Buy These 5 Dividend Growth Stocks Amid AI Fear Disrupting Market

Major U.S. stock market indices tumbled on Feb. 12, 2026, as fears about AI disruption spilled into sectors, such as real estate, transportation and software. Decline across all “Magnificent Seven” heavyweights dragged the technology sector down, weighing on the broader market.

Amid this background, equity investors may find a better footing in steady dividend-growth stocks over high-beta growth names. Companies with a proven track record of increasing payouts signal the balance sheet resilience and cash flow durability required to navigate a period where the traditional growth narrative is being re-evaluated.

Stocks with a strong history of year-over-year dividend growth form a healthy portfolio with a greater scope of capital appreciation, as opposed to simple dividend-paying stocks or those with high yields.

We have selected five such dividend growth stocks — Agnico Eagle Mines (AEM), Advanced Drainage Systems WMS, Amphenol APH, Tapestry TPR and TIM S.A. TIMB — that could be solid choices for your portfolio.

Why Is Dividend Growth Better?

Stocks with 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.

These stocks have fundamentals that make them quality and promising long-term dividend growth investments. Their strengths include sustainable business models, a long track record of profitability, rising cash flows, solid liquidity, strong balance sheets and attractive valuation characteristics. A consistent history of dividend growth underscores the potential for continued growth ahead.

Although these stocks do not necessarily have the highest yields, they have outperformed for a more extended period than the broader stock market or any other dividend-paying stock.

As a result, selecting dividend-growth stocks appears to be a winning strategy when other key parameters are also taken into account.

5-Year Historical Dividend Growth Greater Than Zero: This selects stocks with a solid dividend growth history.

5-Year Historical Sales Growth Greater Than Zero: This represents stocks with a strong record of growing revenues.

5-Year Historical EPS Growth Greater Than Zero: This represents stocks with a solid earnings growth history.

Next 3-5 Year EPS Growth Rate Greater Than Zero: This represents the rate at which a company’s earnings are expected to grow. Improving earnings should help companies sustain dividend payments.

Price/Cash Flow Less Than M-Industry: A ratio lower than the industry median indicates that a stock is undervalued within its industry, meaning an investor would pay less for the company’s cash flow.

52-Week Price Change Greater Than S&P 500 (Market Weight): This ensures that a stock has appreciated more than the S&P 500 over the past year.

Top Zacks Rank: Stocks having a Zacks Rank #1 (Strong Buy) and 2 (Buy) generally outperform their peers in all types of market environments.

Growth Score of B or better: Our research shows that stocks with a Growth Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best upside potential.

These few criteria alone narrowed the universe from more than 7,700 stocks to just 12.

Here are five of the 12 stocks that fit the bill:

Canada-based Agnico Eagle Mines is a mining company that is also the second-largest gold producer in the world. The Zacks Consensus Estimate for 2026 revenues suggests a year-over-year improvement of 28%. The stock boasts a long-term (three-to-five years) earnings growth rate of 33.8% and has an annual dividend yield of 0.74%.

AEM currently holds a Zacks Rank #2 and has a Growth Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.

Ohio-based Advanced Drainage Systems is a manufacturer of high-performance thermoplastic corrugated pipe and water management products. The Zacks Consensus Estimate for WMS fiscal 2026 revenues suggests a year-over-year improvement of 4%. The stock boasts a long-term earnings growth rate of 13.90% and has an annual dividend yield of 0.42%.

WMS currently has a Zacks Rank #2 and a Growth Score of A.

Connecticut-based Amphenol designs, manufactures and markets electrical, electronic and fiber optic connectors, interconnect systems, antennas, sensors and sensor-based products and coaxial and high-speed specialty cable. The Zacks Consensus Estimate for APH’s 2026 revenues suggests a year-over-year improvement of 34.9%. The stock boasts a long-term earnings growth rate of 21.90% and has an annual dividend yield of 0.69%.

APH currently holds a Zacks Rank #2 and has a Growth Score of A.

New York-based Tapestry is the designer and marketer of fine accessories and gifts for women and men in the United States and internationally. The Zacks Consensus Estimate for TPR’s fiscal 2026 revenues suggests a year-over-year improvement of 9.6%. The stock boasts a long-term earnings growth rate of 12.9% and has an annual dividend yield of 1.03%.

TPR currently sports a Zacks Rank #1 and has a Growth Score of A.

Rio De Janerio-based TIM provides commercial banking services. The consensus estimate for TIMB’s 2026 revenues suggests a year-over-year improvement of 10.3%. The stock boasts a long-term earnings growth rate of 18.7% and has an annual dividend yield of 5.20%.

TIMB currently holds a Zacks Rank #2 and has a Growth Score of B.

You can get the rest of the stocks on this list by signing up now for your two-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can create your own strategies and test them first before taking the investment plunge.
 

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This article originally published on Zacks Investment Research (zacks.com).

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