10 Dividend Growth Stocks: September 2026

The monthly dividend-growth screen identifies 10 stocks with at least 25 consecutive years of dividend increases and five-year dividend growth rates above 8%. The selections are positioned as high quality: 94% are investment grade and all score above 7.9 on the author's 9F Quality Score. The article is a stock-selection screen rather than a company-specific catalyst, limiting broad market impact.

Analysis

This is a low-information factor-screen signal rather than a company-specific catalyst, so it does not justify directional exposure by itself. The likely near-term effect is limited to incremental retail demand for established dividend-growth equities; institutional flows will be driven more by Treasury yields, earnings revisions, and relative valuation than by the longevity of payout increases. A 25-year dividend record can also create false defensiveness where payout ratios are rising or buyback capacity is weakening.

The relevant market mechanism is rate sensitivity: if the long end rallies over the next 1-3 months, quality dividend compounders can see multiple expansion versus cyclicals and low-quality yield equities. Conversely, a renewed move higher in real yields would pressure these stocks despite dividend-growth credentials, particularly crowded consumer staples, regulated utilities, and mature industrials. The more durable 6-18 month opportunity is in companies able to fund dividends and repurchases from organic free cash flow while maintaining reinvestment returns—not those using leverage or underinvestment to preserve a screening metric.

Contrarian view: dividend-growth screens often lag turning points because they reward historical consistency rather than forward earnings durability. The better signal is positive forward FCF-estimate revisions combined with a stable or declining payout ratio; absent that confirmation, broad exposure risks paying a quality premium for slowing growth. No standalone trade is warranted without the underlying constituents, valuations, payout ratios, and earnings-revision data.

Key Decisions for Investors

• No immediate directional trade from this screen; request the 10 constituents, forward P/E, EV/FCF, net-debt/EBITDA, payout ratios, and 12-month EPS/FCF revisions before allocating capital.
• For a 1-3 month rates-driven expression, monitor a long SCHD versus short SPY pair only if the US 10-year yield breaks materially lower and SCHD constituents show stable forward EPS revisions; invalidate if the 10-year yield reverses higher or relative performance fails after the yield move.
• Screen existing dividend holdings for payout ratio expansion and negative forward FCF revisions; reduce names where dividend growth is outpacing sustainable FCF growth, even if their historical increase streak remains intact.
• Favor individual quality compounders over a generic dividend basket only where dividend growth is covered by organic FCF and net leverage is stable; avoid treating investment-grade status as sufficient protection against multiple compression.