Zacks Equity Research
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Chicago, IL – July 17, 2025 – Stocks in this week’s article are Agnico Eagle Mines Ltd. AEM, UGI Corp. UGI, Qifu Technology Inc. QFIN, Taiwan Semiconductor Manufacturing Company Ltd. TSM and Group 1 Automotive GPI.
Dividend investing has emerged as one of the most resilient strategies in 2025, gaining traction amid heightened market volatility and lingering uncertainties. While U.S. stocks continue to hover near record highs, buoyed by optimism around trade negotiations, robust corporate earnings, cooling inflation and the AI-driven rally, investor sentiment remains clouded by geopolitical tensions and ambiguity surrounding the Fed’s next moves.
Dividends offer a reliable stream of income, making them an attractive choice during uncertain times. Although they typically don’t deliver outsized price gains, dividend-paying stocks are known for stabilizing portfolios and outperforming in turbulent markets. Focusing on dividend growth rather than just yield can further enhance returns.
Companies with a consistent track record of increasing their payouts tend to be financially strong and offer better long-term capital appreciation. This strategy helps build a healthier, more resilient portfolio compared to chasing high-yield or one-off dividend payers. We have selected five dividend growth stocks — Agnico Eagle Mines Ltd., UGI Corp., Qifu Technology Inc., Taiwan Semiconductor Manufacturing Company Ltd. and Group 1 Automotive — which could be solid choices for the second half.
Stocks that have a strong history of dividend growth belong to mature companies, which are less susceptible to large swings in the market and thus act as a hedge against economic or political uncertainty as well as stock market volatility. At the same time, these offer downside protection with their consistent increase in payouts.
Additionally, these stocks have superior fundamentals that make dividend growth a quality and promising investment for the long term. These include a sustainable business model, a long track of profitability, rising cash flows, good liquidity, a strong balance sheet and some value characteristics. Further, a history of strong dividend growth indicates that a dividend increase is likely in the future.
Although these stocks do not necessarily have the highest yields, they have outperformed for a longer period than the broader stock market or any other dividend-paying stock.
Here are five of the 14 stocks that fit the bill:
