In this article, we will take a look at some of the best dividend stocks to invest in.
Dividend growth stocks have earned a strong place in many income portfolios. Investors like them because they often hold up better when the market is under pressure, while still producing steady long-term returns.
T. Rowe Price pointed this out in its research on the Russell 1000 Index. Over the 35 years ended December 31, 2020, dividend growth stocks outperformed the broader Russell 1000 by an average of 5.88 percentage points during down markets. That downside protection matters. When markets fall, the stocks that can stay more stable help investors remain invested instead of reacting emotionally.
The long-term numbers also support the case. Over that same 35-year period, dividend growth stocks in the Russell 1000 delivered an annualized return of 11.4%, compared with 10.9% for the overall index. It’s not a dramatic gap at first glance, but over decades that extra return makes a real difference.
WisdomTree adds another useful angle. It argues that dividend growth is one of the key drivers behind long-term compounding. Looking at 50 years of data, it found that a strategy targeting the top 20% of stocks by profitability beat the bottom quintile by 409 basis points per year (11.55% vs. 7.46%). The takeaway is that profitability fuels dividend growth. When a business consistently generates strong earnings, it has more room to increase dividends year after year.
Given this, we will take a look at some of the best dividend growth stocks to invest in.
Our Methodology:
For this list, we screened for companies with a market cap above $2 billion and identified dividend stocks that have maintained consistent dividend payouts over time. From that list, we chose companies that have increased their dividends by an average of more than 14% annually over the last 5 years. The stocks are ranked in ascending order of their annual average dividend growth in the past five years.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
15. Essent Group Ltd. (NYSE:ESNT)
5-Year Average Dividend Growth Rate: 14.14%
Essent Group Ltd. (NYSE:ESNT) is among the best dividend stocks to invest in.
On January 9, JPMorgan analyst Richard Shane lifted the firm’s price target on Essent Group Ltd. (NYSE:ESNT) to $66 from $65 and kept a Neutral rating on the stock. The move came as JPMorgan updated ratings and price targets across the consumer finance group ahead of Q4 earnings. In his note, Shane pointed to fresh uncertainty tied to President Trump’s proposal that would require credit card issuers to cap interest rates at 10% for one year. He said the idea adds near-term volatility for the sector. JPMorgan warned that if such a cap were implemented, it “would fundamentally reshape the card industry,” cutting into issuer profitability and limiting credit access for consumers. Still, the firm described Trump’s post as a “high-severity, low-probability risk likely subject to significant legal challenges.” Given the backdrop, the analyst said a defensive stance in consumer finance still makes sense.
On the fundamentals side, Essent posted net income of $164 million in Q3 2025, with diluted EPS of $1.67. US mortgage insurance in force rose to $249 billion, up 2% from a year earlier, while persistency stayed solid at 86%.
Chairman and CEO Mark Casale highlighted the company’s strong capital position and said Essent had repurchased nearly 9 million shares for more than $500 million year-to-date through October 31. He also announced a new $500 million share repurchase authorization running through year-end 2027, along with a Q4 dividend of $0.31 per share.
Essent Group Ltd. (NYSE:ESNT) is a Bermuda-based holding company. Through its wholly owned subsidiaries, it provides private mortgage insurance and reinsurance, as well as title insurance and settlement services for mortgage lenders, borrowers, and investors.
14. Patrick Industries, Inc. (NASDAQ:PATK)
5-Year Average Dividend Growth Rate: 14.37%
On January 9, Truist analyst Gregory Miller raised the firm’s price target on Patrick Industries, Inc. (NASDAQ:PATK) to $126 from $114 and maintained a Buy rating on the stock. In his note, Miller said Patrick stood out in 2025, beating the broader recreation group as investors responded positively to how well the company held up despite a tougher macro backdrop.
Truist also pointed to a few areas that could support growth going forward. One is the company’s aftermarket business through RecPro, which has been gaining traction. Another is Patrick’s expanding presence in powersports, which now accounts for roughly 9%–10% of total revenue, giving the company a bigger foothold in a market with long-term potential.
