Dividend Growth Stocks to Buy

Dividend growth stocks are gaining traction, with several high-quality companies seeing increased investor interest. Hormel Foods, Procter & Gamble, and Coca-Cola, all Dividend Kings, are favored for their strong yields and solid performance despite market volatility. Canadian Pacific Kansas City was also highlighted, receiving a price target increase from Barclays. Dividend stocks like Johnson & Johnson, Altria, Verizon, Eli Lilly, Parker-Hannifin, and Microsoft have climbed recently, benefiting from a rotation out of high-flying tech stocks and into more stable investments.

The rally in AI chip stocks has cooled, leading investors to seek refuge in dividend-paying stocks. Consumer staples and healthcare sectors are particularly favored, as they offer reliable income streams and defensive characteristics. Coca-Cola, for instance, is seen as a safe haven, even at its all-time high. AbbVie is also attracting attention as a potential undervalued dividend growth stock.

Upcoming catalysts to watch include Coca-Cola's earnings on July 26, which could provide insight into its growth prospects. UnitedHealth Group's dividend growth track record will be in focus when it reports earnings on July 19, potentially drawing more investors to the sector. Additionally, investors will monitor the broader market's reaction to inflation data and geopolitical tensions, as these factors could drive further rotation into dividend stocks.