#dividend-growth

#dividend-growth

Clorox ( NYSE: CLX | CLX Price Prediction) spent the past 10 years doing what consumer staples are supposed to do: pay reliably, raise dividends annually, and grind through cycles. The pandemic briefly turned cleaning brands into pantry essentials, sending shares above prior highs. Then came margin compression, a 2023 cyberattack, and an ambitious $580 million ERP overhaul that the company finished rolling out in winter of FY2026.

Occidental's operational story is strong, with Q4 2025 production hitting 1,481 thousand barrels of oil equivalent per day, exceeding guidance, and the Permian Basin setting a record at 800 Mboed in Q3 2025.

The $0.45 per share payment marks the eighth consecutive annual dividend increase since VICI's 2018 IPO. The most recent raise represented a 4.0% year-over-year increase from the prior quarterly rate of $0.4325 per share.

Wells Fargo's revised thesis centers on Vietnam production sharing contract modeling refined through recent webinar insights, reinforcing long-term offshore value even as the firm acknowledges the opportunity remains long dated and valuation stays anchored to near-term cash flow.

The symbiotic relationship between Diamondback and Viper is highlighted during times like these where Diamondback continues to focus its development on wells where Viper owns high royalty interests. That structural advantage doesn't erode with oil prices.

Chevron delivered record worldwide production of 4,045 MBOED in 2025, up 12% year-over-year, giving it more barrels to sell into a recovering price environment. Operating cash flow hit $33.9 billion for the full year, covering the $12.8 billion dividend payout by roughly 2.7 times, a cushion that makes a dividend cut look unlikely even in a moderate oil price downturn.

Scorpio Tankers has moved from $3.1 billion in net debt in 2021 to a net cash position of roughly $332 million as of early 2026. That shift changes what kind of stock this actually is. Reddit sentiment sits at 90.8 out of 100, firmly 'very bullish.' The catch: that score is driven almost entirely by one speculative post, not a broad income thesis.

Lowe's paid its latest quarterly dividend of $1.20 per share on February 4, 2026, marking another milestone in the home improvement retailer's 65-year streak of consecutive dividend increases. With shares trading at $291.07 as of February 12, 2026, the current quarterly payout translates to a 1.65% annual yield. While that figure trails the broader market's income opportunities, Lowe's dividend story deserves closer examination beyond the headline number.

The biggest macro factor affecting DGRO in 2026 is the Federal Reserve's rate-cutting trajectory. After holding rates elevated through much of 2025, the Fed resumed cuts in September. Lower rates typically benefit dividend growth stocks by reducing competition from Treasury yields and lowering borrowing costs for growth-oriented companies DGRO favors. Watch the Federal Reserve's statements following each Federal Open Market Committee meeting, typically held eight times per year.

Waste Management paid $1.21 billion in dividends against $2.16 billion in free cash flow during 2024, producing a 56.0% FCF payout ratio. That leaves nearly $950 million in retained cash after dividends. The trailing earnings payout ratio sits at 50.9% ($3.225 divided by $6.34 EPS). Over eight years, the FCF payout ratio averaged 49.4%, ranging from 39.8% in 2021 to 62.3% in 2023. Operating cash flow surged 69% from $3.18 billion in 2017 to $5.39 billion in 2024.

When it comes to picking dividend stocks, you not only want a firm that can support a generous payout, but one that can grow it at a fairly predictable rate over extended periods of time. Indeed, when thinking about dividend stocks with a long-term horizon in mind, I think it makes more sense to focus on the growth profile and the shareholder-return policy than just how large the upfront yield is.

Dividend investing is tricky business. On the one hand, investors looking for yield are enticed to consider the highest-yielding names in a given group. That said, as a stock's overall dividend yield rises, its risk profile inherently rises. Any time an investor sees a company with a double-digit yield or something outside of what most would consider to be a "normal" range, it's probably a company that's at risk of a dividend cut or further downside. That's what the market is saying at least.