14 Best Dividend Stocks to Buy for Steady Growth

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.

12. Fastenal Company (NASDAQ:FAST)

5-Year Average Dividend Growth Rate: 11.66%

On May 7, Baird raised its price recommendation on Fastenal Company (NASDAQ:FAST) to $51 from $50. It reiterated an Outperform rating on the shares. The firm updated its model after reviewing April tracker results.

During its Q1 2026 earnings call, Fastenal said the company posted a strong start to the year and recorded its third consecutive quarter of double-digit growth. President and Chief Sales Officer Jeffery Watts said daily sales increased 12.4% year-over-year to $34.9 million per day.

Watts also said total contract count climbed nearly 8% from a year earlier to more than 3,600 contracts. Those customers accounted for about 75% of first-quarter sales. He added that operating margin improved by 20 basis points year-over-year to 20.3%. Senior Executive Vice President and CFO Max Tunnicliff said gross margin came in around 40 basis points below the company’s internal Q1 target, as pricing actions did not fully offset rising costs during the quarter.

Tunnicliff also noted that operating cash flow reached about $378 million, equal to 111% of net income. He added that the company returned $296 million to shareholders during the quarter through dividends and limited share repurchases intended to offset dilution.

Fastenal Company (NASDAQ:FAST) is engaged in the wholesale distribution of industrial and construction supplies.

11. Brown & Brown, Inc. (NYSE:BRO)

5-Year Average Dividend Growth Rate: 12.21%

On May 4, Raymond James lowered its price recommendation on Brown & Brown, Inc. (NYSE:BRO) to $65 from $82. It reiterated an Outperform rating on the shares. The analyst said Brown & Brown shares had fallen sharply despite expectations for continued positive organic revenue and EPS growth through 2026 to 2028, along with strong free cash flow generation. The note added that the stock was trading at a discounted 13x 2026 P/E and an 8.8% free cash flow yield, levels that stood out compared with prior trough valuations seen during the company’s last period of negative organic growth.

On April 29, RBC Capital lowered its price goal on BRO to $72 from $76. It kept a Sector Perform rating on the stock. The analyst said the company continues to operate through a difficult macro environment and several near-term factors affecting top-line results. Even so, the Accession integration was said to remain on track to meet EBITDAC synergy targets. RBC also noted that M&A activity has been slow, though the firm expects strong share buyback totals through 2027.

Brown & Brown, Inc. (NYSE:BRO) is a diversified insurance agency, wholesale brokerage, insurance programs, and service organization. The company markets and sells insurance products and services mainly in the property, casualty, and employee benefits markets.

10. Broadcom Inc. (NASDAQ:AVGO)

5-Year Average Dividend Growth Rate: 12.60%

On May 12, Citi analyst Atif Malik raised the firm’s price target on Broadcom Inc. (NASDAQ:AVGO) to $500 from $475 and maintained a Buy rating on the shares as part of an earnings preview. Citi said stronger AI demand could help Broadcom deliver April quarter results slightly above expectations. The firm also pointed to improved earnings visibility as a reason for the higher target.

“We model Apr-Q and Jul-Q sales/EPS modestly above consensus, driven by stronger AI demand,” Malik wrote in a note to clients. He also said Broadcom’s deal with Anthropic (ANTHRO) could provide additional benefits, as the shift from rack shipments to chips may support gross margins.

Malik added that Broadcom is also in discussions with three other customers regarding custom AI chips. The company already has agreements with Google, Meta, Anthropic, and OpenAI, along with two unnamed customers, one of which is believed to be ByteDance (BDNCE).

“We believe AVGO is engaged with three additional customers on custom AI chips,” Malik added. “While it is possible for AVGO to work with companies without their own LLMs on XPUs, it believes they are unlikely to scale to the size and depth of the current engagements.”

Broadcom Inc. (NASDAQ:AVGO) designs, develops, and supplies semiconductors, enterprise software, and security solutions. The company operates through two segments: semiconductor solutions and infrastructure software.

9. McKesson Corporation (NYSE:MCK)

5-Year Average Dividend Growth Rate: 13.68%

On May 9, UBS analyst Kevin Caliendo raised the firm’s price recommendation on McKesson Corporation (NYSE:MCK) to $1,050 from $1,000. It reiterated a Buy rating on the shares. The analyst said that despite what he described as a “messy” Q4 print, the company’s initial FY27 outlook appeared “good enough,” according to a research note shared with investors.

On May 8, BofA analyst Allen Lutz lowered the firm’s price goal on McKesson to $900 from $1,000. It maintained a Buy rating on the stock. Lutz said McKesson reported “a mixed quarter,” though its FY27 guidance and reaffirmed long-range plan were viewed as positive developments. The analyst added that the lower price target reflected multiple contractions across peers.

