Dividend growth stocks for down markets, per Trivariate Research
In turbulent markets, turn to companies with solid dividend growth to provide your portfolio with some downside protection, according to Trivariate Research. The major averages slid on Tuesday, with the S & P 500 heading for a third losing session as bond yields surged. The rate on the 10-year Treasury note touched its highest level since early 2025 and was last seen trading above 4.6%. “Historically, when investors wanted to get defensive within their equity portfolios, they looked for more predictable revenue streams,” wrote Trivariate founder Adam Parker in a recent report. Those investors would buy up pharmaceuticals, telecoms, consumer staples or utilities for that exposure. However, the search for those defensive plays is changing. “One major challenge today is that this traditional defensive part of the market has never been smaller,” Parker added. He said that while those defensive corners of the market represented nearly 30% of the S & P 500’s market capitalization 25 years ago, today they’re just over 10%. To that end, Trivariate sought stocks that have demonstrated consistent dividend growth over at least the past five years and that are indicated to continue growing those payments. These stocks also have forecasted sales growth of at least 7% and anticipated earnings growth of 10%. Here are a few names that made the cut. Pest control company Rollins showed up on Trivariate’s list. Last October, the company lifted its dividend payment by more than 10% to just over 18 cents per share. The stock’s current dividend yield is roughly 1.4%, and shares are down about 10% in 2026. Rollins held its investor day event last week, and it was well received by major Wall Street shops. “We came away with increased confidence in the company’s ability to deliver compounding double-digit growth across revenue, earnings and [free cash flow],” said Goldman Sachs analyst George Tong, who reiterated his buy rating on the name. “We view ROL as a durable compounder with economic and AI resilience, supported by multiple growth levers across residential, commercial and termite,” he added. Tong is in good company: Twelve of the 19 analysts covering Rollins rate it a buy or strong buy, and analyst price targets suggest upside of 18% from current levels, according to LSEG. Liquefied natural gas play Cheniere Energy also turned up on the list of consistent dividend growers. The company bumped its quarterly dividend up by more than 10% last October, bringing it to about 56 cents a share. The current dividend yield is a modest 0.9%. The stock is up 26% this year, catching a tailwind from reduced liquified natural gas production in the Middle East amid the Iran war . Cheniere issued its first-quarter results earlier this month, posting adjusted earnings before interest, taxes, depreciation and amortization that beat estimates and raising its full-year guidance. The company sees full-year adjusted EBITDA ranging from $7.25 billion to $7.75 billion, compared to its earlier call for $6.75 billion to $7.25 billion and the FactSet consensus forecast of $7.54 billion. “Volumes were particularly notable, with the company exporting a record 187 cargoes in the quarter, surpassing the prior record set in 4Q25,” wrote Mizuho analyst Gabriel Moreen, who rates the stock outperform. “We remain constructive on strong volume outlook and continued project execution.” The name remains well liked on Wall Street, with 23 out of 24 analysts rating it a buy or strong buy, per LSEG. Consensus price targets call for nearly 23% upside from current levels. Other names that appeared on Trivariate’s list include Microsoft , Abbott Laboratories , AbbVie and Stryker . — CNBC’s Michael Bloom contributed reporting.
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