In Q3 2025, Patrick reported net sales of $976 million, up 6% year-over-year. The increase was driven by steady organic growth and contributions from acquisitions, though industry-wide shipment declines continued to weigh on results. Management said revenue improved across all four of its main end markets, helped by stronger content per unit and the added boost from acquisitions.
Profitability was a bit softer compared to last year. Operating income came in at $66 million versus $74 million in the prior-year quarter, and operating margin eased to 6.8% from 8.1%. Net income was $35 million, down from $41 million a year earlier.
On the cash flow side, operating cash flow totaled $199 million year-to-date, compared with $224 million in the same period last year. Over the trailing twelve months, free cash flow was $211 million. The company also returned $13 million to shareholders through its regular quarterly dividend.
Patrick Industries, Inc. (NASDAQ:PATK) supplies component solutions to manufacturers across the RV, marine, powersports, and housing markets.
13. Radian Group Inc. (NYSE:RDN)
5-Year Average Dividend Growth Rate: 15.33%
Radian Group Inc. (NYSE:RDN) is among the best dividend stocks to invest in.
On January 2, Roth Capital reiterated its Buy rating on Radian Group Inc. (NYSE:RDN) and kept a $45 price target on the shares. The firm stated that Radian’s planned acquisition of Inigo Limited is a significant step that advances the company’s focus on specialty insurance. Roth also raised its 2025 EPS forecast to $4.25 from $4.05, pointing to Radian’s stronger-than-expected Q3 results.
Earlier, on December 10, Radian announced it had secured all regulatory approvals needed to complete the Inigo deal. Inigo is a specialty insurance group that underwrites through Lloyd’s of London. Radian said it still expects the transaction to close in February 2026, assuming the remaining standard closing conditions are met.
Management framed the acquisition as a major milestone in Radian’s longer-term strategy. The company has traditionally been known as a leading US mortgage insurer, but this deal would push it toward becoming a more global, diversified specialty insurer with multiple product lines. Radian Group Inc. (NYSE:RDN) also noted that the transaction should broaden its expertise and allow it to put excess capital to work more effectively.
After the deal closes, Inigo will operate as a Radian business unit while keeping its underwriting base in London. Radian expects the combination to blend its own financial strength, scale, and risk-management capabilities with Inigo’s specialty market experience and established performance.
Radian Group Inc. (NYSE:RDN) is a diversified mortgage and real estate services company, providing mortgage insurance along with other products and services tied to real estate and mortgage finance.
12. MGIC Investment Corporation (NYSE:MTG)
5-Year Average Dividend Growth Rate: 18.47%
Barclays made a small upward adjustment to its view on MGIC Investment Corporation (NYSE:MTG) on January 6, raising its price target to $30 from $28. The firm kept an Equal Weight rating on the stock. In its 2026 outlook, Barclays said it sees more upside potential in select consumer finance names next year. The analyst pointed to a “benign” credit environment as a helpful setup for loan growth and also expects the mortgage origination market to improve in 2026. The firm’s updated target was part of its broader sector refresh for the year ahead.
MGIC also had a strong third quarter in 2025. CEO Timothy Mattke said the company posted net income of $191 million and delivered an annualized return on equity of 14.8%. Book value per share climbed to $22.87, up 11% from the same period last year.
Shareholder returns remained a key focus as well. Mattke noted MGIC returned $980 million through dividends and share repurchases, while cutting its share count by 12%. The company also reached a major milestone, ending the quarter with more than $300 billion in insurance in force — a first for the industry.
MGIC Investment Corporation (NYSE:MTG) operates through its main subsidiary, Mortgage Guaranty Insurance Corporation, and provides mortgage insurance to lenders across the United States.
11. OneMain Holdings, Inc. (NYSE:OMF)
5-Year Average Dividend Growth Rate: 19.80%
On January 12, JPMorgan analyst Richard Shane downgraded OneMain Holdings, Inc. (NYSE:OMF) to Underweight from Neutral, while raising his price target to $65 from $59. The change came as JPMorgan updated its consumer finance ratings ahead of Q4 earnings.
