July 2026 Dividend Stock Watch List

As I'm writing this blog post, it's Tuesday, June 9th. The temperature here in Central Wisconsin reached a high of 84 degrees Fahrenheit earlier today with a sunny forecast, so I was glad to spend some time outside.

Now that my stock purchases are largely complete for June 2026, I will be looking ahead at the dividend stocks on my watch list for next month. Let's dive into it!

Dividend Stock #1: Brookfield Asset Management (BAM)

The first stock on my watch list for July 2026 is Brookfield Asset Management. Interested readers can check out my May 2026 Stock Watch List blog post or my recent Seeking Alpha article for my investment thesis.

The crux of my investment thesis is that BAM's $67 billion in fundraising leading up to its Q1 2026 earnings call shows that its secular-driven growth isn't slowing down. This is because more institutional and retail investors are increasing their allocation to alternative assets for their returns, low correlation with stock and bond markets, and portfolio diversification. That's driving the forecast for upper-teens percentage annual distributable EPS growth over the next several years.

The 4.3% dividend yield (from the current $47 share price) modestly exceeds the forecast for distributable EPS for 2026. However, the payout is reasonably protected by steady cash flows (87% of fee-bearing capital is long-term or permanent), capital-light business model, and $2.5 billion in corporate liquidity against no debt maturities until 2030 (and an A- S&P credit rating). This gives BAM the confidence that it can deliver 15%+ annual dividend growth.

Appraising the alternative asset manager as a yield vehicle with a growth kicker, shares are trading 18% below my updated fair value per share estimate of $57. This assumes a fair value yield of 3.5% for BAM, which is arguably reasonable even in an elevated rate environment. That's because, while it comes with risks, it offers the potential for significant passive income growth over time. In my opinion, the same simply can't be said about bonds.

Dividend Stock #2: Genpact Limited (G)

The next stock on my watch list for the month ahead is Genpact Limited. For the gist of my investment thesis, I would refer readers to my May 2026 Dividend Stock Purchases/Sales blog post.

Basically, G is an investment-grade IT services and solutions company that I believe can continue to compound its adjusted diluted EPS by around 10% annually. While generative AI fears have caused a sharp selloff in 2026 so far, the Advanced Technology Solutions segment (implementing AI for Fortune 500 businesses) is contradicting the concern that AI is going to replace its business. On the contrary, the ATS segment's net revenue soared 24.3% over the year-ago period in Q1 2026 (to now 27% of total net revenue). All the while, the core business held its own, reporting 1.4% growth in Q1 2026.

The 2.3% dividend yield is very safe, with the payout ratio set to be in the high-teens in 2026. That should power at least 10% annual dividend growth over the next several years.

At the current $33 share price, the stock is trading at a forward 12-month P/E ratio of just 7.7. No, that's not a typo. Yes, you read that right. This is less than half of the 10-year average FAST Graphs P/E ratio of 17.1 and the five-year average of 15.6.

GNG Research

Given G's intact growth prospects, I believe a reversion to 15x is a reasonable base case. That would imply shares are trading at a 49% discount to my $63 fair value per share estimate. Even applying the more conservative $53 fair value per share estimate from my friends over at GNG Research (by the way, anybody signing up with my link above receives 35% off every payment), shares are an undeniable value right now.

Dividend Stock #3: McDonald's Corporation (MCD)

The third stock on my watch list for July 2026 is none other than McDonald's Corporation.

As macro pressures have squeezed discretionary budgets, lower consumers have become especially selective. My investment thesis centers on MCD dominating the value wars and reclaiming traffic, with everyday menus priced under $3 alongside targeted promotions, such as the $4 Breakfast Meal Deal. Then, there's the fact that more than 95% of locations operate under franchised models (all but 2,027 of the nearly 45,700 systemwide restaurants). 

In essence, McDonald's is both a landlord (the greater of a base minimum rent or a percentage of gross sales generally around 8% to 10% is paid in rent) and a tollbooth-like franchisor (franchisees typically pay a royalty fee of 4% to 5% of gross monthly sales). When the cost of inputs like beef, potatoes, and labor go up, franchisees are typically forced to raise menu prices to protect unit economics. In turn, MCD takes its cut of these larger sales stemming from inflation right off the top.

That's why the FAST Graphs analyst consensus is for 8.1% annual non-GAAP diluted EPS through 2028, off a 2025 base of $12.20. MCD also enjoys a BBB+ S&P credit rating with a stable outlook.

The 2.6% dividend yield is also secure, with the payout ratio poised to be in the mid to high-50% range in 2026. That should enable decent dividend growth over the next few years.

