Those chasing quick profits may still seek out AI and technology companies, although frequent calls for an AI bubble may dampen sentiment. Couple the uncertainty about the future of this fast-growing industry with concerns about inflation and the high rate of profits across markets with only a small number of big movers, and it's easy to see why investors might be looking for a more stable alternative.
Enter dividend growth stocks, which benefit from rising distributions even if share price appreciation is low. Investors looking for flashy returns may dismiss this category of stocks as “boring,” but there's a reason why dividend exchange-traded funds (ETFs) have garnered increasing attention: companies whose dividends are likely to continue to grow tend to be more stable, able to withstand market turbulence that many new or fast-growing options cannot. The firms below are not the smoothest but have a strong track record of profitable growth and offer attractive diversification across industries.
Aflac's US Business Offers Stability, While Japan Has Opportunities for Growth
Aflac's dividend payout
- Dividend Yield
- 1.97%
- Annual Assignments
- $2.44
- Dividend Raise Record
- 44 years
- 5 Year Annualized Profit Growth
- 15.68%
- Dividend payout ratio
- 27.70%
- Late Refund Payment
- June 1
History of AFL Allocations
Although Aflac's US business did not reach the same level of growth in the last quarter (sales increased by about 3% YOY), its persistence is high at 79.3%. The company has a stable American business that has remained undeterred by industry-wide challenges such as cost overruns and coverage gaps. In addition, the approximately $3.4 billion in liquidity available as of Q1 allowed Aflac both the flexibility to ride out the turmoil and the ability to return additional value to shareholders through both buybacks and dividends.
Although Wall Street views AFL shares as an overall Hold, the company's strong record of dividend increases continues to make it a popular option for income. AFL supports a dividend yield of 1.97% with more than four decades of dividend increases, including a recent 5.2% increase for Q1 2026.
Caterpillar Data Center Business Growth May Outpace Tax Concerns
Caterpillar Dividend Payments
- Dividend Yield
- 0.72%
- Annual Assignments
- $6.52
- Dividend Raise Record
- 30 years
- 5 Year Annualized Profit Growth
- 7.23%
- Dividend payout ratio
- 32.45%
- Payment of Subsequent Dividends
- August 19
CAT Dividend History
This crisis contributed to a 22% YOY improvement in the first quarter of the year, a 30% YOY gain in adjusted earnings per share (EPS), and a dramatic increase in backlog. These performance metrics are an encouraging sign that the company will be able to meet high sales growth and adjusted operating margin goals, despite hundreds of millions of dollars in quarterly pricing-related costs and slow growth in key client industries.
Even with valuation concerns (CAT has a price-to-earnings ratio of nearly 44), analysts rate the stock at Average Buy, with 15 Buys and 10 Holds. paid dividends of 0.70% compared to 0.75% compared to the previous trading day.
Semiconductor Structure and Solid History of Isolation
Texas Instruments Dividend Payments
- Dividend Yield
- 1.92%
- Annual Assignments
- $5.68
- Dividend Raise Record
- 21 years
- 5 Year Annualized Profit Growth
- 8.13%
- Dividend payout ratio
- 97.26%
- Upcoming Ex-Dividend Date
- July. 31
History of TXN shares
A semiconductor and analog circuit company with a high dividend, Texas Instruments Inc. NASDAQ: TXN it stands out in comparison to its more growth-oriented peers.
The company has solidified its position as a pick-and-shovel player in the AI space thanks to power management chips, which helped revenue grow by 19% YOY last quarter. Data center revenue increased nearly 90% during that period, creating optimistic revenue and earnings guidance.
TXN is also able to achieve top-line growth while generating significant cash flow of up to $1.5 billion and close to $1 billion in CHIPS earnings in Q1 alone. But what sets this company apart is its 2% dividend yield, backed by more than two decades of strong dividend growth. Analysts warning that some potential downside might exist—and advising that TXN shares are a Hold—could undermine the company's appeal as a source of income.
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