Atmos Energy Corporation (NYSE:ATO) is included among the 14 Best Dividend Growth Stocks to Buy and Hold in 2026. Morgan Stanley Rebalances Utilities View, Cuts Atmos Energy (ATO) to Equal Weight On December 16, Morgan Stanley downgraded Atmos Energy Corporation (NYSE:ATO) to Equal Weight from Overweight and lowered its price target to $172 from $182 as part of its 2026 utilities outlook. The firm said utility stock performance in 2026 will be shaped by data center demand and pockets of growth, with “no ...

Core Insights - Market indices are near all-time highs, creating caution among investors regarding equity accumulation [1] - There are income funds available that are reasonably valued and can provide consistent dividends [1] - A hybrid investment strategy combining classic dividend growth stocks, Business Development Companies, REITs, and Closed End Funds can enhance investment income while achieving total returns comparable to traditional index funds like the S&P [1]

Key Takeaways U.S. stocks slipped on Dec. 26 as holiday-driven light volume snapped winning streaks across major indexes. Dividend-growth stocks like ENS offer defensive income, backed by consistent payouts.The screen highlights WWD, DCI, ROK, and VRT for positive revenue outlooks and long-term earnings growth. The U.S. stock market ended slightly lower on Dec. 26, 2025, primarily due to extremely light trading volume after the Christmas holiday, as many institutional investors were already out for the year ...

Core Viewpoint - The rise of covered call ETFs has prompted a search for qualities that make a strong long-term investment, with a focus on the ProShares Russell 2000 High Income ETF as a potential candidate for generating income and total return comparable to traditional index funds [1]. Group 1: Investment Strategy - The company emphasizes the importance of a solid base of classic dividend growth stocks, complemented by Business Development Companies, REITs, and Closed End Funds to enhance investment income [1]. - A hybrid investment system combining growth and income strategies is proposed, aiming to achieve total returns on par with the S&P 500 [1].

Core Viewpoint - The article emphasizes the importance of a hybrid investment strategy that combines classic dividend growth stocks with other asset classes like Business Development Companies, REITs, and Closed End Funds to enhance investment income while achieving total returns comparable to traditional index funds [1]. Investment Strategy - The company advocates for a diversified approach to investing, suggesting that a solid base of dividend growth stocks can be complemented by other investment vehicles to create a balanced portfolio [1]. - The strategy aims to boost investment income while maintaining a total return that aligns with the performance of the S&P 500 index [1].

Market Overview - Major U.S. stock indices experienced a significant decline on December 12, 2025, primarily driven by sell-offs in technology stocks due to concerns over an AI bubble narrative [1] - Investors reacted negatively to news from Broadcom, which indicated expected margin pressure in its AI business for the first quarter of fiscal 2026, despite exceeding fiscal fourth-quarter earnings estimates [1] Investment Strategy - In the current market environment, equity investors may favor dividend-growth stocks over high price-growth stocks, as companies with a history of raising dividends typically demonstrate strong financial health, providing a defensive hedge against economic uncertainty [2] - Stocks with a strong history of year-over-year dividend growth are suggested to form a healthier portfolio with greater potential for capital appreciation compared to simple dividend-paying stocks or those with high yields [2] Selected Dividend Growth Stocks - Five dividend growth stocks have been identified as potential solid choices for investment: TE Connectivity (TEL), Enersys (ENS), Donaldson (DCI), Lam Research (LRCX), and Leidos Holdings (LDOS) [3][9] - These stocks exhibit positive sales and earnings per share (EPS) growth histories, consistent dividend increases, solid fundamentals, and favorable valuation metrics [9] Characteristics of Dividend Growth Stocks - Stocks with a strong history of dividend growth are typically associated with mature companies that are less vulnerable to market volatility, thus providing a hedge against economic or political uncertainties [4] - These stocks are characterized by superior fundamentals, including sustainable business models, long-term profitability, rising cash flows, good liquidity, strong balance sheets, and value characteristics [5] - Although these stocks may not have the highest yields, they have historically outperformed the broader stock market and other dividend-paying stocks [6] Performance Metrics - Selected stocks must meet specific criteria, including: - 5-Year Historical Dividend Growth Greater Than Zero - 5-Year Historical Sales Growth Greater Than Zero - 5-Year Historical EPS Growth Greater Than Zero - Next 3-5 Year EPS Growth Rate Greater Than Zero [7] - Additional metrics include a Price/Cash Flow ratio less than the industry median and a 52-Week Price Change greater than the S&P 500 [8] Individual Stock Insights - **TE Connectivity (TEL)**: Expected fiscal 2026 revenue growth of 10.2%, long-term earnings growth rate of 12.3%, and an annual dividend yield of 1.23% [10][11] - **Enersys (ENS)**: Projected fiscal 2026 revenue growth of 4%, long-term earnings growth rate of 15%, and an annual dividend yield of 0.71% [11][12] - **Donaldson (DCI)**: Anticipated fiscal 2026 revenue growth of 3.4%, long-term earnings growth rate of 10%, and an annual dividend yield of 1.30% [12] - **Lam Research (LRCX)**: Expected fiscal 2026 revenue growth of 14.1%, long-term earnings growth rate of 20.3%, and an annual dividend yield of 0.65% [13] - **Leidos Holdings (LDOS)**: Projected fiscal 2025 revenue growth of 3.4%, long-term earnings growth rate of 11.6%, and an annual dividend yield of 0.84% [14]

Core Insights - BlackRock Debt Strategies Fund (DSU) is a closed-end fund that offers exposure to a diverse range of debt investments, which can generate attractive income [1] Group 1: Fund Structure and Strategy - The fund is structured to provide efficient income generation through various debt investments [1] - The investment strategy includes a mix of classic dividend growth stocks, Business Development Companies, REITs, and Closed End Funds to enhance investment income while achieving total returns comparable to traditional index funds [1] Group 2: Performance and Management - The fund aims to create a hybrid system that balances growth and income, targeting total returns on par with the S&P [1]

分组1 - The article discusses the performance history of YieldMax funds, indicating that some have underperformed while adjustments to portfolios are being made [1] - The author emphasizes the importance of a diversified investment strategy that includes classic dividend growth stocks, Business Development Companies, REITs, and Closed End Funds to enhance investment income [1] - A hybrid investment system is mentioned, which aims to balance growth and income while achieving total returns comparable to traditional index funds like the S&P [1]

Core Insights - The article discusses the performance and operational dynamics of various option ETFs, specifically highlighting the Global X S&P 500 Covered Call ETF (XYLD) as a notable example [1]. Investment Strategy - The investment approach combines classic dividend growth stocks with Business Development Companies, REITs, and Closed End Funds to enhance investment income while achieving total returns comparable to traditional index funds [1]. - This hybrid strategy aims to balance growth and income, providing a robust framework for long-term investment success [1].

Core Insights - The current interest rate environment poses challenges for investors, particularly in selecting which business development companies (BDCs) to invest in due to concerns over portfolio health and growth potential [1] Group 1: Investment Strategy - A hybrid investment strategy combining classic dividend growth stocks with BDCs, REITs, and Closed End Funds can enhance investment income while achieving total returns comparable to traditional index funds like the S&P [1]