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!