In his note, Shane warned that OneMain’s customer base could run into more pressure if prices stay high and wage growth “remains muted.” He added that tighter immigration policies could offer some support for wages, particularly for hourly and blue-collar workers, but still sees the overall setup as challenging for the company’s borrowers.
In other news, Bloomberg reported on January 14 that alternative asset manager TPG Inc. is significantly expanding its loan purchases from OneMain, as private credit firms push deeper into consumer lending, an area traditionally dominated by banks.
Under a forward-flow agreement, TPG is expected to buy about $2.4 billion of OneMain’s loans on a continuing basis through June 2028, according to a statement seen by Bloomberg. That deal comes on top of the $1.3 billion the two sides had already agreed to, a TPG representative told Bloomberg. OneMain mainly focuses on personal and auto loans for non-prime borrowers.
In forward-flow arrangements like this, an asset manager agrees to buy loans before they are originated. For OneMain, it means the loans can move off the balance sheet more quickly, which helps free up capital and supports additional lending.
OneMain Holdings, Inc. (NYSE:OMF) is a financial services holding company that provides personal loans, auto financing, and credit cards. It also offers optional add-on products, runs a financial wellness program, services loans, and participates in acquisitions and asset sales.
10. Diamondback Energy, Inc. (NASDAQ:FANG)
5-Year Average Dividend Growth Rate: 21.76%
On January 13, Diamondback Energy, Inc. (NASDAQ:FANG) said it received lower prices for its oil production in the fourth quarter compared with the prior three months. Oil prices fell 9.2% during the three months ended December 31, as the market focused more on oversupply and tariff concerns than geopolitical risks. In that environment, Diamondback reported that its average realized oil price dropped to $58.00 per barrel in Q4, down from $64.60 per barrel in the prior quarter.
Natural gas pricing weakened as well. In a regulatory filing, the company said its average realized natural gas price was $1.03 per thousand cubic feet (Mcf) after hedging, compared with $1.75 per Mcf in Q3. This wasn’t just a short-term move. The broader oil market had a rough year in 2025. Brent crude futures fell about 19%, marking their biggest annual decline since 2020. It was also the third straight year of losses, the longest such streak on record. US West Texas Intermediate crude also ended the year down close to 20%.
Diamondback’s update came only days after Exxon Mobil issued a similar warning, saying weaker crude prices could reduce its quarterly upstream earnings by roughly $800 million to $1.2 billion.
Looking ahead, analysts expect Diamondback to report adjusted earnings of $2.64 per share for the fourth quarter and $12.98 per share for the full year, based on LSEG estimates.
Diamondback Energy, Inc. is an independent oil and natural gas producer focused on acquiring and developing unconventional onshore reserves, primarily in the Permian Basin in West Texas.
9. Canadian Natural Resources Limited (NYSE:CNQ)
5-Year Average Dividend Growth Rate: 21.86%
Canadian Natural Resources Limited (NYSE:CNQ) is among the best dividend stocks to invest in.
On January 6, Evercore ISI analyst Stephen Richardson downgraded Canadian Natural Resources Limited (NYSE:CNQ) to In Line from Outperform, while keeping his price target unchanged at C$50. In his note, Richardson said the company faces more risk going forward, mainly because rising capital spending could pressure the amount of cash it can return to shareholders.
Evercore said Canadian Natural is entering a major phase of organic investment and shifting more aggressively toward growth from the oil sands. The firm believes that this pivot, while strategic, could limit shareholder returns in the near term since more cash will be directed toward funding the growth program.
In other news, Reuters reported on January 14, citing The Globe and Mail, that Canadian Natural Resources Limited (NYSE:CNQ) is in talks to acquire a portfolio of natural gas assets from Tourmaline Oil Corp. valued at more than $1 billion. Competition Bureau Canada’s website showed that Canadian Natural filed paperwork on December 30 seeking approval for a transaction involving Tourmaline, though the details of the potential deal have not been publicly disclosed.
