Under-the-radar doesn’t mean under-quality. We share six dividend growers most investors ignore—and explain the simple filter we used to find them. You’ll get the quick thesis, the key risks, and where each one fits in a portfolio.
You’ll Learn
Why “quiet compounders” win
Lesser-known names often have sticky revenue, recurring cash flows, and room to run—if you can be patient while the market catches up.
How we screen with the Dividend Triangle
Five-year trends in revenue, EPS, and dividends narrow the field to businesses that are already executing, before we dive deeper on debt, cash flow, and capital allocation.
Small-cap reality check
Smaller names can outperform in bull markets but swing harder in drawdowns. Size positions accordingly and demand balance-sheet discipline.
Jamieson Wellness (JWEL.TO) — Vitamins with brand power
- Thesis: Category leader in Canada with repeat-purchase products and international growth (notably China/US). Mix of organic growth + acquisitions; brand marketing drives share gains.
- Watch for: Heavy ad spend vs. margin, formidable global competitors, and local rivals in overseas markets.
Roper Technologies (ROP) — Vertical-market software flywheel
- Thesis: Recurring, sticky software across niche verticals; disciplined, tuck-in acquisitions compound cash flows; 17+ years of double-digit dividend growth.
- Watch for: Acquisition pacing/price discipline, integration risk, and the need for larger deals as the base gets bigger.
Exchange Income (EIF.TO) — Monthly payer with two engines
- Thesis: Northern aviation services (sticky, limited competition) plus diversified manufacturing; resilient dividend through COVID, then resumed growth.
- Watch for: Debt to fund acquisitions, cyclical manufacturing, and small-cap volatility (expect sharper drawdowns).
A. O. Smith (AOS) — Unsexy, essential, durable
- Thesis: Dominant in water heaters/boilers and water treatment; U.S. replacement cycle + China/India water infrastructure = long runway; Dividend Aristocrat.
- Watch for: International competition, tariffs/margin pressure, and execution in fragmented water-treatment markets.
TerraVest Industries (TVK.TO) — Energy-adjacent equipment, not a commodity bet
- Thesis: Specialized tanks, compressed-gas/storage, HVAC gear; acquisition machine now layered with service/maintenance revenue; low payout with room for raises.
- Watch for: Past dividend freeze (pre-2022), integrating deals, and elevated expectations after a strong run.
HCA Healthcare (HCA) — Scale matters in hospitals
- Thesis: Largest U.S. operator, concentrated in high-growth states (TX, FL); data-driven ops, multiple profit centers per patient, strong Dividend Triangle.
- Watch for: Capital intensity, labor inflation, reimbursement/regulatory shifts, and a growing debt stack to fund expansion.
Process Takeaways
-
Numbers first, story second
Start with the Triangle (sales, EPS, dividend up) to avoid narrative traps, then underwrite moat, capital allocation, and balance-sheet risk. -
Position sizing beats prediction
Let quality drive inclusion and risk drive weight. Pair small- and mid-cap stocks with steadier core holdings. -
Patience is an edge
If a few investors follow a name, multiple expansions can lag business results—until it doesn’t. Give winners time.
Related Content
Want More? Download the Top 7 Stocks from Three Sectors Booklet
This free 16-page booklet includes:
- A 2025 stock market review for context, so you understand the environment these stocks are coming from and can build conviction instead of just chasing a name on a list.
- A simple, metrics-first approach you can reuse: you see how starting with growing sales, growing profit, and growing dividends helps you narrow the universe to companies that are already thriving, not just hyped.
Make 2026 your best investment year!
Last week, we spotlighted two resilient hunting grounds—Financial Services and Consumer Staples—and walked through six names worth deeper research.
Understand what the Dividend Triangle consists of in the article below:
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