April 2026 Stock Watch List

As I'm writing this blog post, it's Monday, March 16th. The temperature here in Central Wisconsin is expected to reach a high of 22 degrees Fahrenheit later today. On top of this seasonally cold weather, we have received about 18 inches of cumulative snowfall in less than 48 hours.

Now that I have completed my stock purchases for March 2026, I'm going to look ahead to stocks on my watch list for next month. Let's dive into it!

Stock #1: Automatic Data Processing (ADP)

Once again, the first stock on my watch list for the next month is Automatic Data Processing (running it back again after it was my first pick in my March 2026 Stock Watch List blog post and my February 2026 Stock Watch List blog post). Interested readers can find my investment thesis in this Seeking Alpha article from earlier this month.

Basically, ADP beat analyst estimates for revenue and adjusted diluted EPS (doing so in 19 and 20 out of the last 20 quarters, respectively). The HCM software company is now guiding for 9% to 10% adjusted diluted EPS growth in FY 2026 (up from 8% to 10%). Realistically, I believe that high single-digit to low double-digit percentage annual adjusted diluted EPS growth can continue through mid single-digit percentage annual revenue growth, incremental margin expansion, and share buybacks.

The nearly 3.3% dividend yield is also secure, with the adjusted diluted EPS payout ratio poised to be in the high-50% range for FY 2026 and the FCF payout ratio positioned to be in the low-50% range for FY 2026. ADP's balance sheet continues to enjoy an AA- S&P credit rating with a stable outlook.

GNG Research

Finally, shares are substantially discounted. My friends over at GNG Research peg ADP's fair value at $345 a share (a nearly 40% discount to fair value). While I apply a slightly more conservative fair value multiple of 25.5 (in line with the 20-year average P/E ratio and about one standard deviation below the FAST Graphs 10-year average multiple of 28.6), this still produces a fair value per share estimate of $298. Relative to the current $209 share price, that equates to a still very compelling 30% discount to fair value (a forward 12-month P/E ratio of just 17.9).

Stock #2: Microsoft (MSFT)

The second stock on my watch list for April 2026 is Microsoft. Just like I've been pounding the table on ADP, I've been doing so even more on MSFT. It has appeared in each of my first four stock watch list blog posts to begin 2026.

Just as I indicated in my previous blog post, MSFT's growth outlook remains tremendous. At a macro level, cloud computing and enterprise software are fast-growing markets to fuel teens percentage annual non-GAAP diluted EPS growth for the foreseeable future. On a more company-specific level, MSFT's commercial remaining performance obligation backlog more than doubled to $625 billion in its most recent quarter, as I outlined in this Dividend Kings listicle.

Then, there's the fact that it's the only tech company with a flawless AAA S&P credit rating. Along with an EPS payout ratio set to be in the low-20% range for FY 2026, this makes the 0.9% yield very safe. This is why I contend that MSFT should have no problem delivering 10%+ annual dividend growth to become a Dividend Aristocrat by the end of the decade.

From the current $399 share price, the stock is trading at a forward 12-month P/E ratio of just 21.8. That's well below the 10-year average P/E ratio of 29 and 22% under my fair value P/E ratio of 28 ($513 a share).

Stock #3: NVIDIA (NVDA)

Next up on my watch list for next month is NVIDIA. This is a pick I haven't added to since last May.

On its face, it would seem insane to claim that after rallying 61% over that time, I like NVDA about as much now as I did almost 10 months ago... Until I consider that the company's non-GAAP diluted EPS rocketed about 60% higher in FY 2026 to $4.77.

This growth is showing no signs of slowing down in FY 2027, either. The analyst consensus is for non-GAAP diluted EPS to soar another 70% to $8.11. CEO Jensen Huang noted on the most recent earnings call that the agentic AI era has arrived. These autonomous systems will perform more complex tasks than earlier generative AI, which will require continuous, high-performance inference, which should broaden demand beyond initial model training.

Even as hyperscalers are developing internal silicon to address supply bottlenecks amid soaring customer demand, NVDA's Blackwell architecture appears to have exceptional pricing power. That's helping the company to routinely maintain gross margins above 70%.

NVDA's balance sheet is phenomenal, too. The company boasts an AA- S&P credit rating with a stable outlook.

