Core Viewpoint - Dividend growth stocks are currently outperforming as investors shift towards defensive stocks with stable earnings and predictable cash flows [2] Group 1: Dividend Growth Stocks Overview - Dividend growth stocks have consistently increased their dividends over the past 5 years and possess competitive advantages as measured by the Morning Star economic moat rating [2] - The stocks discussed are Metronic, Manderly International, and EOG Resources, all of which are attractive from a valuation perspective [2] Group 2: Metronic - Metronic is the largest pureplay medical device maker with a narrow economic moat based on intangible assets and switching costs [3] - The company aims to return a minimum of 50% of its annual free cash flow to shareholders, with recent years seeing returns in the 60% to 70% range due to dividends and share repurchases [3] - Metronic is a dividend aristocrat, having raised its dividend annually for over 25 years, with a fair value estimate of $112 [4] Group 3: Manderly International - Manderly has a wide economic moat with a strong portfolio of brands including Oreo, Chips Ahoy, and Cadbury [5] - The company is expected to increase its dividend in the high single-digit range annually through fiscal 2034, implying a payout ratio of about 60% [5] - Manderly's stock is valued at $73 [5] Group 4: EOG Resources - EOG Resources is an oil and gas producer with a narrow economic moat based on cost advantages [6] - The company has paid a regular growing dividend since becoming independent in 1999 and aims to return over 70% of its free cash flow to shareholders through dividends and share repurchases [6] - EOG's stock is valued at $139 [6]
3 Dividend Stocks for March 2026