As I'm writing this blog post, it's Friday, January 16th. The temperature here in Central Wisconsin is set to reach a high of 25 degrees Fahrenheit later today, which isn't bad for this time of the year. Unfortunately, the high temperatures won't reach beyond the high single digits this weekend.
The time of the month means that I'm likely done buying stocks for the next couple of weeks. Thus, I believe now is a good time to look ahead to the dividend stocks on my watch list for February 2026. Let's dive into it!
Dividend Stock #1: Automatic Data Processing (ADP)
The first dividend stock on my watch list for next month is Automatic Data Processing. Interested readers can check out my investment thesis in this Seeking Alpha article from earlier this month.
Basically, ADP is a fundamentally robust business. It's the leader in a large, fragmented, and growing market. I believe this provides it with a path to steady 8% to 10% annual adjusted diluted EPS growth for the foreseeable future. ADP is a financial fortress as well, with an AA- S&P credit rating and a stable outlook. The 2.6% dividend yield is safe (the adjusted diluted EPS and free cash flow payout ratios are both easily covered), with room to build on its 51-year dividend growth streak. At the current $262 share price (as of January 16th, 2026), the stock is priced at a nearly 20% discount to my $320+ fair value per share estimate.
Dividend Stock #2: Enbridge (ENB)
The next dividend stock on my watch list for February 2026 is Enbridge. Curious readers will find that my investment thesis isn't all that different from my September 2024 Dividend Stock Watch List blog post.
ENB remains set up to capitalize on the ongoing AI boom and surge in electricity demand with its impressive energy infrastructure network. Its BBB+ S&P credit rating with a stable outlook is another selling point. The 31-year dividend growth streak in CAD is another positive, with more dividend growth likely ahead. Finally, the stock looks to be slightly discounted from the current $46 share price.
Dividend Stock #3: Meta Platforms (META)
The third dividend stock on my watch list for next month is Meta Platforms. Since my December 2025 Dividend Stock Watch List blog post, the investment thesis is basically the same.
META's most recent quarterly results reflected the influence of its social media ecosystem. Seamless integration of AI into its core business is likely to assist it in continuing to deliver outsized growth to shareholders. META's AA- S&P credit rating with a stable outlook is a sign of immense financial strength. The stock's 0.3% dividend yield is small, but I believe it will be one of the great dividend growers of the next 10, 15, or 20 years. In conclusion, META's $647 share price is well below my $800 fair value per share estimate.
Dividend Stock #4: Microsoft (MSFT)
The final dividend stock on my watch list for February 2026 is Microsoft. As I explained in my January 2026 Dividend Stock Watch List blog post, MSFT is a versatile compounder.
My overall investment thesis that MSFT is a leader in numerous fast-growing market verticals (e.g., cloud computing and enterprise software) still holds true. The company earns the distinction of being the only tech company to earn an AAA S&P credit rating. MSFT's 0.8% dividend yield is backed up by a payout ratio in the low-20% range. This puts it in a position to become a Dividend Aristocrat in another four years. Lastly, the $478 share price is moderately below my $525 fair value per share estimate.
Concluding Thoughts:
That's all for now. Four world-class businesses that I'm planning to buy within the next few weeks. My tentative weighting will be as follows: 32% to ENB, ~30% to MSFT, 21% to META, and 17% to ADP. This should produce a net dividend yield in the high-2% range to go along with intriguing valuations and growth potential.
Discussion:
Are any of ADP, ENB, META, or MSFT on your watch list for February 2026?
If not, what stocks are on your radar for next month?
Thanks for reading and please feel free to comment below!
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