10 Best Dividend Growth Stocks At 52w Low for February 2026
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Market Overview & Selection Criteria
In the current market environment, many quality companies in the financial technology, software, and services sectors are trading at 52-week lows despite strong fundamentals, presenting potential value opportunities for long-term investors. Value Sense's analysis highlights stocks with high intrinsic value estimates compared to recent performance, focusing on metrics like Quality rating, ROIC, FCF margin, and low Total Debt to Equity where applicable. These 10 best stock picks were selected using Value Sense's automated fundamental screening for dividend-growth stocks at 52-week lows, prioritizing those with robust revenue growth, high gross margins, and significant undervaluation based on intrinsic value calculations. This methodology emphasizes companies generating strong free cash flow and efficient capital allocation, ideal for a diversified stock watchlist.
Featured Stock Analysis
Stock #1: Intuit Inc. (INTU)
| Metric | Value |
|---|---|
| Market Cap | $139.7B |
| Quality Rating | 7.1 |
| Intrinsic Value | $511.0 |
| 1Y Return | -17.5% |
| Revenue | $19.4B |
| Free Cash Flow | $6,353.0M |
| Revenue Growth | 17.1% |
| FCF margin | 32.7% |
| Gross margin | 80.8% |
| ROIC | 18.9% |
| Total Debt to Equity | 35.1% |
Investment Thesis
Intuit Inc. (INTU) stands out with a Quality rating of 7.1 and an intrinsic value of $511.0, suggesting substantial undervaluation amid a -17.5% 1Y return. The company boasts a massive $139.7B market cap, $19.4B in revenue growing at 17.1%, and impressive $6,353.0M free cash flow with a 32.7% FCF margin. High gross margins at 80.8% and ROIC of 18.9% underscore operational efficiency, while Total Debt to Equity at 35.1% remains manageable. This positions INTU as a leader in financial software, with strong cash generation supporting sustained growth in a volatile market.
Key financials reveal a resilient business model capable of weathering short-term pressures, making it a compelling pick for value analysis in the INTU stock analysis context.
Key Catalysts
- Robust revenue growth of 17.1% driving scalable expansion in fintech services
- Exceptional FCF margin 32.7% and gross margin 80.8% enabling reinvestment and dividends
- High ROIC 18.9% indicating efficient capital use for long-term value creation
Risk Factors
- Negative 1Y return -17.5% reflecting market headwinds in tech sector
- Moderate Total Debt to Equity 35.1% requiring monitoring amid interest rate shifts
Stock #2: Automatic Data Processing, Inc. (ADP)
| Metric | Value |
|---|---|
| Market Cap | $98.8B |
| Quality Rating | 6.7 |
| Intrinsic Value | $117.9 |
| 1Y Return | -18.6% |
| Revenue | $21.2B |
| Free Cash Flow | $4,596.5M |
| Revenue Growth | 6.6% |
| FCF margin | 21.7% |
| Gross margin | 48.4% |
| ROIC | 29.5% |
| Total Debt to Equity | 72.4% |
Investment Thesis
Automatic Data Processing, Inc. (ADP) features a solid Quality rating of 6.7 and intrinsic value of $117.9 against a -18.6% 1Y return, with a $98.8B market cap. Revenue stands at $21.2B with 6.6% growth, supported by $4,596.5M free cash flow and a 21.7% FCF margin. Gross margins at 48.4% and standout ROIC of 29.5% highlight superior returns, though Total Debt to Equity at 72.4% warrants attention. ADP's payroll and HR solutions provide steady recurring revenue, positioning it well for recovery in enterprise services.
This analysis frames ADP as a defensive play with strong profitability metrics for ADP stock analysis.
