In this article, we will take a look at the 14 Best Dividend Stocks to Buy for Steady Growth.
Investors looking for shelter from market volatility have been moving toward dividend stocks this year. According to Morningstar, nearly $22 billion flowed into dividend-focused exchange-traded funds during the first quarter of 2026. That marked the largest inflow since the second quarter of 2022.
The shift came even as the S&P 500 reached a new record on May 11. Markets have still faced turbulence this year, with investors weighing concerns tied to the Iran war, rising oil prices, and disruption from artificial intelligence. Morningstar strategist Dan Lefkovitz said investors often turn to dividend-paying companies during risk-off periods because they are viewed as relatively safer investments. At the same time, Lefkovitz said history has shown that trying to time the market rarely works. He made the following comment:
“We saw a bounce back in the broad market, and tech led that. Tech is dividend-light sector, so investors kind of mistimed their dividend stock investments.”
Instead, he said investors are generally better off taking a long-term approach and accepting that dividend stocks will move through different performance cycles. He further said:
“Over the long term, I think dividend stocks are a great way to … participate in the equity market, not just for income, but also for total return. But it’s important to do it in a risk-aware way. Stick with them and ride out the performance cycles.”
Given this, we will take a look at some of the best dividend stocks for steady growth.
Image by Steve Buissinne from Pixabay
Our Methodology:
For this list, we screened for dividend stocks with a 5-year average dividend growth rate of above 10%. From that list, we picked stocks with consistent tracks of dividend growth over the years. Finally, we picked companies that have recently reported noteworthy developments likely to impact investor sentiment. These companies are also popular among elite funds and analysts.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
14. The Sherwin-Williams Company (NYSE:SHW)
5-Year Average Dividend Growth Rate: 10.90%
On May 8, Evercore ISI analyst Greg Melich raised the firm’s price recommendation on The Sherwin-Williams Company (NYSE:SHW) to $400 from $390. It reiterated an Outperform rating on the stock.
During its Q1 2026 earnings call, Sherwin-Williams said the company delivered strong sales despite operating in what executives described as a period of global uncertainty and continued softness across most end markets. Senior Vice President James Jaye said sales exceeded guidance on a consolidated basis and across all three reportable segments.
Chairman, CEO, and President Heidi Petz said the company continued to gain market share. She added that Sherwin-Williams’ differentiation strategy was increasing the distance between the company and its competitors. According to Petz, strong revenue performance and healthy new account growth across the business reflected that momentum. Within the Paint Stores Group, Petz said the segment generated mid-single-digit growth, with both price/mix and volume increasing by low single-digit percentages. She also noted that the company’s January 1 price increase was performing slightly better than originally expected.
Discussing end markets, Petz said residential repaint activity returned to mid-single-digit growth, while property maintenance trends remained encouraging. She added that demand in new residential construction continued to face pressure, which was in line with company expectations. At the same time, the Protective & Marine business reported double-digit sales growth and marked its seventh straight quarter of high single-digit growth.
The Sherwin-Williams Company (NYSE:SHW) manufactures, develops, distributes, and sells paint, coatings, and related products to professional, industrial, commercial, and retail customers. Its operations are primarily based in North and South America, with additional business across the Caribbean, Europe, Asia, and Australia.
13. Target Corporation (NYSE:TGT)
5-Year Average Dividend Growth Rate: 10.95%
On May 12, Wells Fargo raised its price recommendation on Target Corporation (NYSE:TGT) to $140 from $135. It reiterated an Overweight rating on the shares. The firm said the setup around Target looked encouraging, with the potential for Q1 upside and a possible guidance increase, especially on sales.
The same day, Barclays analyst Seth Sigman raised the firm’s price goal on Target to $115 from $108. It kept an Underweight rating on the stock. Barclays said it sees Target “getting back to the baseline” following the sales and margin reset in 2025.
On May 10, CNBC reported that Target is expanding its baby category as part of a broader push to bring families back into stores and improve sales growth under CEO Michael Fiddelke. The retailer has launched “baby boutiques” in around 200 stores. These sections feature premium brands, display models of strollers and car seats, and nearly 2,000 new baby products.
Chief Merchandising Officer Cara Sylvester said families with young children tend to spend more and shop more frequently than the average customer, making them an important group for the company. Target also believes stronger connections with parents can help increase sales in groceries, apparel, and household essentials. The expansion comes as Target deals with rising competition from Walmart and Amazon, while its share of the U.S. baby retail market has slipped in recent years. Even with lower birth rates in the U.S., the company still views the baby category as an important part of building long-term customer loyalty and supporting its broader turnaround efforts.
Target Corporation (NYSE:TGT) is a general merchandise retailer that sells products through its stores and digital platforms. The company offers everyday essentials and differentiated merchandise at discounted prices to its customers, whom it refers to as guests.
