My Top Dividend Growth Picks In Each GICS Sector

To minimize the risk of dividend cuts, I invest only in the highest-quality dividend growth [DG] stocks. I use a quality scoring system to assess the quality of DG stocks. My quality scoring system blends qualitative expert assessments with quantitative financial metrics and rates DG stocks on a 10-point scale across 9 weighted factors.

Sector diversification is one of the most effective ways to manage risk and build a resilient investment portfolio. By spreading investments across sectors, a downturn in one industry won't drag down your entire portfolio. Different sectors perform well at different stages of the economic cycle. Cyclical sectors thrive when the economy is booming, while defensive sectors are resilient during a recession.

This article presents my top dividend growth picks for each of the 11 GICS sectors. I provide 2 DG stocks per sector, the sector winners and the runners-up by quality score. As always, I present the picks in tables with key metrics, my consensus fair value, and quality scores.

TSMC Dividend Increase

On 12 May, TSMC (TSM) increased its quarterly dividend by 16.67%, from $30 TWD to $35 TWD per share.

The dividend is payable on 8 October to shareholders of record on 22 September. The ex-dividend date is 16 September.

TSM's contribution to DivGro's projected annual dividend income will increase by approximately $40.53 to $258.36.

10 Dividend Growth Stocks for May 2026

This monthly article series identifies 10 Dividend Growth Stocks for further research and possible investment.

I present the top-ranked candidates based on quality scores. These high-quality dividend growth stocks are candidates for your dividend growth portfolio.

As always, I recommend doing your own analysis before investing in these stocks.

This month, I'm presenting dividend growth stocks with forward yields of at least 1%, quality scores above 7.0, and consensus upside of at least 10%.

KLA Dividend Increase

On 8 May, KLA (KLAC) increased its dividend by 21.05%, from $1.90 to $2.30 per share.

The dividend is payable on 2 June to shareholders of record on 18 May. 

KLAC's contribution to DivGro's projected annual dividend income will increase by $32 to $184.

Main Street Capital Dividend Increase

On 5 May, Main Street Capital (MAIN) increased its dividend by 1.92%, from 26¢ to 26.5¢ per share.

The dividend is payable on 15 July 2026 to shareholders of record on 8 July 2026. 

MAIN's forward yield is 5.54% at $57.36 per share.

Home Run Number 63

Today, I'm happy to announce DivGro's 63^rd Home Run!

I call the stocks in my DivGro portfolio Home Runs after they double my original investment on a total-return basis.

As a dividend growth investor, I invest in high-quality dividend growth stocks with long histories of increasing annual dividend payouts. 

There's rarely a reason to sell high-quality dividend-growth stocks if the company's underlying fundamentals don't change. And if you hold such stocks long enough, they'll eventually double your original investment in total return!

Apple Dividend Increase

On 30 April, Apple (AAPL) increased its dividend by 3.85%, from 26¢ to 27¢ per share.

The dividend is payable on 14 May to shareholders of record on 11 May.

AAPL's contribution to DivGro's projected annual dividend income will increase by $3 to $81.

Alphabet Dividend Increase

On 29 April, Alphabet (GOOG) increased its dividend by 4.76%, from 21¢ to 22¢ per share.

The dividend is payable on 15 June to shareholders of record on 8 June.

GOOG's contribution to DivGro's projected annual dividend income will increase by $2 to $44.

PACCAR Dividend Increase

On 29 April, PACCAR (PCAR) increased its dividend by 6.06%, from 33¢ to 35¢ per share.

The dividend is payable on 3 June to shareholders of record on 13 May.

PCAR's contribution to DivGro's projected annual dividend income will increase by $8 to $140.

9F Dividend Quality Scores : Factor 2 – Dividend Track Record

I've been building a new quality scoring system that rates dividend stocks on a 10-point scale across nine weighted factors. 

Each factor blends qualitative expert assessments from independent sources with quantitative financial metrics, such as payout ratios, growth rates, and leverage. 

The goal is a single, defensible number that captures a dividend stock's overall quality.