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Today’s topics:

1. Top 5 Dividend Growth Stocks Selling Off

2. $208K Dividend Portfolio Update

3. The Trump Tariff Effect On Markets

Let’s do this!

The Key Story

Top 5 Dividend Growth Stocks Selling Off After Earnings

Earnings season is in full swing, and as I’ve been tracking the markets, I’ve noticed that several top dividend growth stocks are currently on sale after reporting earnings.

I want to dive into my top five picks that are selling off:

1. Alphabet (GOOGL)
   Alphabet did great on earnings and revenue, yet it’s stock fell about 7.3% after hours. Google’s core advertising business remains strong, though investors are cautious about its rising capex as it invests heavily in AI ($75 billion guidance for 2025).

2. PepsiCo (PEP)
   PepsiCo sold off 4.5%. The business has 53 consecutive dividend increases, recently announcing a 5% raise. With a current dividend yield nearing 3.8%, it continues to offer reliable income and stability.

3. Archer Daniels Midland (ADM)
   ADM’s recent 5% dip has boosted its dividend yield to about 4.3%, and it just announced a modest 2% dividend increase. With a cheap valuation, it could be an appealing entry for long-term investors willing to weather some cyclicality.

4. Merck (MRK)
   Merck’s stock is down roughly 9%, pushing its dividend yield to 3.57%, despite a slight beat on EPS and revenue. Challenges in the Chinese market have weighed on sentiment, but its strong pipeline and future growth guidance suggest these issues could be temporary.

5. Mondelēz International (MDLZ)
   Mondelēz has dipped nearly 5% after earnings due to rising cocoa prices affecting its chocolate segment. Despite short-term cost pressures, its dividend yield is now about 3.3%, supported by a solid history of dividend growth.

These selloffs during earnings season might very well present the perfect opportunity to buy high-quality dividend growth stocks at a discount. Watch the full video for my analysis on each of these stocks.

As always, I encourage you to do your own research. If you’d like a high quality source, check out the tools available at DividendData.com.

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$208k Dividend Portfolio Update

Why I’m Still Buying Dividend Stocks

With a current portfolio value of $208k and over $125,000 invested, my total return is up an impressive 65.6%. In January, I earned my largest month of dividend income ever, pulling in $626 in dividends.

On DividendData.com, you can get live access to my portfolio and new buys. This is available under the “Zach’s Research“ section.

This past week, I bought 2 stocks:

1. I recently purchased two shares of Microsoft—one at $418 and another at $411. Microsoft has been relatively flat for the past year, but I’m confident in its long-term prospects. With its dominant market position, growing Cloud business, and AI revenue now at a $13 billion run rate (up 175% year-over-year), Microsoft remains a cornerstone of my dividend portfolio. It’s now the second largest holding in my portfolio, where it’s already delivered a 71% total return.

2. I also opened a new position in Texas Pacific Land Corporation (TPL), buying one share at $1,255. TPL may trade at a high valuation, but I see it as a high-quality business built to deliver long-term growth—especially in the energy sector. I plan to be patient with these investments and take advantage of future market dips to add more positions over time.

My strategy remains to accumulate high-quality dividend growth stocks, regardless of short-term market noise.

Stock Market News

Tariff Impact & Investing Wisdom

Now, about these tariffs: while media outlets and so-called experts are predicting widespread economic disruption, I’m staying focused on the big picture.

When markets get rattled by headlines, it helps to remember the words of legendary investors.

I took a trip back to 2018 when the first Trump trade war was in full swing. Warren Buffett famously reminded investors that if you own a good business, short-term price fluctuations don’t change its long-term value.

And then there’s Peter Lynch, who humorously noted that “there’s always something to worry about”. His advice? Focus on the fundamentals—earnings growth, cash flow, and dividend sustainability—and don’t let sensational headlines derail your long-term strategy. Watch his great clip featured in my video.

There’s always something to worry about…

Ultimately, whether it’s tariffs, trade wars, or any other market scare, the key is to buy and hold quality businesses. I’m not worried about today’s headlines because my focus remains on building a robust dividend portfolio that will compound in value over the years.

Also, it’s been less than a week and the Canada and Mexico tariffs have already been delayed 1 month and in active negotiation to potentially be avoided.

What’s the lesson? Don’t make rash investing decisions to news stories.

Thanks for the read! Let me know what you thought by replying back to this email.

— Zach

Disclaimer: Dividend Dividend (Dividend Data LLC) is not a professional financial service. All materials released from Dividend Data (Dividend Data LLC) are for educational and entertainment purposes. Dividend Data (Dividend Data LLC) is not a replacement for a professional's opinion. Contributors to the Dividend Data (Dividend Data LLC) might have equities mentioned in the newsletter