_{First a message from our friends at The Oxford Club (sponsor)}

Today, you can claim the Ultimate Dividend Package...

For FREE. (No credit card required!)

Inside, Marc Lichtenfeld – bestselling author of Get Rich with Dividends and world-renowned income expert – is giving away his top dividend picks for 2026.

You'll get details on...

Click here to get your FREE Ultimate Dividend Package!

Sincerely,

Rachel Gearhart
Associate Publisher, The Oxford Club

In a market where narrative momentum often dominates headlines, a quieter but equally powerful rotation is taking place — into dividend growers that combine accelerating payouts with real cash-flow backing.

Gone are the days when dividend stocks were synonymous with sleepy income plays. Today, dividend growth — especially when backed by expanding free cash flow and strong earnings — signals confidence, capital discipline, and durable business models. For active traders, the names that raise dividends most aggressively can be sources of both relative strength and event-driven volatility.

In this 2,000-plus word deep dive, we analyze five companies whose dividend growth metrics are drawing trader attention. We’ll look at both the raw data — yield, payout ratios, growth rates — and the structural reasons active traders are watching these names as tactical opportunities.

The five names we examine are:

Each represents a different sector, yet all share above-average dividend growth — and all have characteristics that can drive short-to-mid-term trading interest.

Broadcom’s dividend story is one of growth backed by substantial cash generation. In December 2025 the company announced a 10% increase in its quarterly dividend to $0.65 per share, representing a $2.60 annualized payout for fiscal 2026, supported by record free cash flow in fiscal year 2025.

While its dividend yield of roughly 0.8% is modest relative to traditional income names, the growth rate tells a more compelling story. Over the past 12 months, Broadcom’s dividends per share have grown at an 11.5% rate, and the longer-term average over five years is similar, near 12.6% annualized, well above sector averages.

Broadcom’s robust cash flow performance helps explain this trend. In fiscal 2025, the company generated approximately $26.9 billion in free cash flow, which management linked to its dividend increase. The payout ratio — roughly 48–50% of earnings — suggests sustainability without overleveraging the business.

For active traders, Broadcom’s dividend trajectory intersects with its AI infrastructure role. AI-related semi revenue and its software assets provide recurring revenue and cash generation. That means dividend growth is less about static yield and more about expanding shareholder returns in a growth context, which can amplify moves around earnings, AI demand updates, or guidance shifts.

Key metrics:

Active trader angle: Broadcom’s relative strength in tech, combined with dividend growth, attracts rotation out of high-beta names when yield metrics are repriced. Breakouts on earnings or guidance with dividend reassurance often lead to multi-session moves.

AbbVie stands out as a classic dividend growth name with a long history of increasing payouts. According to dividend history data, AbbVie has raised its dividend for over five decades, underscoring cash flow durability. In 2025 the company paid dividends totaling approximately $6.92 per share, with a forward yield near 2.99%.

Over multiple periods, AbbVie’s dividend growth is robust. Dividend per share growth over the past 12 months was roughly 5.7%, with longer horizons showing higher compound annual growth rates. Better still, AbbVie’s free cash flow growth and earnings expansion outpace sector medians, reflecting strong profitability and payout support.

AbbVie’s yield and growth are meaningful not only for income but also for trader positioning. Healthcare stocks often serve as defensive assets during market volatility. AbbVie’s consistent dividend increases provide a floor around corrections, while its product pipeline and EPS trends influence tactical rotations.

However, it’s important to recognize risks. Healthcare policy, pricing pressures, and competitive pipelines can influence near-term performance. Nonetheless, AbbVie’s dividend track record and recent increases signal management confidence in cash flow, making it a dividend growth proxy with relative stability.

Key metrics:

Active trader angle: AbbVie often becomes a safe harbor trade during market turbulence. Traders watch how divergences between healthcare yields and bond yields compress or widen, and where AbbVie’s stock trades relative to historical support around its ex-dividend dates.

