3 Dividend Stocks with Growth on Tap for the Second Half

Amid stock market volatility, geopolitical tension, and sticky inflation, dividend-paying stocks offer investors a balance of safety and steady growth. IBM has grown its dividend for 30 consecutive years while expanding into AI and quantum computing, delivering a five-year total return exceeding 170%. Kinder Morgan and the Templeton Emerging Markets Fund both offer growing dividends and strong total returns despite volatile oil prices and global market swings.

In the 30 days ending July 8, the S&P 500 made a directional move of 1% or more four times. Some analysts will dismiss that as a consequence of large numbers. That is, the S&P 500 is over 7,500 points. Five years ago, that was around 4,300 and 10 years ago it was around 2,100. But investors perceive that as volatility, and that has many seeking safety outside of the volatile artificial intelligence trade. It’s hard to fault that strategy. Investors (who are also consumers) are dealing with sticky inflation, which impacts the outlook for interest rates and consumer sentiment. That would be enough, but investors also have to consider a tense geopolitical environment in the Middle East and Europe that suggests there may be many more directional moves of 1% or more in the S&P 500 for the remainder of 2026.

Dividend Stocks Balance Safety With Growth Despite the market gyrations, many investors sleep well at night. Their investment strategy includes dividend-paying stocks, so their portfolio generates regular, passive income. Many investors will dismiss dividend stocks as being too boring. It’s true that many of the best dividend stocks will not beat the performance of the S&P 500. That math doesn’t work for growth-oriented investors. But for investors looking for safety in a...