GNG Research

From the current $282 share price, the stock is arguably somewhat undervalued, too. MCD is priced at a forward 12-month P/E ratio of 20.9. This is moderately below the 10-year average P/E ratio of 25.2 and  is 9% under my fair value per share estimate of $311 (a fair value P/E ratio of 23, which is almost a standard deviation less than the 10-year average). GNG Research is even more bullish, with a $349 fair value per share estimate.

Dividend Stock #4: Microsoft Corporation (MSFT)

The next stock on my watch list for the upcoming month is Microsoft Corporation. This one has been no stranger to the list in recent months, so I would encourage readers to check out my June 2026 Stock Watch List blog post for my investment thesis.

Essentially, MSFT has big growth catalysts with cloud computing, enterprise software, and AI. These secular tailwinds are why FAST Graphs anticipates upper teens percentage annual non-GAAP diluted EPS growth through FY 2028, off a FY 2025 base of $13.64.

MSFT is the only tech company in the world with a flawless AAA S&P credit rating with a stable outlook. The 0.9% dividend yield is modest. However, with the payout ratio likely to be in the low-20% range for FY 2026, there's plenty of room for 10%+ annual dividend growth to persist.

At the current $403 share price, the stock is trading at forward 12-month P/E ratio of 20.9. That's well below the 10-year average P/E ratio of 29 and 25% under my fair value per share estimate of $539 (a fair value P/E ratio of 28).

Dividend Stock #5: NVIDIA Corporation (NVDA)

The fifth stock on my watch list for July 2026 is NVIDIA Corporation. Just like MSFT, I'm running this one back.

This is because NVDA is a paradoxical example of a stock that doubles as a value stock (more on that in a second) and a growth stock. The continued AI infrastructure buildout around the world has the FAST Graphs analyst consensus for FY 2027 (ending in January 2027) non-GAAP diluted EPS soaring 86.4% to $8.89. In FY 2028, another 38.3% spike is anticipated to $12.29. For FY 2029, an additional 21.1% surge to $14.88 is the current consensus. So, that's the growth aspect of NVDA.

Not to mention that shares are trading at a forward 12-month P/E ratio of just 20.5. That's a fraction of the 10-year average P/E ratio of 44.3 and the 20-year average P/E ratio of 35.1! It's also cheaper than the S&P 500.

The balance sheet is also world-class, with an AA- S&P credit rating and a stable outlook. As if this wasn't enough, NVDA is also now a dividend growth stock after its whopping 2,400% hike in the quarterly dividend per share to $0.25 last month. All the while, the payout ratio is set to be roughly 9% in FY 2027. In other words, more strong dividend growth is likely on the way. That's why I'm excited about a seemingly small 0.5% yield.

GNG Research

Even my rather conservative fair value P/E ratio of 30 yields a fair value per share estimate of $303. That's up from my prior fair value estimate of $265 and is 32% below the current share price. GNG Research's potentially more base-case fair value of $355 would represent a staggering 42% discount to fair value.

Concluding Thoughts:

That's all for now. Based on my currently planned allocations to each, my yield will be around 2.2% (I'll probably add a small position in an existing qualitative high-yielder to juice this a bit further). This isn't the most impressive yield, but for my money, I think this is a fantastic basket of stocks that offers a bit of everything.

Discussion:

Are any of BAM, G, MCD, MSFT, or NVDA on your watch list for July 2026?

If not, what stocks are you monitoring in the month ahead?

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

May 2026 Dividend Income

As I'm writing this blog post, it's currently Tuesday, June 2nd. The temperature here in Central Wisconsin is set to reach a high of 81 degrees Fahrenheit today with a sunny forecast. So, I plan on spending some time outside for sure!

Now that May 2026 is complete, I figure it would be a fitting time to briefly highlight my dividend income for the month. Let's dive into it!

Net Dividend Income Surpassed $700

In May 2026, I collected $737.61 in net dividends (including ADR fees for British American Tobacco). This is equivalent to a 5.4% quarterly growth rate over the $699.63 in net dividends received in February 2026.

My net dividends collected in May 2026 were also 29.8% higher over the $568.35 in net dividends recorded in May 2025.

In my Charles Schwab account, I received $683.84 in net dividends from 18 companies. The lower company count was due to the sales of Bristol Myers Squibb and AT&T in February 2026. First-time distributions from Western Midstream (WES) and capital allocation in recent months powered my net dividends higher in this account.

My Robinhood IRA portfolio collected $36.57 in net dividends from four companies. This higher income was mostly fueled by my purchase of 23 shares of NNN REIT (NNN) in February 2026.

