3 Dividend Stocks Raising Their Payouts as Investors Search for Growth and Income

It's hard to be an investor in 2026 without a sound strategy. For growth investors, artificial intelligence (AI) stocks are still a good option. But many of these names carry more volatility than risk-averse investors would like to take on.

Income-oriented investors often turn to fixed-income investments. But what these investments provide in stability, they come at the expense of growth.

That's why many investors are turning to quality dividend stocks. These investments can provide a solid mix of growth and income, increasing an investor's total return. And when companies increase their dividend, it creates a compounding effect that, over time, can lead to gains that exceed those of many growth stocks.

Many companies use earnings season as an opportunity to announce dividend increases. But before looking at each stock, it's important to explain why all dividend stocks aren't alike.

Dividend Growth Matters More Than a High Yield

In many cases, dividend analysis starts with a stock's dividend yield. Conventional wisdom holds that the higher the yield, the better the dividend. That's not a bad premise, but it's not the whole story. In fact, in some cases, the yield can mask a company's underlying problems.

A better indicator of dividend quality is when a company increases its payout. The dividend is frequently paid out of earnings. So when a company increases its dividend payout, it's making a statement about the stability and likely growth of future earnings.

That can create a virtuous cycle in which earnings growth fuels dividend growth, which fuels stock price growth. That combination of growth and income builds on itself year after year.

One way to identify dividend raisers likely to increase their payouts is to look for stocks with current or future catalysts. Here are three stocks that have increased their dividends and the catalysts likely to drive further dividend growth.

Omega Healthcare Stock Offers High Yield and Dividend Growth

Omega Healthcare (NYSE: OHI) is an example of a dividend stock that offers both a high yield and an opportunity for solid future growth. The real estate investment trust (REIT) is the largest pure-play skilled-nursing landlord in the country. That positioning plays well as the aging-of-America narrative, pitched 20 years ago, is now a reality.

Over the last 20 years, OHI has delivered a total return of over 1,200%. That's due in no small part to the company's dividend. REITs have tax advantages that require them to pay out a high percentage of their earnings as dividends.

That doesn't necessarily mean the company will increase its dividend. But Omega recently did just that as tenant coverage rates recover. At 68 cents per share and with a dividend yield of 5.79%, OHI is worth a look, particularly for investors who believe the payout will continue to increase.

Clorox Stock Shows the Power of Dividend Aristocrat Status

When it comes to slow and steady compounding, The Clorox Company (NYSE: CLX) shows why it can be a core holding in a dividend portfolio. Consumer staples stocks have been brutal for growth investors as inflation and higher interest rates drive shifts toward private-label brands.

Clorox has not been immune. The company was a superstar during the pandemic, but has come through harder times since then. Still, CLX has delivered a total return of over 220% over the last 20 years, and the dividend is a key reason.

Despite the ups and downs, Clorox has continued to increase its dividend. In fact, the company is part of an exclusive group of stocks known as Dividend Aristocrats that have increased their payout for at least 25 consecutive years. Investors also get a yield of 4.62%, which is well above the sector average.

Ashland Stock Combines Dividend Growth With Upside Potential

Ashland Inc. (NYSE: ASH) is a materials company that focuses on specialty chemicals. ASH is up over 34% in the last 12 months, with most of that gain coming in 2026. That growth comes despite material internal manufacturing disruptions at the company's Hopewell facility and the Calvert City outage

However, analysts have been raising their price targets above the current consensus price of $73.90.

The nature of the company's business is cyclical. That hasn't kept the company from increasing its dividend for 16 consecutive years. That growth has come at an annual growth rate of 8.3% over the last five years.

That dividend currently yields 2.32%, but the stock has had a total return similar to Clorox over the last 20 years. That's a dynamic that investors can get behind.

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