Key Catalysts
- Leading ROIC 29.5% demonstrating exceptional capital efficiency
- Reliable free cash flow $4,596.5M funding dividends and buybacks
- Steady revenue growth 6.6% from essential business services
Risk Factors
- Elevated Total Debt to Equity 72.4% in a high-rate environment
- 1Y underperformance -18.6% tied to economic slowdowns
Stock #3: Thomson Reuters Corporation (TRI)
| Metric | Value |
|---|---|
| Market Cap | $49.7B |
| Quality Rating | 6.2 |
| Intrinsic Value | $116.8 |
| 1Y Return | -34.3% |
| Revenue | $7,379.9M |
| Free Cash Flow | $1,831.3M |
| Revenue Growth | 2.4% |
| FCF margin | 24.8% |
| Gross margin | 39.7% |
| ROIC | 13.4% |
| Total Debt to Equity | 18.5% |
Investment Thesis
Thomson Reuters Corporation (TRI) shows a Quality rating of 6.2 and intrinsic value of $116.8, despite a sharp -34.3% 1Y return, with a $49.7B market cap. Revenue is $7,379.9M growing 2.4%, with $1,831.3M free cash flow at 24.8% margin. Gross margins at 39.7% and ROIC of 13.4% support stability, aided by low Total Debt to Equity of 18.5%. As a data and analytics provider, TRI benefits from indispensable professional services.
Value Sense data suggests TRI's metrics offer a margin of safety for TRI stock analysis.
Key Catalysts
- Healthy FCF margin 24.8% for consistent cash returns
- Low Total Debt to Equity 18.5% enhancing financial flexibility
- Core ROIC 13.4% from recurring information services
Risk Factors
- Modest revenue growth 2.4% limiting upside velocity
- Significant 1Y decline -34.3% from sector rotations
Stock #4: Paychex, Inc. (PAYX)
| Metric | Value |
|---|---|
| Market Cap | $36.5B |
| Quality Rating | 6.7 |
| Intrinsic Value | $55.3 |
| 1Y Return | -29.9% |
| Revenue | $6,033.9M |
| Free Cash Flow | $2,057.5M |
| Revenue Growth | 12.4% |
| FCF margin | 34.1% |
| Gross margin | 73.4% |
| ROIC | 19.6% |
| Total Debt to Equity | 2.2% |
Investment Thesis
Paychex, Inc. (PAYX) earns a Quality rating of 6.7 with intrinsic value at $55.3 versus -29.9% 1Y return, market cap $36.5B. Revenue of $6,033.9M grows 12.4%, generating $2,057.5M free cash flow at 34.1% margin. Strong gross margins 73.4% and ROIC 19.6% shine, with minimal Total Debt to Equity 2.2%. PAYX's HR and payroll focus delivers reliable income streams.
This profile supports PAYX as a low-risk value contender in PAYX analysis.
Key Catalysts
- Top-tier FCF margin 34.1% and gross margin 73.4%
- Impressive revenue growth 12.4% in SMB services
- Near-zero Total Debt to Equity 2.2% for balance sheet strength
Risk Factors
- Steep 1Y drop -29.9% amid payroll demand fluctuations
- Competition in fragmented HR space
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Stock #5: Wipro Limited (WIT)
| Metric | Value |
|---|---|
| Market Cap | $26.3B |
| Quality Rating | 6.1 |
| Intrinsic Value | $2.8 |
| 1Y Return | -31.5% |
| Revenue | â¹910.9B |
| Free Cash Flow | â¹99.5B |
| Revenue Growth | 2.6% |
| FCF margin | 10.9% |
| Gross margin | 29.6% |
| ROIC | 16.2% |
| Total Debt to Equity | 22.0% |
Investment Thesis
Wipro Limited (WIT) has a Quality rating of 6.1 and intrinsic value of $2.8, following -31.5% 1Y return, with $26.3B market cap. Revenue ₹910.9B grows 2.6%, with ₹99.5B free cash flow at 10.9% margin. Gross margins at 29.6% and ROIC 16.2% reflect IT services resilience, Total Debt to Equity 22.0%. WIT offers global exposure at a discount.
Ideal for international diversification in WIT stock analysis.
