3 Dividend Stocks That Are Quietly Crushing the Market
Key Points
Broadcom has increased its dividend by 13x over the last 10 years.
Enterprise Products Partners continues to benefit from increased global demand for U.S. oil and gas.
Texas Instruments has generated outstanding returns in 2026 and continued to grow its dividend.
- 10 stocks we like better than Texas Instruments ›
Which is most associated with income investing: explosive returns or stability? I suspect most people would go with the latter answer. However, it's possible to enjoy both explosive returns and stable dividends.
We're seeing that to be the case so far in 2026. Three dividend stocks are quietly crushing the market. And each of them could have more room to run.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
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1. Broadcom
Broadcom (NASDAQ: AVGO) has handily beaten the broader market in 2026. The semiconductor stock posted impressive gains despite falling as much as 15% in the first four months of the year.
To be sure, Broadcom's forward dividend yield of only 0.6% isn't so impressive. However, the company has increased its dividend payout by a whopping 13x over the last 10 years, with a compound annual growth rate of roughly 30%. This jaw-dropping dividend growth is a direct result of Broadcom's strong free cash flow.
Broadcom has also rewarded shareholders with what some view as an "invisible dividend" -- stock buybacks. The company repurchased $7.8 billion of its shares in the first quarter of 2026, more than double the amount it paid in dividends.
The technology leader should have no problems continuing to grow its dividend. But can its stock keep outperforming the market? Probably so. The consensus Wall Street 12-month price target for Broadcom reflects a potential upside of around 14%. The company's AI business is especially strong, with revenue growth accelerating.
2. Enterprise Products Partners
Uncertainty created by the war with Iran has provided a tailwind for Enterprise Products Partners (NYSE: EPD) in 2026. The pipeline stock has risen nearly as much as Broadcom year to date, thanks largely to higher global demand for oil and gas produced in the U.S.
Like Broadcom, Enterprise Products Partners is also a beneficiary of the AI boom. AI data centers require enormous amounts of reliable power. Natural gas is an ideal fuel for the power plants serving these facilities. Enterprise owns more than 50,000 miles of pipeline, with roughly two-thirds of its gross operating margin stemming from the transportation or processing of natural gas liquids and natural gas.
Enterprise Products Partners is an income investor's dream stock. The limited partnership (LP) has increased its distribution for 27 consecutive years, a period that included several major challenges for the energy sector. Enterprise's distribution yield currently hovers around 5.8%.
The midstream energy company's distributions should be highly reliable going forward, especially given that around 90% of Enterprise's long-term contracts include escalation provisions that protect its cash flow from eroding due to inflation. Its growth prospects are solid as well, with the demand for U.S. natural gas expected to increase over the next five years.
3. Texas Instruments
Texas Instruments (NASDAQ: TXN) ranks as the biggest year-to-date winner of these three dividend stocks. The semiconductor maker's shares have consistently outperformed the S&P 500 (SNPINDEX: ^GSPC) in 2026 but have especially taken off over the last six weeks.
This granddaddy of tech was founded in 1930. It has become a solid pick for income investors, with a 22-year streak of steady dividend increases. Texas Instruments' forward dividend yield tops 1.8%.
The company's dividend program should remain attractive for the foreseeable future. Texas Instruments plans to return between 40% and 80% of its free cash flow to shareholders through dividends. And it expects to continue growing its free cash flow.
Texas Instruments has strong growth prospects across its key markets. Its three biggest opportunities are in providing semiconductors for the industrial, automotive, and data center markets, which together generated roughly 75% of the company's 2025 revenue, up from 43% in 2013.
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Keith Speights has positions in Enterprise Products Partners. The Motley Fool has positions in and recommends Broadcom and Texas Instruments. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy.
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