Tourmaline is one of the largest gas producers in Canada’s Montney basin, a major shale region that has seen increased deal activity as producers position for rising demand tied to Canada’s LNG export buildout. The region produces about 10 billion cubic feet of natural gas per day, roughly half of Canada’s total output.
The Globe and Mail report said Canadian Natural is seeking early regulatory feedback on a possible acquisition of Tourmaline assets in the Montney basin, located in Alberta’s Peace River region. Neither company immediately responded to requests for comment.
Canadian Natural Resources Limited (NYSE:CNQ) is a large crude oil and natural gas producer with core operations in Western Canada, the U.K. portion of the North Sea, and Offshore Africa.
8. The Goldman Sachs Group, Inc. (NYSE:GS)
5-Year Average Dividend Growth Rate: 22.8%
On January 7, HSBC slightly lowered its price target on The Goldman Sachs Group, Inc. (NYSE:GS) to $604 from $608, while keeping its Hold rating. The analyst noted that bank stocks have recently pulled back, which is creating some selective chances to add exposure. HSBC also increased its adjusted EPS estimates for 2025 and 2026 across the group by around 1% to 7%, reflecting expectations for stronger net interest income, improved investment banking fees, and higher share repurchase activity.
Goldman then reported Q4 2026 earnings on January 15 and delivered a result that beat Wall Street expectations. The quarter was powered by a pickup in dealmaking and solid trading performance, and management sounded confident about investment banking momentum going into the year ahead.
The Goldman Sachs Group, Inc. (NYSE:GS) pointed to a mix of supportive factors driving companies back into deal mode, including a friendlier regulatory tone under US President Donald Trump, lower interest rates, and a large amount of cash still sitting on corporate balance sheets. CEO David Solomon told analysts the current setup looks “incredibly constructive” for M&A and capital markets in 2026.
Investment banking fees climbed 25% from a year earlier to $2.58 billion. That was a strong jump, though it still landed slightly below the $2.66 billion analysts had expected. On the trading side, Goldman’s equity desk benefited from higher volatility and a broader market rally, as investors repositioned around the Federal Reserve’s interest rate outlook and the continued buzz around AI-related companies. Equity revenue rose to a record $4.31 billion, up from $3.45 billion a year ago. Fixed income, currencies, and commodities trading also improved, with revenue rising 12.5% to $3.11 billion.
The Goldman Sachs Group, Inc. (NYSE:GS) is a global financial institution that offers a wide range of services to corporations, governments, financial institutions, and individual clients.
7. Voya Financial, Inc. (NYSE:VOYA)
5-Year Average Dividend Growth Rate: 24.85%
Voya Financial, Inc. (NYSE:VOYA) is among the best dividend stocks to invest in.
On January 13, Wells Fargo raised its price target on Voya Financial, Inc. (NYSE:VOYA) to $86 from $80 and kept an Equal Weight rating on the stock. Heading into quarterly earnings across the insurance space, the firm said investors should watch a few key themes: pricing strength, loss trends, and reserve levels for property and casualty insurers; organic growth and margins for brokers; and sales, capital position, and forward guidance for life insurers.
Voya’s Q3 2025 results showed clear momentum. The company posted a strong quarter that supported its investor value story, with adjusted operating EPS rising nearly 30%. Free cash flow also came in strong, keeping Voya on pace to top its full-year target of $700 million.
CEO Heather Lavallee also walked through how the firm is using its capital. Voya Financial, Inc. (NYSE:VOYA) restarted share repurchases during the quarter and continued investing to strengthen its core businesses while expanding further into wealth management. By the end of the third quarter, total wealth management client assets had grown to roughly $35 billion.
Lavallee also highlighted the rollout of WealthPath, a new integrated technology platform built for advisers. She added that the company plans to expand its adviser base by more than 100 by year-end, supported by a new hub in Boston.
