Payout Ratio: A Warning Signal

Plus, several undervalued stocks to buy with stable dividends.

In this special episode of The Morning Filter podcast, co-host Susan Dziubinski sits down with Morningstar columnist Dan Lefkovitz to take a deep dive into dividend stock investing today. They discuss what’s caused U.S. dividend stocks to lag this year while international dividend stocks have outperformed. Tune in to find out why the stock buyback boom is bad news for dividend seekers and what metrics investors should look at if they want to avoid dividend cuts.

They name drop a few undervalued stocks that Morningstar thinks have stable dividends, cover why dividend growth stock investing is underappreciated, and close with a discussion about whether dividend stocks are poised to outperform in 2026.

Episode Highlights 

00:01:16 Dividend Stock Performance: 2025 Recap

00:06:59 What the Buyback Boom Means for Dividend Investors

00:13:06 3 Ways to Spot a Dividend Cut Early

00:17:50 Dividend Growth Stocks: Why Bother?
 

Read about topics from this episode. 

Stock Buybacks Are Booming in 2025. That’s Bad News for Dividend Investors

The Surprising Truth About Dividend Growth Stocks

Not All Dividend Stocks Are Safe. Here’s How to Avoid Dividend Traps

Why International Dividend Stocks Have Pulled Ahead

Got a question for Dave? Send it to themorningfilter@morningstar.com.

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Viewers who’d like more information about any of the stocks Dave talked about today can visit Morningstar.com for more details. Read more from Susan Dziubinski and Dave Sekera.

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