Key Catalysts
- Solid ROIC 16.2% in outsourcing demand
- Manageable Total Debt to Equity 22.0%
- Currency-hedged growth potential
Risk Factors
- Low FCF margin 10.9% and slow revenue growth 2.6%
- Extreme 1Y loss -31.5% from IT spending cuts
Stock #6: Broadridge Financial Solutions, Inc. (BR)
| Metric | Value |
|---|---|
| Market Cap | $22.9B |
| Quality Rating | 7.0 |
| Intrinsic Value | $177.9 |
| 1Y Return | -17.6% |
| Revenue | $7,055.7M |
| Free Cash Flow | $1,267.2M |
| Revenue Growth | 8.6% |
| FCF margin | 18.0% |
| Gross margin | 31.3% |
| ROIC | 17.6% |
| Total Debt to Equity | 124.5% |
Investment Thesis
Broadridge Financial Solutions, Inc. (BR) scores Quality rating 7.0 with intrinsic value $177.9 against -17.6% 1Y return, $22.9B market cap. Revenue $7,055.7M up 8.6%, $1,267.2M FCF at 18.0% margin. Gross margins 31.3%, ROIC 17.6%, but high Total Debt to Equity 124.5%. BR's investor communications platform ensures sticky revenue.
Strong for fintech stability in BR analysis.
Key Catalysts
- Vertical ROIC 17.6% and revenue growth 8.6%
- High Quality rating 7.0 signaling durability
Risk Factors
- Elevated Total Debt to Equity 124.5%
- Mild 1Y decline -17.6%
Stock #7: Bentley Systems, Incorporated (BSY)
| Metric | Value |
|---|---|
| Market Cap | $11.1B |
| Quality Rating | 6.5 |
| Intrinsic Value | $31.2 |
| 1Y Return | -23.5% |
| Revenue | $1,460.0M |
| Free Cash Flow | $460.1M |
| Revenue Growth | 11.1% |
| FCF margin | 31.5% |
| Gross margin | 81.2% |
| ROIC | 11.2% |
| Total Debt to Equity | 107.4% |
Investment Thesis
Bentley Systems, Incorporated (BSY) holds Quality rating 6.5, intrinsic value $31.2, -23.5% 1Y return, $11.1B market cap. Revenue $1,460.0M grows 11.1%, $460.1M FCF at 31.5% margin. Elite gross margins 81.2%, ROIC 11.2%, Total Debt to Equity 107.4%. Infrastructure software drives growth.
Niche leader for BSY stock analysis.
Key Catalysts
- Outstanding gross margin 81.2% and FCF margin 31.5%
- Accelerating revenue growth 11.1%
Risk Factors
- High Total Debt to Equity 107.4%
- 1Y underperformance -23.5%
Stock #8: Badger Meter, Inc. (BMI)
| Metric | Value |
|---|---|
| Market Cap | $4,267.7M |
| Quality Rating | 7.2 |
| Intrinsic Value | $139.3 |
| 1Y Return | -29.6% |
| Revenue | $916.7M |
| Free Cash Flow | $173.6M |
| Revenue Growth | 10.9% |
| FCF margin | 18.9% |
| Gross margin | 41.7% |
| ROIC | 21.6% |
| Total Debt to Equity | 0.0% |
Investment Thesis
Badger Meter, Inc. (BMI) tops with Quality rating 7.2, intrinsic value $139.3, -29.6% 1Y return, $4,267.7M market cap. Revenue $916.7M up 10.9%, $173.6M FCF at 18.9% margin. Gross margins 41.7%, ROIC 21.6%, debt-free at 0.0% Total Debt to Equity. Water tech focus yields pristine finances.
Premium quality for BMI analysis.
Key Catalysts
- Highest Quality rating 7.2 and ROIC 21.6%
- Zero-debt balance sheet 0.0%
- Consistent revenue growth 10.9%
Risk Factors
- Sharp 1Y drop -29.6%
- Smaller market cap exposure
Stock #9: Centrais Elétricas Brasileiras S.A. - Eletrobrás (EBR)
| Metric | Value |
|---|---|
| Market Cap | $2,382.1M |
| Quality Rating | 5.7 |
| Intrinsic Value | $13.9 |
| 1Y Return | -81.5% |
| Revenue | R$42.6B |
| Free Cash Flow | R$14.1B |
| Revenue Growth | 12.0% |
| FCF margin | 33.2% |
| Gross margin | 45.9% |
| ROIC | 4.6% |
| Total Debt to Equity | 68.9% |
Investment Thesis
Centrais Elétricas Brasileiras S.A. - Eletrobrás (EBR) has Quality rating 5.7, intrinsic value $13.9, drastic -81.5% 1Y return, $2,382.1M market cap. Revenue R$42.6B grows 12.0%, R$14.1B FCF at 33.2% margin. Gross margins 45.9%, ROIC 4.6%, Total Debt to Equity 68.9%. Brazilian utility offers high FCF yield.