Bringing everything full circle, shares are trading at a forward 12-month P/E ratio of just 21.7 at the current $183 share price. This is well below the 10-year average P/E ratio of 44.3 and the 20-year average P/E ratio of 35.1. I believe that NVDA's move into software and networking can conservatively support a fair value P/E ratio of around 30. That would imply a fair value per share of $252, which would be a 28% discount to fair value.

Stock #4: UnitedHealth Group (UNH)

The fourth stock on my watch list for next month is UnitedHealth Group. I haven't added to this one since last August at $236 a share. Curious readers can find my updated and comprehensive thesis in this Dividend Kings deep dive.

The gist of my investment thesis is as follows: I'm convinced that UNH can unlock cost savings through AI efficiencies, become more efficient by leaving unprofitable markets, and further tapping into value-based care. Beyond the high single-digit adjusted diluted EPS growth forecasted for this year, these moves should return UNH to double-digit percentage growth in 2027 and beyond.

In the meantime, the managed care giant sports an A+ S&P credit rating with a stable outlook. The 3.1% dividend is also well-supported by a payout ratio slated to be in the high-40% to low-50% range for 2026. That has me confident that UNH can return to double-digit percentage dividend growth in 2027.

GNG Research

From the current $285 share price, the stock is priced at a forward 12-month P/E ratio of 15.7. For more context, that's well below the 10-year average of 20.5 and 21% below my fair value per share estimate of $364 (20 P/E ratio). This also represents a roughly 22% discount to the GNG Research fair value per share estimate of $365.

Stock #5: VICI Properties (VICI)

The final stock on my watch list for April 2026 is VICI Properties. My investment thesis is basically unchanged from when I last added to my position in January 2026.

The crux of my thesis is that VICI's world-class experiential properties are irreplaceable. Its annual contractual lease escalators and incremental acquisition activity provide a realistic path to 3% to 4% annual AFFO per share growth over the long haul.

VICI's 6.2% dividend yield is also arguably sustainable. The payout ratio is likely to be in the mid-70% range in 2026, which gives the net lease REIT the retained AFFO needed to keep fueling future growth, and a cushion for further payout raises. VICI's BBB- S&P credit rating with a stable outlook is another positive.

GNG Research

At the current $29 share price, the stock is trading at a forward 12-month P/AFFO ratio of 11.7. This is well below the seven-year average P/AFFO ratio of 15.7 and 16% less than my fair value per share estimate of $34 (14 P/AFFO ratio). That's also about 12% below the GNG Research fair value per share estimate of roughly $33.

Concluding Thoughts:

That's it for today. I'm planning on a 24% allocation to VICI, a 22% allocation to NVDA, a 20% allocation to UNH, a 19% allocation to MSFT, and a 15% allocation to ADP. This blend of value and growth offers a high-2% starting yield and potentially strong capital appreciation over the next several years.

Discussion:

Are any of ADP, MSFT, NVDA, UNH, or VICI on your watch list for April 2026?

If not, what stocks are you watching for next month?

Thanks for reading and please feel free to comment below!

February 2026 Dividend Stock Purchases/Sales

As I'm writing this blog post, it's Friday, March 6th. The temperature here in Central Wisconsin is set to reach a high of 53 degrees Fahrenheit later today, with a thunderstorm expected tonight. Better yet, the temperature is expected to reach into the 60s on Sunday and Monday with sunny forecasts!

Now that February 2026 is in the rearview mirror, I'll briefly highlight my stock purchases and stock sales during the month. Without further ado, let's get into it!

Dividend Stock Purchase #1: Automatic Data Processing (ADP)

The first dividend stock purchase that I made in February 2026 was two more shares of Automatic Data Processing at an average cost per share of $241.55. In my March 2026 Stock Watch List blog post, my rationale is the same as it has been in recent months (with an even better value proposition to boot). This raised my net annual forward dividends by $13.60, which is equivalent to a 2.81% net dividend yield.

Dividend Stock Purchase #2: Brookfield Asset Management (BAM)

The next dividend stock purchase that I completed during the month was 14 shares of BAM at an average price per share of $49.28. Curious readers can peruse my investment thesis in my February 2026 Dividend Stock Watch List blog post. My net annual forward dividends rose by $25.02 (accounting for the pre-dividend announcement payout on 12 of those shares and the post-dividend announcement on two of those shares), which works out to a 3.63% net dividend yield.

