Zacks.com featured highlights include TE Connectivity, Enersys, Donaldson, Lam Research and Leidos

For Immediate ReleaseChicago, IL – December 16, 2025 – Stocks in this week’s article are — like TE Connectivity TEL, Enersys ENS, Donaldson DCI, Lam Research LRCX and Leidos Holdings LDOS.Buy These 5 Dividend Growth Stocks Amid Heavy Tech SelloffsMajor U.S. stock indices tumbled on Dec. 12, 2025, dragged by significant sell-offs witnessed for technology stocks as investors remained worried about the narrative of an apparent AI bubble. Investors these days seem to be spooked by even the tiniest bit of negative news related to AI, as seen last Friday when a heavy tech sell-offs were witnessed after Broadcom indicated it expects some margin pressure in its AI business, in the first quarter of fiscal 2026, despite comfortably beating its fiscal fourth-quarter earnings estimates.Amid such an edgy environment, equity investors may prefer dividend-growth stocks over high price-growth stocks. This is because companies with a history of raising dividends often exhibit strong financial health, providing a defensive hedge against economic uncertainty.In fact, stocks with a strong history of year-over-year dividend growth form 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 five such dividend growth stocks — TE Connectivity, Enersys, Donaldson, Lam Research and Leidos Holdings— which could be solid choices for your portfolio.Why Is Dividend Growth Better?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 strong history of dividend growth suggests an increase ahead.Although these stocks do not necessarily have the highest yields, they have outperformed for a more extended period than the broader stock market or any other dividend-paying stock.As a result, selecting dividend-growth stocks appears to be a winning strategy when other key parameters are also taken into account.These few criteria alone narrowed the universe from more than 7,700 stocks to just nine.Here are five of the 11 stocks that fit the bill:Ireland-based TE Connect is a global technology company that designs and manufactures connectivity and sensor solutions for a wide range of industries, including automotive, aerospace, defense, energy and medical. It is a market leader in the connectivity and sensor business. The Zacks Consensus Estimate for TEL’s fiscal 2026 revenues suggests a year-over-year improvement of 10.2%. The stock boasts a long-term (three-to-five years) earnings growth rate of 12.3% and has an annual dividend yield of 1.23%.TEL currently carries a Zacks Rank #2 and has a Growth Score of B. You can see the complete list of today’s Zacks #1 Rank stocks here.Pennsylvania-based Enersys engages in the manufacturing, marketing and distribution of various industrial batteries. The Zacks Consensus Estimate for ENS’ fiscal 2026 revenues suggests a year-over-year improvement of 4%. The stock boasts a long-term earnings growth rate of 15% and has an annual dividend yield of 0.71%.ENS currently has a Zacks Rank #2 and a Growth Score of B.Minnesota-based Donaldson is engaged in the manufacturing and selling of filtration systems and replacement parts across the world. The consensus estimate for DCI’s fiscal 2026 revenues suggests a year-over-year improvement of 3.4%. The stock boasts a long-term earnings growth rate of 10% and has an annual dividend yield of 1.30%.DCI currently holds a Zacks Rank #2 and has a Growth Score of B.California-based Lam Research supplies wafer fabrication equipment and services to the semiconductor industry. The consensus estimate for LRCX’s fiscal 2026 revenues implies a year-over-year improvement of 14.1%. The stock boasts a long-term earnings growth rate of 20.3% and has an annual dividend yield of 0.65%.LRCX currently carries a Zacks Rank #2 and has a Growth Score of A.Virginia-based Leidos Holdings’ core capabilities include providing solutions in the fields of cybersecurity; data analytics; enterprise IT modernization; operations and logistics; sensors, collection and phenomenology; software development; and systems engineering. The Zacks Consensus Estimate for LDOS’ 2025 revenues suggests a year-over-year improvement of 3.4%. The stock boasts a long-term earnings growth rate of 11.6% and has an annual dividend yield of 0.84%.LDOS currently holds a Zacks Rank #2 and has a Growth Score of B.You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can create your own strategies and test them first before taking the investment plunge.The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.Click here to sign up for a free trial to the Research Wizard today.For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2804319/buy-these-5-dividend-growth-stocks-amid-heavy-tech-sell-offsZacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.Contact: Jim GiaquintoCompany: Zacks.comPhone: 312-265-9268Email: pr@zacks.comVisit: https://www.zacks.com/Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.Zacks Naming Top 10 Stocks for 2026Want to be tipped off early to our 10 top picks for the entirety of 2026? History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2026. Don’t miss your chance to get in on these stocks when they’re released on January 5. Be First to New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lam Research Corporation (LRCX): Free Stock Analysis Report TE Connectivity Ltd. (TEL): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report Enersys (ENS): Free Stock Analysis Report Leidos Holdings, Inc. (LDOS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks