bonus for many shareholders.
AI revenue in the last year was up 60% year-over-year (YOY) and is likely to accelerate, so Broadcom appears poised to sustain momentum. Analysts are broadly bullish on AVGO shares and expect the company's earnings to grow by close to 19% in the coming year.
McKesson's Fundamentals Grow Even as Stock Price Rally May Slow
By contrast, pharmaceutical-distribution and medical-device company McKesson Corp. (NYSE: MCK) may face more difficulty sustaining its share-price gains in the short term. After rising 53% in the past year, analysts now see roughly 4% downside potential.
A near-term plateau in the share price shouldn't affect McKesson's dividends: the company has 17 consecutive years of dividend increases, making it an underappreciated healthcare dividend-growth name. Its dividend yield is modest at 0.33%, but it is highly sustainable—a payout ratio of just 9.43%.
McKesson's business is resilient thanks to diversification across oncology, biopharma, multispecialty and other healthcare categories. In Q3 fiscal 2026, which ended Dec. 31, 2025, oncology revenues climbed 37% YOY, supporting overall revenue growth of 11% for the period. Adjusted earnings per share also rose year over year, alongside strong free cash flow and ongoing share repurchases.
Perhaps most encouraging, management raised guidance for fiscal 2026, calling for 17%–19% YOY growth in adjusted EPS and 12%–16% revenue growth. Those targets suggest McKesson should continue to perform well despite external challenges.
Amphenol's Dividend Boost Reflects Its Underlying Fundamental Strength
Amphenol Corp. (NYSE: APH), a maker of fiber-optic and other cables, saw its share price mostly stabilize after dropping following its latest earnings report in early February. Although the company posted earnings and revenue gains, shares fell after management issued tepid guidance.
Amphenol does not have the same uninterrupted history of dividend increases as the companies above. It cut its dividend by about 25% in the summer of 2024, breaking a multi-year streak of increases.
However, management subsequently boosted payouts by roughly 50% a year later, and the company now carries a dividend yield of 0.74%.
Analysts expect Amphenol's earnings to grow about 12% in the coming year, and recent results make that target plausible.
The company beat analyst expectations on both earnings and revenue in the latest quarter, reporting $6.4 billion in sales, a record $8.4 billion in orders, strong margins and excellent cash flow.
3 Stocks Under $5 With Strong Analyst Upside Potential
By Chris Markoch. Published: 2/24/2026.
Key Points
- Grab Holdings is gaining analyst support as revenue growth and its first full year of profitability highlight long-term opportunity in Southeast Asia’s expanding digital economy.
- Vaxart offers speculative biotech upside with its oral vaccine platform targeting influenza, norovirus, and COVID-19, creating a high-risk, high-reward setup.
- ThredUp is positioned to benefit from the fast-growing resale market, with strong institutional ownership and industry forecasts pointing to sustained secondhand demand.
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While many investors are rotating out of speculative penny stocks, others still embrace the risk–reward tradeoff. Stocks trading below $5 carry significant risk: many are unprofitable or generate little to no revenue.
Additionally, most are small-cap companies, which have been beaten up over the past several years. Even though the Russell 2000 shows some signs of recovery, that improvement hasn't been widespread across the broader small-cap sector.
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See the under-the-radar play fueling AI data centersThat could change in 2026 if the economic outlook continues to improve. Should that happen, money may flow back into speculative names. As always, though, quality matters.
One way to filter for quality is positive analyst sentiment — which applies to the three stocks below. Each lets investors start a meaningful position with a relatively modest outlay while preserving notable upside potential over the next five years.
Profitability Milestone Meets Long-Term Emerging Market Growth
Emerging-market stocks could be winners in 2026, but so far that hasn't been true for Grab Holdings Inc. (NASDAQ: GRAB), which is down about 15% year-to-date. Based in Singapore, Grab operates a "super app" that's part technology platform, part e-commerce marketplace, and part fintech provider.
One reason for the pullback is Grab's proposed merger with Indonesian ride-share competitor GoTo. The deal isn't final and could face significant legislative changes in Indonesia that might constrain earnings potential there.
Grab also missed the top-line estimate in its Q4 2025 earnings report. For context, revenue rose 19% year-over-year, and the period marked the company's first full year of profitability. Analysts are forecasting 120% earnings growth over the next 12 months.
That helps explain why sentiment remains bullish. GRAB has a consensus price target of $6.47, roughly 54% above the current price.
High-Risk Biotech With Platform Potential
Investors in penny stocks often focus on biotechnology, a sector defined by high risk and potential reward. One company to watch is Vaxart Inc. (OTCMKTS: VXRT), the only firm on this list that meets the classic penny-stock definition — trading just over $0.60 a share at the time of writing.
VXRT lacks heavy analyst coverage; the lone analyst to rate it in the past 12 months has a Buy and a $2 price target.
Analysts often overlook small biotechs. Vaxart is a clinical-stage company — all of its candidates remain in clinical trials.
The potential upside is straightforward: Vaxart is developing oral vaccines primarily for influenza, norovirus, and COVID‑19.
Beyond convenience and avoidance of needles, Vaxart says its platform may induce a broader immune response and potentially wider protection.
Institutional ownership is only about 18%, but dollar-volume data show inflows outnumber outflows by nearly 10-to-1.
Resale Tailwinds Could Turn Today's Losses Into Tomorrow's Gains
ThredUp Inc. (NASDAQ: TDUP) is down about 33% in 2026, but a broader view helps: TDUP is up over 66% in the past 12 months. That suggests the recent decline may be a normal pullback as investors avoid companies not yet generating profits.
In ThredUp's case, add the caveat "yet." The company operates an online consignment and thrift platform gaining popularity with Gen Z, as revenue growth shows — revenue rose 12.5% year-over-year in the most recent quarter.
ThredUp cites a GlobalData 2025 market survey forecasting the U.S. secondhand market's gross merchandise value to grow at a 9% compound annual growth rate through 2029.
Institutions own an impressive 89% of TDUP. Buying has outpaced selling roughly two-to-one by dollar volume and three-to-one by the number of buyers versus sellers. However, short interest around 17% adds near-term volatility.
The six-analyst consensus price target is $12.50, implying more than 190% upside from the current price.
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