Zacks.com featured highlights include Enersys, Micron Technology, Cheesecake Factory, Suncor Energy and Taiwan Semiconductor
For Immediate Release
Chicago, IL – October 13, 2026 – Stocks in this week’s article are Enersys Inc. ENS, Micron Technology MU, Cheesecake Factory CAKE, Suncor Energy SU and Taiwan Semiconductor TSM.
5 Dividend Growth Stocks to Buy Ahead of U.S. Inflation Data
All three major U.S. stock indices ended the previous week in the green zone as equities made a rebound from a tech-led sell-off observed earlier in the week. Meanwhile, assurances from U.S. President Donald Trump that America would not attack Iran before the midterm elections might have helped ease some immediate supply panic and kept the stock market buoyant.
However, as third-quarter earnings season kicks off this week, particularly for banks, uncertainties remain in the form of soon-to-be released inflation data, which could shed light on the Federal Reserve's next policy decision.
Against this backdrop, stock market participants might remain worried about investing in high-multiple, pure-growth stocks.
Instead, dividend growth stocks offer an appealing sweet spot: combining steady income generation, lower equity volatility and long-term compounding power amid macro uncertainty.
These companies boast a proven track record of increasing payouts, underscoring the balance-sheet strength and cash-flow resilience required to navigate a market environment where traditional growth narratives are being reassessed.
Stocks with a strong history of year-over-year dividend growth can help build a resilient portfolio with greater potential for capital appreciation compared to simple dividend-paying or high-yield stocks.
We have selected five dividend growth stocks, Enersys Inc., Micron Technology, Cheesecake Factory, Suncor Energy and Taiwan Semiconductor, which could be solid choices for your portfolio.
Why Is Dividend Growth Better?
Stocks with a strong history of dividend growth are typically associated with mature companies that are less prone to sharp market swings, allowing them to serve as a hedge against economic or political uncertainty as well as broader market volatility. Their steadily rising payouts provide some measure of downside protection.
These companies are generally backed by solid fundamentals, making them attractive long-term dividend-growth investments. Key strengths include durable business models, consistent profitability, expanding cash flows, healthy liquidity, strong balance sheets and attractive valuations.
A consistent history of dividend growth underscores the potential for continued growth ahead.
Although these stocks do not necessarily have the highest yields, they have outperformed the broader stock market and other dividend-paying stocks over an extended period.
Here are five of the 10 stocks that fit the bill:
Pennsylvania-based EnerSys manufactures, markets and distributes industrial batteries and related stored-energy products. It also develops battery chargers and accessories, power electronics, power equipment and outdoor cabinet enclosures. The Zacks Consensus Estimate for ENS' fiscal 2027 revenues suggests a year-over-year improvement of 3.7%. The stock boasts a long-term (three-to-five years) earnings growth rate of 15% and has an annual dividend yield of 0.64%.
ENS currently carries a Zacks Rank #2 and has a Growth Score of A.
Idaho-based Micron Technology manufactures and markets high-performance memory and storage technologies, including Dynamic Random Access Memory, NAND flash memory, NOR Flash and other technologies. The Zacks Consensus Estimate for MU's fiscal 2028 revenues suggests a year-over-year improvement of 105.1%. The stock boasts a long-term earnings growth rate of 32.60% and has an annual dividend yield of 0.06%.
MU currently sports a Zacks Rank #1 and has a Growth Score of A.
Headquartered in California, Cheesecake Factory is a restaurant and bakery company that owns and operates hundreds of upscale, full-service dining locations. The Zacks Consensus Estimate for CAKE's 2026 revenues suggests a year-over-year improvement of 7.2%. The stock boasts a long-term earnings growth rate of 13.40% and an annual dividend yield of 1.11%.
CAKE currently carries a Zacks Rank #2 and a Growth Score of A. You can see the complete list of today's Zacks #1 Rank stocks here.
Canada-based Suncor Energy is an integrated energy company that extracts, refines, and sells petroleum products, crude oil and lower-carbon power. The Zacks Consensus Estimate for SU's 2026 revenues suggests a year-over-year improvement of 29.7%. The stock boasts a long-term earnings growth rate of 18.80% and an annual dividend yield of 2.40%.
SU currently sports a Zacks Rank #1 and a Growth Score of B.
Headquartered in Taiwan, Taiwan Semiconductor is the world's largest dedicated integrated circuit foundry. The Zacks Consensus Estimate for TSM's 2026 revenues suggests a year-over-year improvement of 37.2%. The stock boasts a long-term earnings growth rate of 27.30% and an annual dividend yield of 0.76%.
TSM currently carries a Zacks Rank #2 and a Growth Score of B.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/3005227/5-dividend-growth-stocks-to-buy-ahead-of-us-inflation-data-release
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
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Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
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7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>Micron Technology, Inc. (MU) : Free Stock Analysis Report
The Cheesecake Factory Incorporated (CAKE) : Free Stock Analysis Report
Suncor Energy Inc. (SU) : Free Stock Analysis Report
Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report
Enersys (ENS) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