Dividend Stock Purchase #3: Microsoft (MSFT)

The third dividend stock purchase that I made in February 2026 was two shares of Microsoft at an average cost per share of $395.64. Interested readers can find my investment thesis in either of my blog posts linked above. The $7.28 in net annual forward dividends added from this transaction equates to a 0.92% net dividend yield.

Dividend Stock Purchase #4: Meta Platforms (META)

The next dividend stock purchase that I completed during the month was one share of Meta Platforms at a total cost of $650.35. Readers can check out my investment thesis in the February 2026 Dividend Stock Watch List blog post linked earlier. The $2.10 increase in my net annual forward dividends is equivalent to a 0.32% net dividend yield.

Dividend Stock Purchase #5: NNN REIT (NNN)

The fifth dividend stock purchase that I made in February 2026 was 23 shares of NNN REIT at an average price per share of $43.08. Once again, my investment thesis can be found in the aforementioned February 2026 Dividend Stock Watch List blog post. My net annual forward dividends rose by $55.20, which works out to a 5.57% net dividend yield.

Dividend Stock Sales: Bristol Myers Squibb (BMY), Dollar General (DG), Pinnacle West Capital (PNW), AT&T (T), United Parcel Service (UPS), and Viatris (VTRS)

I was also busy exiting quite a few small positions in my portfolio. Since these all had some combination of lackluster dividend growth/dividend freezes/elevated valuations, I decided late last month was the time to close them out to redeploy capital into higher conviction positions.

I sold out of 22 shares of BMY at $59.58 a share. I exited four shares of DG at $153 apiece. I closed out seven shares of PNW at $99.89 each. I sold off 21 shares of T at $28.95 a share. I exited five shares of UPS at $117.40 each. Finally, I closed out 42 shares of VTRS at $15.83 a share.

Overall, these sales reduced my net annual forward dividends by $166.63.

Stock Purchases: Intuit (INTU) and Western Midstream Partners (WES)

Rather than wait to buy Intuit in March, I got started before the Q2 2026 earnings report was released. In two tranches, I added a total of seven shares of INTU at an average cost of $392.62. In two tranches, I also added a total of 45 units of WES at an average price per unit of $42.66.

Including additional capital contributions of $186.80 beyond what I received from my proceeds in sales, I added $198.44 in net annual forward dividends/distributions (accounting for 32 units of WES purchased before the distribution increase and 13 units after the payout raise).

Concluding Thoughts:

In February 2026, I invested $3,792.40 in net capital. Including a $31.81 benefit from capital redeployment, my net annual forward dividends grew by $135.01 during the month. That equates to a 3.56% net yield.

Dividend boosts announced in February 2026 also lifted my net annual forward dividends by $64.108. That took my net annual forward dividends from around $6,885 heading into February 2026 to almost $7,090 to conclude the month.

Discussion:

How was your February 2026 for capital deployment?

Did you open any new position(s) as I did with INTU and WES during the month? Did you exit any positions as I did with BMY, DG, PNW, T, UPS, and VTRS?

I appreciate your readership and welcome your comments below!

February 2026 Dividend Income

As I'm writing this blog post, it's currently Saturday, February 28th. After reaching a high of 54 degrees Fahrenheit yesterday, the high temperature here in Central Wisconsin is only expected to reach 22 degrees today. The good news is that the next warming trend will begin on Sunday, with temperatures again reaching into the 50s by next weekend.

Now that February is already over (hard to believe, isn't it?), I thought it would be a great time to highlight my dividend income for the month. Without further ado, let's dig into it!

Net Dividend Income Almost Topped $700

In February 2026, I received $699.63 in net dividends (including ADR fees for British American Tobacco). That equates to a 6.9% quarterly growth rate over the $654.25 in net dividends collected in November 2025.

My net dividends received in February were also 35.5% higher over the $516.48 in net dividends logged in February 2025.

In my Charles Schwab portfolio, I collected $668.93 in net dividends from 21 companies. The timing of dividend payments from Comcast and American Tower explains how I received dividends from two more companies in February than I did last November. Purchases of MPLX LP in November and ONEOK in December also played a role in my higher income in this portfolio. 

