Susan Dziubinski: I’m Susan Dziubinski, co-host of The Morning Filter podcast, and I’m sitting in for Morningstar DividendInvestor editor David Harrell for this month’s dividend stock video. In this monthly series, we take a look at the dividend prospects of three stocks that are popular with income investors.
This month, we’re focusing specifically on dividend-growth stocks. Why? As a group, dividend-growth stocks are outperforming lately, as investors have rotated into more defensive stocks with stable earnings and predictable cash flows.
All of the dividend-growth stocks we’ll cover today share a few qualities. They’ve steadily increased their dividends over the past five years. They possess competitive advantages, as measured by the Morningstar Economic Moat Rating, and they look attractive from a valuation perspective.
3 Dividend Stocks for March 2026
Our first dividend-growth stock is Medtronic MDT. Medtronic is the largest pure-play medical-device maker. We think the company has carved out a narrow economic moat. Based on intangible assets and switching costs. The company seeks to return a minimum of 50% of its annual free cash flow to shareholders, but it’s been in the 60%-70% range in recent years due to its dividend and opportunistic share repurchases. Medtronic is also a dividend aristocrat, which means it’s raised its dividend annually for more than 25 years. We assign Medtronic stock a $112 fair value estimate.
Ex-dividend date and dividend per share for Medtronic.
The next dividend-growth stock on our list is Mondelez International MDLZ. We think Mondelez has carved out a wide economic moat with its portfolio of brands that includes Oreo, Chips Ahoy, and Cadbury. We expect the company to increase its dividend in the high single-digit range on average annually through fiscal 2034, which implies a payout ratio of about 60%. We think Mondelez’s stock is worth $73.
Ex-dividend date and dividend per share for Mondelez International.
The final dividend-growth stock on our list today is EOG Resources EOG. We think this oil and gas producer possesses a narrow economic moat based on cost advantages. EOG has paid a regular growing dividend since it became an independent company in 1999. The firm seeks to return more than 70% of its free cash flow to shareholders through dividends and share repurchases. We think EOG’s stock is worth $139.
Ex-dividend date and dividend per share for EOG Resources.
For more dividend stock ideas, be sure to visit Morningstar.com.
Morningstar directors Josh Aguilar and Erin Lash and senior analyst Debbie Wang provided the research behind this segment.
Watch Warren Buffett’s Berkshire Hathaway Bought These Stocks. Should You? for more from Susan Dziubinski.