Dividend-growth stocks have outperformed the market in 2026 due to investor shifts towards stable, defensive stocks amidst AI-related market uncertainties. Morningstar highlights 10 undervalued dividend-growth stocks, such as UnitedHealth Group and Medtronic, that exhibit financial health, competitive advantages, and have consistently increased dividends.
Consider focusing on dividend-growth stocks, which are currently outperforming the market due to their stability and predictable cash flows. Notably, the Morningstar US Dividend Growth Index has surpassed the US Market Index by over 5 percentage points in 2026. Evaluate stocks like UnitedHealth Group, Medtronic, and Mondelez International, which are trading below fair value estimates and benefit from strong economic moats.