Texas Instruments is notable in the semiconductor space for its focus on shareholder returns, particularly dividend growth, which uncommon among its peers. While TI’s dividend yield typically sits below traditional income stocks, its free cash flow trajectory and payout trend attract active attention because it combines growth with yield.

Texas Instruments has been under pressure historically to improve free cash flow performance. In response, activist investors pushed for strategic adjustments to enhance capital returns. The company now projects free cash flow per share between $8 and $12 by 2026, up from lower figures earlier in the cycle.

This projected cash flow improvement matters because dividend growth — in a capital-intensive sector like semiconductors — must align with underlying operational performance. The expectation of rising FCF suggests that Texas Instruments could continue increasing dividends without stretching its balance sheet.

Active traders also track how management allocates cash between dividends and buybacks. Texas Instruments has a history of returning capital while also addressing structural cash flow improvement, making it a dividend growth play with technical breakout potential when earnings surprises or capacity updates hit the tape.

Key dividend dynamics:

Active trader angle: TXN’s combination of yield growth and operational turnaround narratives creates volatile reactions around earnings and free cash flow guidance, useful for tactical setups without traditional momentum.

Energy stocks may seem cyclical, but ConocoPhillips has established a disciplined strategy around capital allocation and shareholder return growth, including dividend increases and buybacks.

In its full-year 2025 results, ConocoPhillips declared a quarterly dividend of $0.84 per share for 2026, reflecting an increase from its prior payout. According to dividend metrics, COP’s annual dividend yield sits above 3.0%, with total yearly payouts of about $3.36 per share.

More significantly for traders, ConocoPhillips has delivered dividend growth above sector medians, with a 3-year dividend CAGR near 18% and a 5-year CAGR above 15%, apart from shorter-term fluctuations. Such growth often attracts rotation when energy prices rebound or remain stable, because it suggests meaningful cash returns alongside commodity-driven earnings.

ConocoPhillips’ dividend is supported by strategic cost reductions, project integrations (like Marathon Oil), and targeted capital expenditures aimed at maximizing free cash flow that can be returned to shareholders.

Key metrics:

Active trader angle: Energy dividend names like COP become tactical plays when crude price volatility expands or when sector rotation favors value. Volume spikes often accompany ex-dividend reactions or production guidance changes.

Telecom infrastructure stocks often rank high among dividend payers due to predictable cash flows from subscription models and established billing structures. Verizon sits in this category and remains a staple in many yield-oriented universes.

Verizon currently exhibits one of the higher dividend yields within the S&P 500, with forward yields above 6%, placing it among the top yielding large caps. The yield has persisted due to a combination of stable service revenue, solid free cash flow, and share price compression in broader tech selloffs.

Importantly for active traders, defensive sectors including telecom often outperform or hold up better during macro rotations out of growth cyclicals. Verizon’s consistent dividend coverage and long payment history make it a preferred trade when yield differentials versus bonds attract demand.

Key dynamics:

Active trader angle: Traders can use Verizon’s ex-dividend dates and relative strength compared to sector averages as triggers for tactical entries, especially when yield spreads tighten against fixed income benchmarks.

Dividend growth matters not because it guarantees future payouts, but because it signals confidence and capital discipline. Companies that raise dividends — especially in environments where cash flow generation is challenged — are telling the market something about their outlook.

For active traders, the names highlighted above offer:

Whether via ex-dividend reactions, earnings releases, or macro rotations, these names can exhibit tradable patterns around their dividend stories.

For those looking to craft setups around these names, consider the following:

Yield support as a level: Rising dividends can create support zones around ex-dividend drops.
Relative sector play: Compare dividend growers to peers during rotations.
Event volatility: Earnings and guidance moments often amplify dividend narratives.
Volume validation: Confirm setups with relative volume above averages.

_{This commentary is for informational and educational purposes only and does not constitute investment advice. All market strategies involve risk, and past performance is not indicative of future results. Readers should conduct their own analysis or consult a licensed financial professional before making investment decisions.}