Core Viewpoint - The article discusses the dividend prospects of three popular stocks for income investors: Coca-Cola, Domino's Pizza, and Texas Instruments, highlighting their dividend growth potential and current yields. Group 1: Coca-Cola - Coca-Cola is a dividend king, having raised its per share dividend for 63 consecutive years [1] - The stock currently yields 2.8%, down from 3.1% a year ago, with a 3.9% annualized dividend growth over the past 5 years [2] - The company's payout ratio has decreased from above 80% in 2020 to below 70% currently, with forecasts suggesting an increase in the annual dividend from $24 to $26.5 by 2029 [2][3] Group 2: Domino's Pizza - Domino's Pizza has a current yield of 1.7%, with an impressive 18.4% annualized dividend growth over the past 5 years [4] - Analysts forecast the annual dividend will rise from $6.96 to $11.64 by 2029, indicating a capacity to raise the dividend by 14.5% per year [4] - The stock is currently trading at a 5% discount to its fair value estimate of $436 [5] Group 3: Texas Instruments - Texas Instruments is nearing dividend aristocrat status, having increased its dividend for 22 consecutive years [5] - The stock currently yields 2.7%, consistent with its 5-year average, and has shown 10.4% annualized dividend growth over the past 5 years [6] - Analysts project the annual dividend will increase from $5.68 to $6.46 by 2029, with management focusing on redistributing excess cash to shareholders [6][7]
3 Dividend Stocks for February 2026