In my Webull account, I received $17.20 in net dividends from three companies.

Concluding Thoughts:

May 2026 represented the first time that the portfolio breached $700 in the middle month of a quarter. Through the first five months of 2026, my net dividends are up 28.3% versus the first five months of 2025. By God's grace, keeping the pedal to the medal with my high savings rate, stacking up dividend growth, and reinvesting dividends, I hope to keep this in the high-20% range in 2026.

Discussion:

How was your dividend income in May 2026?

Did you receive any first-time passive income as I did with WES in May 2026?

I appreciate your readership and welcome your comments below!

May 2026 Dividend Stock Purchases/Sales

As I'm writing this blog post, it's currently Tuesday, May 26th. The temperature here in Central Wisconsin is currently 88 degrees Fahrenheit, with the high set to reach 89 later today. The forecast is sunny as well, so it will be as important as ever to stay hydrated!

With the month of May almost complete, now is a great time for me to highlight my dividend stock purchases and sales for the month. Without further ado, let's jump into it!

Dividend Stock Purchase #1: Brookfield Asset Management (BAM)

I added another 22 shares of Brookfield Asset Management at an average cost of $47.89 per share. In my May 2026 Stock Watch List blog post, I provided my investment thesis for BAM. The $44.22 lift in net annual forward dividends equates to a 4.20% net dividend yield.

Dividend Stock Purchase #2: Carlisle Companies (CSL)

My next purchase was two more shares of Carlisle Companies at an average price per share of $356.11. Interested readers can find my investment thesis in my May 2026 Stock Watch List blog post linked above. The $8.80 in net annual forward dividends added is equivalent to a 1.24% net dividend yield.

Dividend Stock Purchase #3: Intuit (INTU)

I also added another three shares of Intuit at an average cost of $370.92 per share. Again, readers can check out my investment rationale in my May 2026 Stock Watch List blog post. The $14.40 increase in net annual forward dividends works out to be a 1.29% net dividend yield.

Dividend Stock Purchase #4: Mastercard (MA)

My next purchase was an additional share of Mastercard for $506.03. The $3.48 in net annual forward dividends added from this purchase equates to a 0.69% net dividend yield.

Dividend Stock Purchase #5: Meta Platforms (META)

I also added a share of Meta Platforms for $613.72. My investment thesis can be found in my May 2026 Stock Watch List blog post. The $2.10 increase in my net annual forward dividends is equivalent to a 0.34% net dividend yield.

Dividend Stock Purchase #6: NNN REIT (NNN)

My next purchase was another 31 shares of NNN REIT at an average price per share of $43.64. Curious readers can peruse my May 2026 Stock Watch List blog post for my investment thesis. The $74.40 boost in net annual forward dividends works out to be a 5.50% net dividend yield.

Dividend Stock Sales: Aflac (AFL) and Alliant Energy (LNT)

I also closed positions in Aflac (at a roughly 170% gain before dividends) and Alliant Energy (at a roughly 25% gain before dividends). To be clear, I think these are solid businesses. After years of phenomenal dividend raises from AFL, the most recent left a bit to be desired for me as business growth has slowed. Couple that with what I think is an elevated valuation, and I sold my 11 shares at $118.95 each. 

I like LNT, but the valuation looks a bit stretched to me here as well. Thus, I sold my 13 shares of LNT at $72.27 apiece.

These actions reduced my net annual forward dividends by $54.66.

Dividend Stock Purchase: Genpact Limited (G)

I took my proceeds and pitched in another $316.49 of cash accrued from dividends to purchase a 79 share starter position in Genpact Limited for $32.46 a share. In covering this for Sure Dividend over the years, it has been on my radar for a while. My rationale for the buy is that G is an investment-grade IT services and solutions company with 9% to 10% annual adjusted diluted EPS growth prospects. Yet, generative AI fears have led it to shed roughly one-third of its market value this year.

All the while, its Advanced Technology Solutions segment posted 24.3% net revenue growth (now 27% of total net revenue) in Q1 2026. The core business was stable, edging 1.4% higher in Q1 2026. In other words, instead of being replaced by AI, G's ATS segment is being paid by Fortune 500 enterprises to implement AI.

My entry point represents a forward 12-month P/E ratio of 7.7. For more context, that's less than half of the 10-year average P/E ratio of 17.1 and about half of my fair value P/E ratio of 15. Compared to the high single-digit percentage annual total return potential from AFL and LNT, G has a realistic path to 20%+ annual total returns. The dividend is also very secure, with a payout ratio in the high-teens, which should facilitate roughly 10% annual payout growth over the next several years.