Voya Financial, Inc. (NYSE:VOYA) provides workplace benefits and savings solutions, along with related technology platforms. Its Wealth Solutions segment focuses on retirement plan offerings and administration services for employers.
6. Old Dominion Freight Line, Inc. (NASDAQ:ODFL)
5-Year Average Dividend Growth Rate: 30.00%
On January 13, Evercore ISI analyst Jonathan Chappell raised his price target on Old Dominion Freight Line, Inc. (NASDAQ:ODFL) to $150 from $139, while keeping an In Line rating on the stock. He said that a lot of the optimism around EPS growth over the next two years is already reflected in transport valuations, especially after the sector benefited from heavy rotation and early-cycle excitement. At the same time, he warned that if demand weakens further, it could delay a true recovery and put added pressure on earnings forecasts. In that kind of setup, stocks can also see valuation multiples compress.
That caution lines up with what the numbers have been showing. Old Dominion shares are down more than 7% over the last 12 months as freight demand has stayed soft and the company’s model has been working against it. In the third quarter, revenue fell 4.3% year-over-year to $1.41 billion. Operating income dropped 10.2% to around $361 million, and EPS declined 10.5% to $1.28.The main drag was the weaker shipment volume. Less-than-truckload (LTL) tons per day dropped 9% versus last year, driven by a 7.9% decline in shipments per day and a 1.2% decline in weight per shipment. Put simply, customers were shipping fewer loads, and those shipments were slightly lighter than before.
Still, pricing has been a bright spot. The company said LTL revenue per hundredweight (excluding fuel) increased 4.7% year-over-year. Since a “hundredweight” is just 100 pounds, this metric is basically showing that Old Dominion is earning more per unit of freight even as volumes soften. In other words, it is moving less freight, but getting paid better for what it does move.
Management credits pricing power to service quality. On the Q3 earnings call, CEO Marty Freeman pointed to a 99% on-time performance rate and a cargo claims ratio of only 0.1%, which signals very low freight damage. With consistency like that, many customers are willing to pay up for reliability.
Old Dominion Freight Line, Inc. (NASDAQ:ODFL) is a leading less-than-truckload carrier, providing regional and national LTL shipping services through a single integrated, non-union network.
5. DICK’S Sporting Goods, Inc. (NYSE:DKS)
5-Year Average Dividend Growth Rate: 31.15%
On January 5, Goldman Sachs analysts added DICK’S Sporting Goods, Inc. (NYSE:DKS) to the firm’s US Conviction List in its monthly update. Goldman said Dick’s acquisition of Foot Locker puts the company “on the front lines” of “resuscitating” the sneaker category. The firm maintained its Buy rating and kept a $285 price target on the stock.
The optimism comes even as Foot Locker is going through a messy reset. In November, DICK’S Sporting Goods, Inc. (NYSE:DKS) missed estimates for Q3 profit and warned it could take up to $750 million in charges tied to a broad review of the Foot Locker business. That review includes store closures and an aggressive inventory cleanup.
Foot Locker has been under pressure for years. It has steadily lost market share as major brands, especially Nike, expanded their direct-to-consumer sales channels. On top of that, traffic in malls, where most Foot Locker stores are located, has weakened, which has further dragged down sales.
Dick’s acquired Foot Locker for $2.4 billion in May, and management is now moving quickly to reshape what it bought. Dick’s executive chairman Ed Stack said the company was taking decisive steps to “clean out the garage” by clearing out slow-moving inventory and shutting down underperforming locations.
Those actions, along with merger and integration expenses, are expected to lead to pre-tax charges ranging from $500 million to $750 million. Excluding those items, adjusted EPS for the quarter ended November 1 came in at $2.07, well below the $2.71 consensus estimate, according to LSEG data.
Looking ahead, the company expects Foot Locker’s fourth-quarter gross margin to fall sharply, by 1,000 to 1,500 basis points. It also expects pro-forma comparable sales to decline in the mid- to high-single-digit range as it works through excess inventory.
