For Immediate Release

Chicago, IL – April 9, 2025 – Stocks in this week’s article are Tapestry, Inc. TPR, Gildan Activewear Inc. GIL and Broadcom Inc. AVGO.

3 Reliable Dividend Growth Stocks to Escape Market Turmoil

Wall Street has been experiencing deep losses this year, given growing uncertainty around the new U.S. administration’s economic tariffs, which are expected to drive up consumer prices, thus curbing spending and weighing on the U.S. economy.

In such a scenario, investors have become defensive and shifted their focus to products that provide stability and safety in a rocky market. This has raised the appeal for dividend stocks, which offer income and stability. Though dividend stocks do not offer dramatic price appreciation, they are a major source of consistent income for investors to create wealth when returns from the equity market are at risk.

In fact, picking stocks with a history of dividend growth leads to a healthy portfolio with a greater scope of capital appreciation as opposed to simple dividend-paying stocks or those with high yields. We have selected three dividend growth stocks — Tapestry, Inc., Gildan Activewear Inc. and Broadcom Inc. — that could be compelling picks for investors amid the current market turmoil.

A Look at the Strategy

Stocks that have a strong history of dividend growth belong to mature companies, which are less susceptible to large swings in the market, and thus act as a hedge against economic or political uncertainty as well as stock market volatility. At the same time, these offer downside protection with their consistent increase in payouts.

Additionally, these stocks have superior fundamentals that make dividend growth a quality and promising investment for the long term. These include a sustainable business model, a long track of profitability, rising cash flows, good liquidity, a strong balance sheet and some value characteristics. Further, a history of strong dividend growth indicates that a dividend increase is likely in the future.

Although these stocks do not necessarily have the highest yields, they have outperformed for a longer period than the broader stock market or any other dividend-paying stock.

Here are three of the four stocks that fit the bill:

New York-based Tapestry, which was formerly known as Coach, is the designer and marketer of fine accessories and gifts for women and men in the United States and internationally. The stock has an estimated earnings growth rate of 14.4% for the fiscal year (ending June 2025). The company delivered an average earnings surprise of 11.9% in the last four quarters.

Tapestry has a Zacks Rank #1 and a Growth Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.

Montreal-based Gildan Activewear is a manufacturer and marketer of premium quality branded basic activewear for sale principally into the wholesale imprinted activewear segment of the North American apparel market. It has an estimated earnings growth rate of 16% for this year and delivered an average earnings surprise of 5.30% in the last four quarters.

Gildan Activewear has a Zacks Rank #2 and a Growth Score of B.

California-based Broadcom is a premier designer, developer and global supplier of a broad range of semiconductor devices focused on complex digital and mixed-signal complementary metal oxide semiconductor-based devices and analog III-V based products. The stock saw solid earnings estimate revision of 29 cents for the fiscal year (ending October 2025) over the past 30 days and has an expected earnings growth rate of 35.5%.

Broadcom has a Zacks Rank #2 and a Growth Score of A.

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Broadcom Inc. (AVGO) : Free Stock Analysis Report

Gildan Activewear, Inc. (GIL) : Free Stock Analysis Report

Tapestry, Inc. (TPR) : Free Stock Analysis Report

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