I received $22.64 in net dividends from three companies in my Robinhood IRA account. Higher dividends from Realty Income, Agree Realty, and Mastercard (and a January purchase) contributed to slightly higher dividend income in this account.

In my Webull portfolio, I received $17.08 in net dividends from three companies. This was mostly due to higher dividend income from BTI from more favorable currency translation.

Concluding Thoughts:

February 2026 marked another month of strong progress for the overall portfolio. In the first two months of 2026, my net dividends are up 27.7% over 2025. By continuing to roll the snowball down the hill and God's grace, I hope to further accelerate this compounding in the coming months and years.

Discussion:

How was your dividend income in February 2026?

Did you receive any first-time dividend payments for the month?

Thanks for reading and I look forward to your comments below!

Expected Dividend Increases for March 2026

As I'm writing this blog post, it's Friday, February 20th. The temperature here in Central Wisconsin is set to reach a high of 30 degrees Fahrenheit later. For this time of year, that's pretty typical. So, I plan on getting outside for a bit today.

With that aside, I have received almost all of the dividend announcements I anticipated for February 2026. That makes now a great time to highlight these dividend declarations and look ahead to the next month. Let's get into it!

Actual Dividend Increases for February 2026

Dividend Increase #1: Allstate (ALL)

Allstate announced an 8% hike in its quarterly dividend per share to $1.08, which was perfectly in line with my expectation shared in this series' prior blog post.

My net annual forward dividends grew by $1.60 across my five shares of ALL due to this dividend announcement.

Dividend Increase #2: Brookfield Asset Management (BAM)

Brookfield Asset Management declared a 14.9% boost in its quarterly dividend per share to $0.5025. This was just above my prediction of a 14.3% raise to $0.50.

Across my 76 shares of BAM at the time of the declaration, my net annual forward dividends surged higher by $19.76 from this declaration.

Dividend Increase #3: British American Tobacco (BTI)

British American Tobacco announced a 2% increase in its quarterly dividend per share to 0.6126 GBP. That was below my forecast of a 3.6% raise to 0.6222 GBP.

My net annual forward dividends rose by $9.222 (based on current exchange rates) across my 141 shares of BTI due to this dividend announcement.

Dividend Increase #4: Equinix (EQIX)

Equinix declared a 10% boost in its quarterly dividend per share to $5.16. This came in above my expectation of an 8.1% increase in the quarterly dividend per share to $5.07.

Across my three shares of EQIX, my net annual forward dividends grew by $5.64 from this dividend declaration.

Dividend Increase #5: Genuine Parts Company (GPC)

Genuine Parts Company announced a 3.2% increase in its quarterly dividend per share to $1.0625.

My net annual forward dividends edged $0.78 higher across my six shares of GPC due to this dividend announcement.

Dividend Increase #6: Coca-Cola (KO)

Coca-Cola declared a 3.9% raise in its quarterly dividend per share to $0.53. That missed my prediction of a 4.9% raise in the quarterly dividend per share to $0.535.

Across my 10 shares of KO, my net annual forward dividends increased by $0.80 from this dividend declaration.

Dividend Increase #7: NextEra Energy (NEE)

NextEra Energy announced a 10% hike in its quarterly dividend per share to $0.6232. This was slightly more than my forecast of a 10% raise to $0.6230.

My net annual forward dividends grew by $10.886 across my 48 shares of NEE due to this dividend announcement.

Dividend Increase #8: PepsiCo (PEP)

PepsiCo declared a 4% increase in its quarterly dividend per share to $1.48. That was just below my expectation of a 4.9% raise in the quarterly dividend per share to $1.4925.

Across my 24 shares of PEP, my net annual forward dividends rose by $5.52 from this dividend declaration.

Dividend Increase #9: Prudential Financial (PRU)

Prudential Financial announced a 3.7% raise in its quarterly dividend per share to $1.40. This was in line with my prediction.

My net annual forward dividends edged $2 higher across my 10 shares due to this dividend announcement.

Dividend Increase #10: Rexford Industrial Realty (REXR)

Rexford Industrial Realty declared a 1.2% increase in its quarterly dividend per share to $0.435. That missed my forecast of a 2.9% raise to $0.4425.

Across my 30 shares of REXR, my net annual forward dividends inched $0.60 higher from this dividend declaration.

