3 Dividend Stocks for February 2026
All three of these dividend-payers receive wide moat ratings from Morningstar equity analysts.
David Harrell: Hi, I’m David Harrell, editor of the Morningstar DividendInvestor newsletter. In this monthly series, we take a look at the dividend prospects of three stocks that are popular with income investors.
3 Dividend Stocks for February 2026
Coca-Cola, which receives a wide moat rating from Morningstar equity analysts, is a dividend king, having raised its per-share dividend every year for the past 63 years. The stock currently yields 2.8%, in line with its five-year average, and down from 3.1% a year ago due to share price appreciation, with 3.9% annualized dividend growth over the past five years. The company’s payout ratio popped above 80% in 2020 but has trended downward since then and is now below 70%. Morningstar analysts forecast that the annual dividend, currently $2.4 per share, will increase to $2.65 by 2029. Given the timing of past increases, Coke is likely to declare its next dividend raise sometime this month. The stock currently trades near its $74 Morningstar fair value estimate.
Domino’s Pizza, which also receives a wide moat rating, currently yields 1.7%. While that probably isn’t compelling to some income-focused investors, the company has increased its dividend at a phenomenal rate over the past five years, 18.4% annualized. And Morningstar analysts expect continued strong dividend growth, forecasting that the current annual dividend of $6.96 per share to rise to $11.64 by 2029. Their forecast suggests that the firm has ample capacity to raise the dividend by 14.5% per year, implying a payout ratio of 45% over their forecast period, which is a little higher than the firm’s 31% historical rate. Like Coke, Domino’s is likely to declare its next dividend increase this month. The stock currently trades at a 5% discount to its $436 fair value estimate, placing it in the 3-star territory.
Wide-moat Texas Instruments is closing in on dividend aristocrat status, as its 4.4% raise last fall was the company’s 22nd consecutive annual dividend increase. The stock currently yields 2.7%, in line with its five-year average of 2.6%, with 10.4% annualized dividend growth over the past five years. Morningstar analysts forecast that the current annual dividend rate of $5.68 will increase to $6.46 by 2029. When assessing the company’s capital allocation, they said the management team has done an excellent job focusing on redistributing excess cash to shareholders. They were also encouraged by management’s goal to convert 25%-35% of its revenue into free cash flow, and its intention to distribute 100% of that free cash flow, less debt repayment, to shareholders. After the release of fourth-quarter returns last week and strong revenue guidance by management for the first quarter of 2026, Morningstar analysts increased their fair value estimate to $210 per share from a $177, and the stock is currently trading in line with that new estimate.
I’m David Harrell from Morningstar DividendInvestor. Thanks for watching.
Watch 3 Dividend Stocks for January 2026 for more from David Harrell.
The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar’s editorial policies.
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