DICK’S Sporting Goods, Inc. (NYSE:DKS) is an omni-channel sporting goods retailer, operating a large global footprint across physical stores, e-commerce, and digital platforms, with operations spanning North America, Europe, Asia, and Australia, along with licensed store presence in parts of Europe, the Middle East, and Asia.
4. Scorpio Tankers Inc. (NYSE:STNG)
5-Year Average Dividend Growth Rate: 32.28%
Scorpio Tankers Inc. (NYSE:STNG) is among the best dividend stocks to invest in.
On January 9, Bank of America downgraded Scorpio Tankers Inc. (NYSE:STNG) to Underperform from Buy and set a $53 price target. The firm said Scorpio has been locking in more time-charter agreements, which is often a sign management believes spot market rates are near a peak. BofA also pointed to the possibility of a Russia-Ukraine peace agreement in the year ahead, arguing that it could shift market dynamics and take pressure off tanker rates. With those factors in mind, the analyst said earnings look closer to peak levels and expects freight rates could trend lower from here.
In other news, on January 13, Scorpio shared an update on its liquidity, debt position, and upcoming newbuilding commitments. The company said it had $783.9 million available under its revolving credit facilities as of January 9, 2026.
Scorpio has also been active on the portfolio and asset side. Since October 28, 2025, the company sold its remaining 3,551,794 shares in DHT Holdings at an average price of $13.40 per share. It has also continued selling vessels. In November 2025, the company completed the previously announced sale of the 2020-built MR tanker STI Maestro for $42.0 million. The company also sold three 2014-built MR tankers- STI Battery, STI Venere, and STI Milwaukee- for $32.0 million each.
In early December 2025, Scorpio closed two more previously announced deals, selling the 2014-built MR tanker STI Yorkville for $32.0 million, and the 2019-built LR2 tanker STI Lobelia for $61.2 million.
Scorpio Tankers Inc. (NYSE:STNG) is a global shipping company focused on transporting refined petroleum products. It currently owns or leases 93 product tankers, including 37 LR2 vessels, 42 MR tankers, and 14 Handymax tankers, with an average fleet age of 9.8 years.
3. The Mosaic Company (NYSE:MOS)
5-Year Average Dividend Growth Rate: 34.49%
On January 14, Morgan Stanley lifted its price target on The Mosaic Company (NYSE:MOS) to $35 from $33 and kept an Equal Weight rating. The firm said it is feeling more positive on potash after running a fresh supply-and-demand check. Morgan Stanley now expects potash prices to climb moderately in 2026 versus 2025, helped by a tight global market where effective capacity utilization stays above 90% until at least 2028.
However, Mosaic’s own update a couple of days later painted a tougher near-term picture. On January 16, the company warned that fertilizer demand in North America dropped sharply in the fourth quarter, and that weakness hit both sales and cash flow. The stock slid about 4% in morning trading after the announcement.
Mosaic said demand softened because many farmers cut back on fertilizer use as budgets tightened. On top of that, winter arrived early, shortening the window for product application and limiting seasonal volumes. The phosphate side was particularly pressured. Mosaic noted that phosphate products were less affordable than potash during the quarter, which made the market especially difficult. North American phosphate shipments fell about 20% from a year ago, while potash demand held up better and was only slightly weaker.
That shift is showing up in the company’s volume expectations. The Mosaic Company (NYSE:MOS) said Q4 phosphate sales were about 1.3 million tonnes, below its earlier forecast of 1.7 million to 1.9 million tonnes. Potash sales of around 2.2 million tonnes were also below its prior range of 2.3 million to 2.6 million tonnes.
Brazil was also challenging. Mosaic said tighter credit conditions and heavier competition squeezed demand and margins, including pressure from imports of lower-analysis phosphate coming out of China. Because of that, volumes at its Mosaic Fertilizantes unit came in well below internal plans for the quarter.
For the full year 2025, Mosaic reported sales volumes of roughly 9 million tonnes, essentially flat year over year, though the company said this still reflected a broader downturn in the market. Mosaic is scheduled to release full Q4 results on February 24.
