Investors Eye Dividend Growth Amid Market Uncertainty

Market turmoil prompts investors to seek safe dividend growth stocks. Notable candidates include Philip Morris International, S&P Global, and Walmart, all offering stability against tariffs and solid future growth.

Date: 09-04-2025

AI Rating: 7

The current market uncertainty, fueled by "Liberation Day" tariffs and concerns over a potential global recession, is causing investors to consider selling off stocks. However, this strategy may overlook significant opportunities for gains, especially in dividend growth stocks that demonstrate resilience against economic headwinds.

Philip Morris International (PM): The company shows adjusted earnings per share (EPS) growth of 4.4% since its spin-off in 2008. Analysts forecast EPS growth of 9% in 2025 and 10% in 2026, showcasing solid profitability. The forward dividend yield of 3.6% along with a trailing payout ratio of 88% gives PM room for future dividend increases. The overall performance suggests that PM is well-positioned to weather economic challenges, especially with a business model largely insulated from tariff impacts.

S&P Global (SPGI): S&P Global offers necessary financial services that remain vital during market turbulence, making it less susceptible to tariff issues. Analysts project EPS growth of 9% in 2025 and 12% in 2026. With a forward dividend yield of 0.9% and a low payout ratio of 29%, S&P Global shows strong potential for continued dividend growth, reinforcing its status as a reliable Dividend King.

Walmart (WMT): Despite concerns over its reliance on foreign manufacturing, Walmart benefits from its vast network and pre-shipped inventory before implementing tariffs. Analysts expect adjusted EPS growth of 5% and 12% for fiscal 2026 and fiscal 2027, respectively, and with a forward yield of 1.1% and a payout ratio of 34%, Walmart is well-positioned for ongoing dividend increases.

In summary, the focus on these dividend growth stocks in the face of external pressures might provide investors with the necessary buffers during uncertain times and the potential for rewarding returns in the coming months.

Stocks: PM SPGI WMT