Applied Materials and D.R. Horton Among Top 50 Dividend Growth Stocks in September 2026

Investors seeking dividend growth stocks had a wide range of selection criteria available in October 2026. Screening approaches range from conservative dividend safety ratings to aggressive yield strategies. Applied Materials (AMAT) and D.R. Horton (DHI) were already among the prominent names in high-quality dividend growth stocks in September 2026.

Screening Criteria for Dividend Growth Stocks in October 2026

Financial analysts and investment platforms use different approaches to identify dividend growth stocks. A common standard relies on dividend safety ratings of 8.0 or higher, forward yields of at least 2.5 percent, and a valuation at or below estimated fair value, as investment blog DivGro reported on October 12, 2026. These criteria aim to identify companies with stable payouts and upside potential.

The average dividend yield of the S&P 500 was approximately 1.1 percent in October 2026, as Sure Dividend reported on October 7, 2026. Investors seeking higher current income focus on stocks with yields of 4.0 percent or more. Some dividend stocks recommended in October 2026 even had payouts exceeding 6 percent, as Yahoo Finance reported on October 6, 2026.

September Ranking: AMAT and DHI Among Top 50

Applied Materials and D.R. Horton appeared on a list of 50 high-quality dividend growth stocks published on September 14, 2026 on Seeking Alpha. The list encompassed a broad range of sectors and industries, including technology stocks such as Qualcomm (QCOM), Microsoft (MSFT) and KLA Corporation (KLAC) as well as consumer goods manufacturers like Nike (NKE) and TJX Companies (TJX).

The complete September list also included: Eli Lilly (LLY), Watsco (WSO), Paychex (PAYX), NetEase (NTES), Old Dominion Freight Line (ODFL), Mastercard (MA), Visa (V), Accenture (ACN), Starbucks (SBUX), Ferrari (RACE), Hershey (HSY), Domino's Pizza (DPZ), EOG Resources (EOG), West Pharmaceutical Services (WST), as well as the index funds SPY and SCHD. Additional names included FactSet (FDS), Dick's Sporting Goods (DKS), Monolithic Power Systems (MPWR), Mueller Industries (MLI), Ross Stores (ROST), Fastenal (FAST), ResMed (RMD), Toro Company (TTC), Zoetis (ZTS), Pool Corporation (POOL), MSCI, Amphenol (APH), Rollins (ROL), Jack Henry & Associates (JKHY), Graco (GGG), Trane Technologies (TT), Allegion (ALLE), Garmin (GRMN), Lincoln Electric (LECO), NXP Semiconductors (NXPI), MarketAxess (MKTX), Cintas (CTAS), W.W. Grainger (GWW) and HCA Healthcare (HCA).

October Rankings with Focus on Growth and Valuation

On October 1, 2026, Seeking Alpha published a list of the top 25 growth-oriented dividend stocks for October 2026. This selection targeted high-quality companies that were trading at an average of 31 percent below their intrinsic value at that time. The projected annual return for these stocks was 22.53 percent.

The focus on undervalued quality stocks distinguishes this approach from pure high-yield strategies. While some investors pursue maximum current income, other investors prefer companies with moderate payout ratios and potential for future dividend increases.

Dividend Kings as Stability Anchors

Among the most consistent dividend payers are the so-called Dividend Kings – companies that have increased their payouts for at least 50 consecutive years. Procter & Gamble belongs to this exclusive group and had a payout ratio of approximately 70 percent at the end of September 2026, as Morningstar reported on September 29, 2026. A payout ratio of 70 percent means that the company distributes 70 percent of its earnings to shareholders, while retaining 30 percent for investments and debt reduction.

Such long-term dividend raisers offer investors historical reliability, but often trade at moderate valuations with lower growth rates than younger, more dynamic companies.

Market Environment in October 2026

The U.S. stock markets showed strength in early October 2026. The S&P 500 closed on Wednesday, October 9, 2026, at 2:00 p.m. CEST at 7,811.54 points and gained 0.59 percent or 46.18 points from the previous day's close. The NASDAQ Composite stood at 27,366.17 points at the same time, up 0.64 percent or 172.83 points from the previous day's close.

This stable market environment provides a favorable starting position for dividend investors, but also carries the risk that high-quality stocks are already trading near or above their fair value. The search for undervalued dividend growth stocks therefore requires a selective approach and consideration of company- and industry-specific factors.