▌Top Stocks · DIVIDEND GROWTH·Updated June 3, 2026
Dividend Growth Stocks to Own in 2026: 7 Names with Quality
These seven dividend growth stocks pair durable businesses, solid profitability, and consistent execution, with Procter & Gamble ranking as the strongest overall quality pick.
Dividend growth remains compelling in June 2026 because investors are still rewarding companies that can produce durable cash flows, defend pricing, and keep balance sheets resilient in a higher-rate environment. That backdrop matters for income-focused investors: the most attractive dividend stories are not always the highest-yielding stocks, but the businesses that can keep raising payouts while still funding buybacks, capital spending, and long-term expansion. Recent payout actions from large-cap franchises across staples, restaurants, and healthcare reinforce the point that management confidence still shows up clearly in dividend policy.
The structural case is also broad. Aging demographics support healthcare demand, while steady household consumption underpins staples and branded food-and-beverage names. In this theme, investors should separate payout yield from payout growth. The strongest candidates usually pair moderate current income with recurring revenue, low cyclicality, strong operating margins, and enough earnings power to keep annual increases going through mixed macro conditions. That is why this list leans toward large, established franchises with global scale, category leadership, and evidence of disciplined capital allocation rather than simply screening for the highest headline yield.
Below, the picks are ranked in countdown order from No. 7 to No. 1 based on overall investment quality within the dividend-growth theme. The lower-ranked names still have credible dividend-growth profiles, but they carry more valuation, leverage, or earnings-consistency tradeoffs. As the list moves toward the top, the balance of business durability, profitability, growth, and execution improves.
For this screen, we focused on U.S.-listed companies with market capitalizations above $500 million and then emphasized businesses that fit the dividend-growth profile: durable end markets, strong profitability, reasonable earnings visibility, and supportive analyst sentiment. We ranked the final seven primarily by investment quality using our composite grade alongside margins, growth trends, earnings consistency, and valuation context. This is a countdown, so the best overall pick appears last at No. 1 rather than first.
What they do. PepsiCo manufactures, markets, distributes, and sells beverages and convenient foods worldwide through six segments spanning North America and international markets. Its portfolio reaches from soft drinks and ready-to-drink tea and coffee to cereals, chips, granola bars, pasta, rice, dips, and sparkling water systems, giving it a broad consumer staples footprint and multiple routes to recurring demand.
Why it fits. PepsiCo fits a dividend-growth list because it combines everyday consumption categories with global distribution and a mix of beverages and snacks that can help smooth category-specific volatility. The theme context is especially relevant here because PepsiCo announced a 4% increase in its annualized dividend to $5.92 per share in February 2026, signaling continued confidence in cash generation even as it maintains investment across a large operating platform.
Numbers that matter. PepsiCo generated $95.45 billion in revenue and $18.70 billion in EBITDA, with a 54.4% gross margin, 16.96% operating margin, and 9.15% net margin. Revenue grew 8.5% year over year and earnings grew 27.8%, while trailing EPS was $6.38 and next-year EPS is estimated at $9.1475. Valuation is not especially cheap at 22.26 times trailing earnings, though the forward P/E of 16.45 suggests some earnings normalization. The main quality offset is leverage, with our composite inputs showing a weak debt-equity component despite strong ROE and ROA scores.
Recent momentum. PepsiCo has beaten earnings estimates in 4 of its last 7 reported quarters. Most recently, it delivered EPS of $1.61 versus a $1.55 estimate on April 16, 2026, a 3.9% beat, after a smaller 0.9% beat in February. Analyst sentiment is cautious rather than bullish, with 2 Buy ratings and 16 Hold ratings, which helps explain why this stock lands at the bottom of the ranking despite its durable franchise.
What they do. Coca-Cola manufactures and sells nonalcoholic beverages globally, spanning sparkling soft drinks, water, sports drinks, coffee, tea, juice, dairy, and plant-based beverages. Its model is strengthened by a vast network of independent bottling partners, distributors, wholesalers, and retailers, which gives the company exceptional brand reach and recurring demand across geographies.
Why it fits. Coca-Cola is a classic dividend-growth candidate because beverage consumption is steady, the brand portfolio is global, and the asset-light concentrate model supports cash generation. The backdrop for this theme was reinforced in 2026 when Coca-Cola approved its 64th consecutive annual dividend increase, underscoring how management continues to prioritize payout growth alongside operating discipline.
Numbers that matter. Coca-Cola produced $49.28 billion in revenue and $16.71 billion in EBITDA, with standout profitability: 61.7% gross margin, 35.06% operating margin, and 27.8% net margin. Revenue grew 12.1% year over year and earnings grew 18.2%, while trailing EPS was $3.18 and next-year EPS is estimated at $3.4836. The tradeoff is valuation, with the stock at 24.66 times trailing earnings and 24.15 times forward earnings, so investors are paying a premium for consistency.
Recent momentum. Execution has been excellent. Coca-Cola has beaten earnings estimates in 7 straight reported quarters, including EPS of $0.86 versus a $0.81 estimate on April 28, 2026, a 6.2% surprise. Analysts are also more constructive here than on many staples peers, with 8 Buy ratings, 3 Holds, and 1 Sell, which supports its higher placement in the ranking.
