In this article, we will take a look at the 5 Best Dividend Stocks to Buy for Steady Growth. For deeper discussion and analysis, read 14 Best Dividend Stocks to Buy for Steady Growth.
5. Lowe’s Companies, Inc. (NYSE:LOW)
5-Year Average Dividend Growth Rate: 15.35%
On May 12, Citi upgraded Lowe’s Companies, Inc. (NYSE:LOW) to Buy from Neutral and kept its price target unchanged at $285. The firm said it recommends buying some “cyclical share gainers” in the broadlines and hardlines retail group following the recent pullback in share prices. Citi expects Lowe’s to exceed Q1 consensus estimates and continue outperforming the broader industry. The analyst also said the shares look attractive in the current home improvement environment because of the company’s greater exposure to smaller projects.
On May 5, BofA reinstated Lowe’s at Neutral with a $260 price target. The firm previously had a Buy rating on the stock. According to the analyst, the risk/reward profile appears balanced at current levels since earnings growth remains limited and lacks a clear catalyst while housing activity stays subdued.
Lowe’s Companies, Inc. (NYSE:LOW) is a home improvement company. The company offers a full range of products for construction, maintenance, repair, remodeling, and decorating. Its home improvement products span several categories.
4. Canadian Natural Resources Limited (NYSE:CNQ)
5-Year Average Dividend Growth Rate: 20.94%
On May 7, Raymond James analyst Michael Barth upgraded Canadian Natural Resources Limited to Outperform from Market Perform and raised the price target to C$67 from C$65. The analyst noted that since the firm downgraded the shares in late March, the stock had fallen around 13% and underperformed its peer group by roughly 10%. He also pointed out that the stock had nearly returned to the levels seen before the Iran conflict began.
During the same period, synthetic crude oil premiums started to emerge, which the analyst described as a tailwind largely specific to Canadian Natural. That development led the firm to increase its FY26 and FY27 AFFO estimates. The analyst also said there is now better visibility into the company reaching its long-term net debt target by the end of the year while “simultaneously materially increasing shareholder returns.”
Canadian Natural Resources Limited (NYSE:CNQ) is a senior crude oil and natural gas production company. The company operates in core regions across Western Canada, the United Kingdom portion of the North Sea, and Offshore Africa.
3. Morgan Stanley (NYSE:MS)
5-Year Average Dividend Growth Rate: 23.36%
On May 8, Citi raised its price recommendation on Morgan Stanley (NYSE:MS) to $194 from $170. It reiterated a Neutral rating on the stock. The firm updated targets across the banking sector following a transfer in analyst coverage.
During Morgan Stanley’s Q1 2026 earnings call, the company described the quarter as a record period, supported by strong results in its markets and wealth management businesses. CEO and Chairman Ted Pick said the firm generated $20.6 billion in revenue and earnings per share of $3.43. Return on tangible equity reached 27%. Pick said Morgan Stanley’s integrated business model tends to perform well during periods of higher client and market activity. He also pointed to continued strength in the Wealth Management segment. The business brought in $118 billion in net new assets and $54 billion in fee-based inflows.
Pick added that the Investment Banking and Markets divisions posted record quarterly revenue of $10.7 billion, including more than $5 billion from equities. He said total client assets have now moved past $9 trillion as the firm continues working toward its long-term target of more than $10 trillion in client assets. On capital strength and regulation, Pick said Morgan Stanley reported a CET1 ratio of 15.1%, compared with a regulatory requirement of 11.8%. That left the bank with a capital buffer of more than 300 basis points. He also said the company was encouraged by what it sees as improving regulatory transparency and balance as Basel rulemaking moves closer to being finalized.
Morgan Stanley (NYSE:MS) is a global financial services company that provides investment banking, securities, wealth management, and investment management services. Its business segments include Institutional Securities, Wealth Management, and Investment Management.
2. The Goldman Sachs Group, Inc. (NYSE:GS)
5-Year Average Dividend Growth Rate: 25.3%
On May 8, Citi raised its price recommendation on The Goldman Sachs Group, Inc. (NYSE:GS) to $930 from $765, reiterating a Neutral rating on the shares. The firm updated its targets across the banking sector after a transfer in analyst coverage.
A May 8 Reuters report said Goldman Sachs reported a decline in the value of its private credit fund during the first quarter as unrealized losses and portfolio markdowns increased. Investors have started taking a closer look at private credit funds, especially business development companies, as rapid advances in artificial intelligence raise questions about the long-term outlook for some software businesses.
Goldman Sachs BDC reported a net asset value per share (NAV) of $12.17 at the end of March. That was about 3.7% lower than the previous quarter. The fund also reported a rise in non-accruals, which refers to borrowers falling behind on interest payments. Non-accruals increased to 4.7% of the loan portfolio at amortized cost, compared with 2.8% in the previous quarter. The jump suggests some added pressure within parts of the portfolio.
The Goldman Sachs Group, Inc. (NYSE:GS) is a global financial institution that provides investment banking, wealth management, securities, and investment management services to corporations, governments, financial institutions, and individuals. Its main business segments include Global Banking & Markets, Asset & Wealth Management, and Platform Solutions.
1. The Cigna Group (NYSE:CI)
5-Year Average Dividend Growth Rate: 42.4%
On May 5, Bernstein analyst Lance Wilkes raised the firm’s price recommendation on The Cigna Group (NYSE:CI) to $371 from $358. It reiterated an Outperform rating following the company’s quarterly results. The firm said it is updating its earnings model, with EPS estimates remaining largely unchanged for 2026 and moving modestly higher for the 2027 through 2030 period.
During Cigna Group’s Q1 2026 earnings call, CEO and Chair David Cordani said the company delivered strong first-quarter results. Total revenue came in at $68.5 billion, while adjusted earnings per share reached $7.79. Cordani also said Cigna raised its full-year 2026 adjusted EPS guidance to at least $30.35.
He pointed to the company’s efforts to simplify healthcare processes in the U.S. According to Cordani, Cigna removed hundreds of tests, procedures, and services from the prior authorization process. Those changes reduced the volume of medical prior authorizations by around 15%. Cordani also highlighted the launch of the company’s rebate-free pharmacy service model as part of its broader transformation efforts. He said the new offering is called Signature.
The Cigna Group (NYSE:CI) is a global health company with two operating segments: Evernorth Health Services and Cigna Healthcare.
While we acknowledge the potential of CI to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CI and that has 100x upside potential, check out our report about the cheapest AI stock.
READ NEXT: 10 Best Inflation-Hedge Stocks to Buy for 2026 and 10 Best Robinhood Stocks to Buy According to Billionaires.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
