Why Dividend-Growth Stocks Aren't Just for Income Investors (The Morning Filter Excerpt)

• Dividend growth investing targets companies consistently increasing payouts, often indicating strong fundamentals and competitive positioning.
• This strategy offers a defensive orientation, demonstrating less volatility and better performance during market sell-offs compared to the broader equity market.
• The dividend growth universe is evolving to include more technology stocks, though many offer lower yields compared to traditional dividend payers.
• Dividend growth stocks tend to perform between the broader market and high-dividend-paying stocks, offering a balance of growth and stability.

The discussion centers on dividend growth investing, emphasizing its appeal for long-term portfolio stability and quality. While these stocks have recently lagged the broader market due to the AI rally, they offer defensive characteristics during downturns and are seeing an increasing presence of technology companies.