What they do. McDonald’s owns, operates, and franchises restaurants under the McDonald’s brand across the U.S. and international markets. Its business model is anchored by a large franchised base, which supports recurring fee and rent-like economics while the brand’s scale and convenience position help it maintain traffic across a wide range of consumer environments.
Why it fits. Even though it sits in consumer discretionary, McDonald’s often behaves more defensively than much of the sector because of its value positioning, global footprint, and franchise-heavy model. That stability matters for dividend growth, and the company reinforced the case by raising its quarterly cash dividend by 5% in October 2025.
Numbers that matter. McDonald’s generated $27.45 billion in revenue and $14.87 billion in EBITDA, with exceptional margins including 57.3% gross margin, 44.25% operating margin, and 31.62% net margin. Revenue grew 9.4% year over year and earnings grew 6.9%, while trailing EPS was $12.12 and next-year EPS is estimated at $14.2215. The stock trades at 22.80 times trailing earnings and 21.23 times forward earnings, which is not excessive for a franchise with this margin profile, but the composite quality grade is held back by balance-sheet and valuation factors.
Recent momentum. McDonald’s has beaten estimates in 4 of its last 7 quarters. The latest report was constructive, with EPS of $2.83 versus a $2.74 estimate on May 7, 2026, a 3.3% beat, following another beat in February. Analysts lean positive but not aggressively so, with 6 Buy ratings and 15 Holds, suggesting broad respect for the business but some caution on upside after years of premium positioning.
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What they do. AbbVie is a research-based biopharmaceutical company with a portfolio spanning immunology, oncology, neuroscience, aesthetics, eye care, and gastrointestinal therapies. Its revenue base is diversified across products such as Skyrizi, Rinvoq, Venclexta, Botox, Vraylar, Ubrelvy, Qulipta, and other branded medicines and therapeutic products sold globally.
Why it fits. AbbVie fits the dividend-growth theme because healthcare demand is less cyclical than most sectors, and branded pharmaceuticals can produce strong cash flows when product portfolios are broad enough to manage patent transitions. Its mix of immunology, neuroscience, oncology, and aesthetics gives it several engines to support future payout growth, even though drug-specific execution risk is always part of the story.
Numbers that matter. AbbVie reported $62.82 billion in revenue and $29.92 billion in EBITDA, with a 72.0% gross margin and 32.16% operating margin. Revenue grew 12.4% year over year, but earnings growth was negative 46.2%, and net margin was just 5.79%, which helps explain the unusually high 105.07 trailing P/E. The forward P/E of 14.95 looks much more reasonable against next-year EPS estimates of $16.2298, implying analysts expect a sharp rebound from trailing EPS of about $2.05.
Recent momentum. AbbVie has beaten estimates in 6 of its last 7 quarters, though the latest report was a slight miss: EPS of $2.65 versus a $2.67 estimate on April 29, 2026, or negative 0.7%. Before that, it posted five straight beats. Analyst sentiment remains constructive overall, with 4 Buy ratings and 12 Holds, reflecting confidence in the portfolio but some caution around earnings normalization and leverage.
What they do. Amgen discovers, develops, manufactures, and delivers therapeutics worldwide, with major products spanning inflammation, bone health, cardiovascular disease, oncology, nephrology, and rare disease. Its lineup includes Enbrel, Otezla, Prolia, Repatha, XGEVA, BLINCYTO, TEPEZZA, KRYSTEXXA, and other established biologic and specialty medicines sold through healthcare providers and pharmaceutical distributors.
Why it fits. Amgen belongs on a dividend-growth list because large biopharma can pair recurring demand with high margins and substantial free-cash-flow potential. The company’s breadth across chronic and specialty therapies makes it less dependent on any single end market, which is valuable when investors want resilient healthcare cash flows rather than economically sensitive payout stories.
Numbers that matter. Amgen generated $37.22 billion in revenue and $16.92 billion in EBITDA, with a 71.4% gross margin, 33.8% operating margin, and 20.96% net margin. Revenue grew 5.8% year over year and earnings grew 4.4%, while trailing EPS was $14.38 and next-year EPS is estimated at $23.4771. Valuation looks more appealing than some peers at 22.83 times trailing earnings and 14.79 times forward earnings, and the company also posts very strong profitability metrics, including ROA of 8.35% and ROE above 100%.
Recent momentum. Amgen has beaten earnings estimates in 6 of its last 7 quarters. The last two reports were especially strong, with EPS of $5.15 versus $4.77 in April 2026, an 8.0% beat, and EPS of $5.29 versus $4.73 in February, an 11.8% beat. Analysts are more mixed than the operating profile might suggest, with 5 Buy ratings, 14 Holds, and 1 Sell, but the company’s earnings consistency still earns it a top-three spot.
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This list was built from a universe of U.S.-listed stocks with market capitalizations above $500 million and then narrowed to companies that fit a dividend-growth profile. We emphasized business durability, profitability, earnings consistency, growth trends, analyst sentiment, and our composite quality grade rather than simply screening for the highest current yield. Rankings were then arranged in countdown order from No. 7 to No. 1 based on overall investment quality within the theme. The list is designed for monthly refreshes, so spot prices can change, but the core fundamentals and ranking logic are intended to remain the anchor.
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