Emerging market value in EBR stock analysis.
Key Catalysts
- Strong FCF margin 33.2% and revenue growth 12.0%
- Utility stability
Risk Factors
- Lowest ROIC 4.6% and extreme 1Y loss -81.5%
- Currency/geopolitical risks
Stock #10: The Wendy's Company (WEN)
| Metric | Value |
|---|---|
| Market Cap | $1,465.5M |
| Quality Rating | 6.3 |
| Intrinsic Value | $26.2 |
| 1Y Return | -46.8% |
| Revenue | $2,208.2M |
| Free Cash Flow | $237.8M |
| Revenue Growth | (0.2%) |
| FCF margin | 10.8% |
| Gross margin | 35.6% |
| ROIC | 8.5% |
| Total Debt to Equity | 3,771.5% |
Investment Thesis
The Wendy's Company (WEN) rates 6.3 Quality, intrinsic value $26.2, -46.8% 1Y return, $1,465.5M market cap. Revenue $2,208.2M with 0.2% growth, $237.8M FCF at 10.8% margin. Gross margins 35.6%, ROIC 8.5%, but high Total Debt to Equity 3,771.5%. Fast-food franchising provides cash flow.
Turnaround potential for WEN analysis.
Key Catalysts
- Franchise model supporting FCF generation
- Brand recognition
Risk Factors
- Negative revenue growth (0.2%)
- Extreme Total Debt to Equity 3,771.5% and 1Y plunge -46.8%
Portfolio Diversification Insights
These 10 stock picks cluster in financial tech (INTU, ADP, PAYX, BR), data/software (TRI, BSY), IT/services (WIT), industrials (BMI), utilities (EBR), and consumer (WEN), offering sector balance across US, India, and Brazil. Larger caps like INTU and ADP provide stability, while smaller BMI and WEN add growth/turnaround exposure. High Quality ratings (avg. ~6.5) and frequent high ROIC/FCF margins complement low-debt names (PAYX, BMI), reducing correlation risks. Allocating 10-20% per stock creates a diversified stock watchlist emphasizing undervaluation and dividend growth.
Market Timing & Entry Strategies
Consider entry during sustained 52-week low trading, targeting pullbacks where prices approach intrinsic value floors (e.g., INTU near $511, BMI near $139). Use dollar-cost averaging over 3-6 months to mitigate volatility, focusing on improving revenue growth signals or macro relief in rates. Monitor ROIC stability and FCF for confirmation, pairing with Value Sense screeners for dynamic adjustments in investment opportunities.
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FAQ Section
How were these stocks selected?
These 10 best stock picks were curated via Value Sense's screening for dividend-growth stocks at 52-week lows, emphasizing high Quality ratings, strong ROIC, FCF margins, and undervaluation per intrinsic value metrics.
What's the best stock from this list?
Badger Meter (BMI) leads with the highest Quality rating 7.2, debt-free status, and 21.6% ROIC, though selection depends on individual risk tolerance and portfolio needs.
Should I buy all these stocks or diversify?
Diversification across sectors like fintech (ADP, PAYX) and industrials (BMI) is key; allocate based on market cap and debt levels rather than holding all for balanced investment ideas.
What are the biggest risks with these picks?
Common risks include negative 1Y returns (avg. -30%), high debt in BR/BSY/WEN, and slow growth in TRI/WIT, amplified by market volatility and sector-specific pressures.
When is the best time to invest in these stocks?
Optimal timing aligns with prices nearing intrinsic values during lows, confirmed by FCF stability—use Value Sense tools for real-time stock picks monitoring.