Dividend Increase #11: T. Rowe Price Group (TROW)

T. Rowe Price Group announced a 2.4% raise in its quarterly dividend per share to $1.30. This fell short of my expectation of a 3.1% bump to $1.31.

My net annual forward dividends grew by $0.72 across my six shares of TROW due to this dividend announcement.

Dividend Increase #12: Tractor Supply (TSCO)

Tractor Supply declared a 4.3% increase in its quarterly dividend per share to $0.24. That was less than the 8.7% boost to $0.25 that I was predicting.

Across my 25 shares of TSCO, my net annual forward dividends edged $1 higher from this dividend declaration.

Distribution Increase: Western Midstream Partners (WES)

Western Midstream Partners announced a 2.2% raise in its quarterly distribution per unit to $0.93.

My net annual forward distributions rose by $2.56 across my 32 units of WES at the time of the distribution announcement.

Pending Dividend Increase #1: The Home Depot (HD)

Home Depot hasn't yet declared its next dividend. However, I'm maintaining my forecast of a 4.3% raise in the quarterly dividend per share to $2.40.

Across my five shares of HD, my net annual forward dividends would rise by $2 from such a dividend declaration.

UPDATE: HD missed my forecast, increasing its quarterly dividend per share by 1.3% to $2.33. Across my five shares, my net annual forward dividends grew by $0.60 from this dividend declaration.

Pending Dividend Increase #2: TJX Companies (TJX)

TJX Companies also has yet to announce its next dividend. Still, I'm sticking with my expectation of a 9.4% boost in the quarterly dividend per share to $0.465.

My net annual forward dividends would grow by $1.76 across my 11 shares of TJX due to such a dividend announcement.

UPDATE: TJX surpassed my expectations, hiking its quarterly dividend per share by 12.9% to $0.48. My net annual forward dividends rose by $2.42 across my 11 shares of TJX from this dividend announcement.

Dividend Freeze: Meta Platforms (META)

In light of its significant uptick in capex for 2026 to pivot the company toward personal superintelligence, Meta Platforms opted to keep its quarterly dividend per share at $0.525. I was anticipating an 8.6% lift in the payout to $0.57.

Dividend Freeze: Realty Income (O)

Realty Income kept its monthly dividend per share at $0.27. Since O tends to announce one larger dividend raise at some point in the year (along with four smaller ones), I expected a 1.9% raise to $0.2750. I still believe we'll see that level of a dividend raise declared within the next few months.

Expected Dividend Increases for March 2026

Expected Dividend Increase #1: American Tower (AMT)

The first dividend raise that I'm predicting for next month will come from American Tower. I believe that AMT will announce a 5.9% boost in its quarterly dividend per share to $1.80.

Across my six shares of AMT, my net annual forward dividends would rise by $2.40 from such a dividend announcement.

Expected Dividend Increase #2: General Dynamics (GD)

The next dividend increase that I'm anticipating for March 2026 will be from General Dynamics. My guess is that GD will declare a 6% raise in its quarterly dividend per share to $1.59.

My net annual forward dividends would grow by $2.16 across my six shares of GD due to such a dividend declaration.

Expected Dividend Increase #3: JPMorgan Chase & Co. (JPM)

The third dividend raise that I'm expecting for next month will come from JPMorgan Chase & Co. My best guess is that JPM will announce a 6.7% raise in its quarterly dividend per share to $1.60 (JPM has raised its dividend twice a year in recent years to better manage its capital surplus).

Across my six shares of JPM, my net annual forward dividends would increase by $2.40 from such a dividend announcement.

Dividend Increase #4: Realty Income (O)

The final dividend increase that I'm predicting for March 2026 will be from Realty Income. I believe O will declare a 0.2% increase in its monthly dividend per share to $0.2705.

My net annual forward dividends would edge $0.918 higher across my 153 shares due to such a dividend declaration.

Concluding Thoughts:

My net annual forward dividends climbed higher by $64.108 in February 2026 from 15 payout hikes. This would be equal to investing $2,136.93 at a 3% net dividend yield.

If my four raises expected in March 2026 materialize, my net annual forward dividends would rise by $7.878. That would be equivalent to investing $262.60 at a 3% net yield.

Discussion:

How was your February 2026 for dividend raises?

Did you receive any first-time payout boosts as I did with EQIX and WES?

Thanks for reading and please feel free to comment below!