This move added $59.25 to my net annual forward dividends.

Concluding Thoughts:

In May 2026, I deployed $5,667.47 in net capital. Including the $4.59 increase from capital deployment, my net annual forward dividends rose by $151.99 in May 2026. That equates to a 2.68% net dividend yield.

My net annual forward dividends rose by $80.12 from dividend raises as well. This took my net annual forward dividends from $7,385 at the start of this month to roughly $7,620 going into June 2026.

Discussion:

How was your capital deployment for May 2026?

Did you close any positions or open any new positions during the month?

Thanks for reading and please feel free to comment below!

Expected Dividend Increases for June 2026

As I'm writing this blog post, it's currently Saturday, May 16th. The temperature here in Central Wisconsin is already over 70 degrees Fahrenheit and expected to reach a high of 83 degrees later today. Better yet, the forecast is also sunny. Needless to say, I will be spending some time outside!

Now that the month is half over, I figured now would be a good time to discuss the dividend raises that I have received to date (I will update the others as they are declared). I will also be previewing the payout increases that I'm expecting in June 2026. Let's dig into it!

Actual Dividend Increases for May 2026

Dividend Increase #1: Main Street Capital Corporation (MAIN)

As I predicted in this series' previous blog post, Main Street Capital declared a 1.9% increase in its monthly dividend per share to $0.2650.

Across my 30 shares of MAIN, my net annual forward dividends grew by $1.80 due to this dividend declaration.

Dividend Increase #2: RTX Corporation (RTX)

RTX Corporation announced a 7.4% raise in its quarterly dividend per share to $0.73. This came in a bit below the 8.8% boost to $0.74 that I was anticipating.

My net annual forward dividends rose by $2.40 across my 12 shares of RTX from this dividend announcement.

Surprise Announcement: NVIDIA Corporation (NVDA)

In stunning fashion, NVIDIA showed the world how dividend growth is done. It declared a whopping 2,400% boost in the quarterly dividend per share from $0.01 to $0.25.

Across my 77 shares of NVDA, my net annual forward dividends soared by $73.92 due to this dividend declaration.

Pending Dividend Increase: Lowe's Companies (LOW)

Lowe's Companies has yet to declare its next dividend. So, I'm now pushing this back into June. I'm maintaining my forecast for a 4% raise in the quarterly dividend per share to $1.25.

Across my 10 shares of LOW, my net annual forward dividends would edge $2 higher due to such a dividend declaration.

UPDATE: As expected, LOW upped its quarterly dividend per share by 4% to $1.25. This raised my net annual forward dividends by $2.

Expected Dividend Increases for June 2026

Expected Dividend Increase #1: FedEx Corporation (FDX)

The first dividend hike that I'm expecting in June 2026 will be from FedEx Corporation. I believe that FDX will declare an 8.3% hike in its quarterly dividend per share to $1.57.

Across my four shares of FDX, my net annual forward dividends would rise by $1.92 due to such a dividend declaration.

Expected Dividend Increase #2: Realty Income Corporation (O)

The next dividend raise that I'm anticipating for next month will come from Realty Income Corporation. My best guess is that O will announce a 1.7% increase in its monthly dividend per share to $0.2750.

My net annual forward dividends would jump $8.262 across my 153 shares of O from such a dividend announcement.

Expected Dividend Increase #3 UnitedHealth Group Incorporated (UNH)

The third dividend boost that I'm predicting in June 2026 will be from UnitedHealth Group Incorporated. My guess is that UNH will declare a 6.3% raise in its quarterly dividend per share to $2.35.

Across my 13 shares of UNH, my net annual forward dividends would climb $7.28 higher due to such a dividend declaration.

Pending Dividend Increase: Medtronic plc (MDT)

Medtronic plc also hasn't announced its next dividend yet. I'm now pushing MDT back into June. However, I'm sticking with my projection of a 5.6% increase in the quarterly dividend per share to $0.75.

My net annual forward dividends would grow by $2.08 across my 13 shares of MDT from such a dividend announcement.

Concluding Thoughts:

My net annual forward dividends rose by $80.12 in May 2026. That would be equivalent to investing $2,670.67 at a 3% net dividend yield.

If my dividend boosts for June 2026 pan out, my net annual forward dividends would grow by $19.542. This would be like investing $651.40 at a 3% net dividend yield.

Discussion:

How has your May 2026 been for payout raises?

Did you receive any first-time dividend boosts during the month?

I appreciate your readership and welcome your comments below!