During its fiscal Q4 2026 earnings call, Brian Tyler said the company delivered 18% growth in adjusted earnings per diluted share for fiscal 2026. He also noted that operating cash flow reached $6.2 billion, surpassing internal expectations, while McKesson returned $5.1 billion to shareholders. Tyler highlighted continued strength in specialty medications, saying the company added more than 570 providers during fiscal 2026. He also said Ambient Scribe technology is now being used by more than 1,900 providers.

Discussing patient support efforts, Tyler said the company recorded its strongest season so far by supporting a record 3.4 million patients. He also pointed to the recent launch of what he described as an industry-first integrated specialty access and affordability solution designed to reduce fragmentation that can delay treatment starts.

McKesson Corporation (NYSE:MCK) is a diversified healthcare services company focused on improving health outcomes for patients. Its U.S. Pharmaceutical segment distributes branded, generic, specialty, biosimilar, and over-the-counter pharmaceutical products and other healthcare-related items across the United States.

8. ConocoPhillips (NYSE:COP)

5-Year Average Dividend Growth Rate: 14.05%

On May 7, Freedom Broker downgraded ConocoPhillips (NYSE:COP) to Hold from Buy. It also increased the price target on the stock to $130 from $125. The firm said the downgrade was tied to valuation, noting that much of the stock’s near-term upside had already been realized.

On May 7, Reuters reported that ConocoPhillips said Norway’s energy ministry had approved development and operating plans for a project in the Greater Ekofisk area. The move is expected to increase gas deliveries to Europe. The Previously Produced Fields (PPF) project is a joint redevelopment of the Albuskjell, Vest Ekofisk, and Tommeliten Gamma fields. The project is expected to deliver between 90 million and 120 million barrels of oil equivalent in recoverable gas and condensate.

According to plans submitted to the Norwegian government in February, ConocoPhillips and its partners plan to invest around 20 billion Norwegian crowns ($2.16 billion) to restart the three fields, which were shut down in 2019. ConocoPhillips holds a 35.1% stake in Albuskjell and Vest Ekofisk, along with a 28.3% interest in Tommeliten Gamma.

ConocoPhillips (NYSE:COP) is an exploration and production company. Its Alaska segment focuses on exploring for, producing, transporting, and marketing crude oil, natural gas, and NGLs. The Lower 48 segment includes operations across the 48 contiguous U.S. states and the Gulf of Mexico.

7. Aflac Incorporated (NYSE:AFL)

5-Year Average Dividend Growth Rate: 14.97%

On May 1, Piper Sandler lowered its price recommendation on Aflac Incorporated (NYSE:AFL) to $125 from $130. It reiterated an Overweight rating on the shares. The firm said the company reported results below both its estimates and consensus expectations, mainly due to weaker performance in Japan, where the pre-tax margin came in below Piper’s projections. The firm also noted that earnings emergence remained pressured for the second straight quarter. Still, it pointed to underlying improvement in Aflac Japan’s benefit ratio, while distribution trends continued to remain strong.

During Aflac’s Q1 2026 earnings call, Chairman and CEO Daniel Amos said he was pleased with Aflac Japan’s 25.5% increase in sales during the first quarter. He explained that the growth was largely driven by the company’s newest medical insurance product, Anshin Palette, along with Miraito, its latest cancer insurance offering. He also said the company continued promoting Tsumitasu as part of its effort to attract newer and younger customers.

Speaking about Aflac US, Amos said he was encouraged by the 2.9% year-over-year increase in sales. He added that the business maintained a strong premium persistency of 79.3% and posted a 3.5% rise in net earned premium during the quarter. Amos also stated that the company returned $1.3 billion to shareholders in the first quarter through share repurchases and dividends.

Aflac Incorporated (NYSE:AFL) provides financial protection products to policyholders and customers through its subsidiaries in the United States and Japan. The company’s core business includes supplemental health and life insurance products.

6. Parker-Hannifin Corporation (NYSE:PH)

5-Year Average Dividend Growth Rate: 15.06%

On May 11, Evercore ISI lowered its price recommendation on Parker-Hannifin Corporation (NYSE:PH) to $1,064 from $1,168. It reiterated an Outperform rating on the shares.

During the fiscal Q3 2026 earnings call, Chairwoman and CEO Jennifer Parmentier described the quarter as a period of record performance, which she linked to the strength of the company’s portfolio. She highlighted record third-quarter sales of $5.5 billion, along with 6.5% organic growth and a 26.7% adjusted segment operating margin. She also said adjusted earnings per share rose 18%, while year-to-date cash flow from operations reached $2.6 billion.

Parmentier added that orders increased 9% during the quarter and noted that the company’s backlog reached a record $12.5 billion. She also said integration planning for Filtration Group had already started using the company’s established process. She further stated that the company held the leading position in the $145 billion motion and control industry, which she described as a growing market where Parker-Hannifin continued gaining share. According to Parmentier, nearly two-thirds of revenue came from customers buying four or more technologies.

Parker-Hannifin Corporation (NYSE:PH) specializes in motion and control technologies. The company designs, manufactures, and provides aftermarket support for highly engineered solutions. Its business segments include Diversified Industrial and Aerospace Systems.

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