The Mosaic Company (NYSE:MOS) is a major producer and marketer of crop nutrients, with its business centered on concentrated phosphate and potash products.
2. Albertsons Companies, Inc. (NYSE:ACI)
5-Year Average Dividend Growth Rate: 43.10%
On January 8, Deutsche Bank analyst Krisztina Katai resumed coverage of Albertsons Companies, Inc. (NYSE:ACI) with a Hold rating and an $18 price target. Deutsche said it is restarting coverage across broadline and food retailers, and expects 2026 to be another “mixed year.” In the firm’s view, the setup will likely be shaped by food disinflation, reduced government benefits, and consumers continuing to focus heavily on value. While that backdrop could make things tougher even for defensive names like food retail, the analyst added that “there are tailwinds on the horizon,” including a meaningful stimulus expected in the first half of 2026.
A day earlier, on January 7, Albertsons issued its outlook and struck a cautious tone. The company forecast softer annual identical sales growth and adjusted earnings, pointing to disruptions in SNAP benefits during the third quarter and pressure building in its pharmacy business due to Medicare drug price renegotiations.
Albertsons said a short lapse in food stamp benefits in November, caused by the US government shutdown, reduced identical sales by roughly 10 to 20 basis points in Q3. The company also noted that lower Medicare drug prices, which went into effect in January, are expected to weigh on fiscal 2025 identical sales by another 16 to 18 basis points.
That said, pharmacy was not all negative. Albertsons said its pharmacy business saw strength during the quarter from demand tied to immunizations, GLP-1 therapies, and core prescriptions. That helped offset some of the weakness linked to the SNAP disruption. The company also acknowledged that consumer behavior remains strained. Albertsons said many US shoppers, especially in low- and middle-income groups, have shifted toward cheaper products and are being more selective with spending as inflation stays elevated and uncertainty lingers.
For the full year, Albertsons expects identical sales growth of 2.2% to 2.5%, which is slightly lower at the midpoint than its prior outlook of 2.2% to 2.75%. The company also guided to adjusted net income of $2.08 to $2.16 per Class A share, compared with its earlier range of $2.06 to $2.19.
Albertsons Companies, Inc. (NYSE:ACI) is a major US food and drug retailer, operating stores that sell groceries, general merchandise, health and beauty products, pharmacy services, fuel, and other essentials both in-store and through digital channels.
1. TD SYNNEX Corporation (NYSE:SNX)
5-Year Average Dividend Growth Rate: 54.43%
On January 13, Goldman Sachs analyst Katherine Murphy initiated coverage of TD SYNNEX Corporation (NYSE:SNX) with a Buy rating and a $180 price target. Goldman expects the company to keep growing at a healthy pace, projecting billings to increase 10% year-over-year in FY26. That outlook is based on about 9% growth in its core distribution business, plus roughly 15% growth in Hyve, which has become a faster-moving part of the story.
The initiation followed TD SYNNEX’s Q4 2025 earnings report on January 8, where the company delivered a strong finish to the year. Revenue came in at $17.4 billion, up 9.7% from the prior year and even topping the high end of management’s guidance. Cash generation was another standout. The company produced $1.5 billion in operating cash flow and $1.4 billion in free cash flow for the quarter.
TD SYNNEX Corporation (NYSE:SNX) also used that cash strength to reward shareholders. During the quarter, it returned $209 million to investors, including $173 million through share buybacks and $36 million in dividends. Management described the quarter as a record-setter. TD SYNNEX said non-GAAP gross billings increased 15% year-over-year, while non-GAAP diluted EPS jumped 24%, both marking new highs for the company. Leadership credited those results to the strength of its diversified business model and steady execution against its longer-term strategy.
Looking ahead, the company said it feels well-positioned for the year, supported by its specialized approach, a technology portfolio geared toward higher-growth areas, and continued emphasis on delivering strong customer experiences.
TD SYNNEX Corporation (NYSE:SNX) is a global distributor and solutions aggregator within the IT ecosystem, helping connect technology vendors with customers through distribution, services, and solutions.
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