Wolf Research: Top Dividend Growth Stocks with Strong Cash Flow

LootboxPhobia · 2026-02-27T20:47:14+00:00

Wolf Research has identified a group of companies with high dividend growth and strong free cash flow, creating a corresponding investment portfolio that covers industries such as communications, consumer goods, and energy. These companies, such as Nexstar, Comcast, FOX, and others, demonstrate strong financial performance and growth potential, offering diversified investment opportunities for income-focused investors.

LootboxPhobia

2026-02-27 20:47:14

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Investing.com – Wolfe Research has identified a group of companies with both high dividend growth and strong free cash flow yields, and created a thematic investment portfolio.

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This portfolio focuses on companies that have demonstrated strong dividend growth over the past twelve months and possess high unlevered free cash flow yields, offering investors opportunities to invest in companies that generate substantial returns for shareholders.

The selected companies span multiple sectors, from communication services to consumer discretionary and energy, highlighting investment opportunities across the entire market for income-focused investors seeking growth potential.

1. Nexstar Broadcasting Group (NASDAQ:NXST) ranks first, leading the group. This broadcasting company stands out among its peers due to its combination of dividend growth and cash generation capabilities.

Nexstar Broadcasting Group reported Q4 revenue of $1.29 billion and earnings per share (EPS) of $5.63, both surpassing analyst expectations. Following the earnings release, Guggenheim and Benchmark raised their target prices for the company, with Benchmark expressing increased confidence in the TEGNA acquisition.

2. Comcast Corp. (NASDAQ:CMCSA) ranks second, with a market cap of $113.5 billion. This telecom giant has a P/E ratio of 8.6, an unlevered free cash flow yield of 9%, and a dividend yield of 4.2%. The company’s dividend grew by 36%, though it declined 6% year-over-year.

Comcast reported Q4 EPS of $0.84, beating analyst estimates, though revenue was slightly below forecasts. The company also recently completed a trial using quantum computing algorithms to improve network routing.

3. Twenty-First Century Fox, Inc. (NASDAQ:FOXA) ranks third, with a market cap of $22.9 billion. Its P/E ratio is 12.1, unlevered free cash flow yield is 7%, and dividend yield is 1.0%. The dividend increased by 12%, with a 4% year-over-year growth.

FOX Corp. received an upgrade to buy from Seaport Global Securities, while Guggenheim and Bank of America Securities also raised their target prices. Additionally, Fox News Media announced six executive promotions within its editorial leadership team.

4. Booking Holdings (NASDAQ:BKNG) ranks fourth, with a market cap of $133.5 billion. Its P/E ratio is 15.4, unlevered free cash flow yield is 8%, and dividend yield is 0.9%. The dividend grew by 14%, though it declined 17% year-over-year.

Booking Holdings reported strong Q4 results, with revenue and EBITDA exceeding expectations. After the earnings release, Morgan Stanley upgraded the stock, while other firms lowered their target prices due to valuation and AI-related uncertainties.

5. BorgWarner Inc. (NYSE:BWA) ranks fifth, with a market cap of $12.9 billion. Its P/E ratio is 12.1, unlevered free cash flow yield is 7%, and dividend yield is 1.1%. The dividend increased by 13%, with an outstanding 110% year-over-year growth.

Recently, BorgWarner announced Q4 earnings and revenue that beat Wall Street estimates. The company also received an upgrade from Deutsche Bank, which highlighted BorgWarner’s strategic move into the AI data center market.

6. The Gap, Inc. (NYSE:GPS) ranks sixth, with a market cap of $10.3 billion. Its P/E ratio is 11.9, unlevered free cash flow yield is 6%, and dividend yield is 2.4%.

The Gap announced a 6% increase in quarterly dividends and received an upgrade to outperform from Baird. Moody’s also revised the company’s outlook to positive, citing improved operational performance.

7. Primo Brands Corp. (NYSE:PRMB) ranks seventh, with a market cap of $6.7 billion.

Primo Brands reported better-than-expected Q4 results, driven by sales of premium brands and significant growth in adjusted EBITDA. Following the earnings, Jefferies raised its target price for the stock.

8. Albertsons Companies, Inc. (NYSE:ACI) ranks eighth, with a market cap of $9.5 billion.

Albertsons issued $2.1 billion in new senior notes to refinance existing debt. The company also appointed McDonald’s CIO Brian Rice to its board and named a new chief human resources officer.

9. Plains All American Pipeline, L.P. (NASDAQ:PAA) ranks ninth, with a market cap of $14.4 billion.

Plains All American Pipeline reported Q4 earnings and revenue that fell short of analyst expectations. Despite mixed results, Goldman Sachs and BofA Securities raised their target prices for the company.

10. Viper Energy Partners LP (NASDAQ:VNOM) ranks last on the list.

Viper Energy Partners reported mixed Q4 results, with revenue and EPS slightly below analyst forecasts.

This article was translated with the assistance of artificial intelligence. For more information, please see our Terms of Use.

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