2 High Dividend Growth Stocks At Attractive Prices And Massive Upside
Short-term volatility equals long-term price appreciation
As you know by my name, I love dividends. And in addition to sharing on here, I write regularly on the investment platform- Seeking Alpha.
My goal there is to teach everyday investors about building wealth, so they won’t to need to work to traditional retirement age.
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Here at Dividend Collection Agency the goal is to give investors and/or readers a different perspective. We take a simple approach to building wealth. And although investing may seem easy, people often miss opportunities by over complicating it.
But we are here to help.
Over the past month, uncertainty has continued to build around the ongoing conflict with Iran.
At one point, President Donald Trump suggested that Iran was “desperately” seeking a deal. Shortly after, reports surfaced disputing those claims. Since then, markets have been stuck trying to interpret conflicting signals — and that uncertainty is starting to impact everything from oil prices to rate expectations.
The longer this conflict drags on, the more pressure it puts on:
Inflation
Consumer spending
Federal Reserve policy
Overall market stability
And if tensions escalate further — especially involving the Strait of Hormuz — we could see even higher energy prices and increased recession risk heading into 2027.
Why 2026 Could Bring Muted Returns 📈
Despite strong trailing performance from the S&P 500 (SP500), Dow Jones Industrial Average (DJI), and Nasdaq Composite (NDAQ), the market has started to show signs of weakness this year.
Here’s what’s driving that shift:
⛽ Rising oil and gas prices
🌎 Increased geopolitical risk
⏳ Delayed or uncertain rate cuts
🧠 Weakening investor sentiment
Higher energy costs ripple through the entire economy — raising input costs, squeezing margins, and impacting consumers directly.
Even personally, I’ve felt it — choosing to drive my Tesla more often instead of my Camaro.
That may seem small, but it reflects a broader trend:
👉 Consumers are adjusting behavior.
And when that happens at scale, economic growth slows.
Why I’m Leaning Into Dividend Growth 💸
If we do enter a recession, markets will likely see volatility and potential downside.
But not all strategies perform the same.
Historically:
Dividend stocks have shown less severe drawdowns
Income helps offset price declines
Dividend growth strategies tend to outperform over time
Early in my investing journey, I focused too heavily on yield:
REITs like Real Estate Select Sector SPDR Fund (XLRE)
BDCs like VanEck BDC Income ETF (BIZD)
The income was strong — but the lack of growth held my portfolio back.
Now?
👉 I focus on dividend growth + quality
What I’m Buying Right Now 🧾
During this recent volatility, I’ve been adding to two positions that I believe offer strong long-term upside.
#1 Visa Inc. — High-Quality Compounder 💳
Visa (V) continues to be one of the most consistent businesses in the market.
Even with recent underperformance, the long-term story remains intact.
What stands out:
💰 ~15% dividend CAGR (5-year)
🛡 Low payout ratio (~21%)
🏦 Strong balance sheet + liquidity
🔁 Ongoing share buybacks
Yes, a recession could slow transaction volumes.
But:
👉 Visa doesn’t need perfect conditions to grow.
Even in slower environments, I expect:
10–12% dividend growth
Continued earnings expansion over time
My outlook:
🎯 Price target: $445 by 2028
📈 Upside: ~48%
📊 Near-term: Likely rangebound
#2 Otis Worldwide Corporation — Undervalued Opportunity 🛗
Otis (OTIS) is one of the most overlooked dividend growth names right now.
Shares have pulled back significantly — but that’s exactly what makes it attractive.
Why I’m buying:
📉 Trading below historical valuation (~18x vs ~24x avg)
📊 Solid earnings growth despite headwinds
💸 ~16% dividend CAGR since 2020
🔁 Consistent share buybacks
Current challenges:
🇨🇳 China weakness
⚖ Tariff-related uncertainty
📉 New Equipment segment pressure
But I view these as temporary.
My outlook:
🎯 Price target: $132.51 by 2028
📈 Upside: ~71%
💰 Yield now above historical average (~2%+)
Risks to Watch ⚠️
No matter how strong a company is, macro still matters.
For Visa:
Lower consumer spending = fewer transactions
Potential short-term earnings pressure
For Otis:
Continued China weakness
Slower growth in key segments
Both could see volatility if we enter a recession.
My Strategy Going Forward 📝
I’ve raised some cash — but I’m not sitting out.
Instead, I’m:
✅ Buying high-quality dividend growers
✅ Using volatility to accumulate
✅ Focusing on long-term income growth
✅ Balancing income + growth
Because at the end of the day:
👉 Volatility is temporary.
👉 Income is consistent.
👉 Compounding is powerful.
Bottom Line ✅
Markets may continue to struggle in the near term.
Geopolitical risks, rising energy prices, and shifting rate expectations are creating a challenging environment.
But for long-term investors? This is where opportunities are created.
Visa and Otis may face short-term pressure — but their long-term fundamentals remain strong.
Which stock are you picking up during this investing opportunity? Let me know in the comments.
Happy Investing!
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Not financial advice. For educational purposes only. I am not a licensed professional. Do your own due diligence.
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