10 Best Dividend Growth Stocks Insiders Are Buying for February 2026
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Market Overview & Selection Criteria
In the current market environment, value investors seek stocks trading below their intrinsic value, offering potential for long-term appreciation amid economic uncertainties. ValueSense applies a proprietary methodology focusing on intrinsic value calculations, quality ratings (on a 0-10 scale), free cash flow generation, ROIC, and margin profiles to identify undervalued opportunities. These 10 best stock picks were selected from high-quality companies with market caps over $75B, prioritizing those where intrinsic value significantly exceeds implied current pricing, strong FCF margins, and revenue growth potential. This watchlist emphasizes diversified sectors like consumer staples, financials, healthcare, REITs, and industrials for balanced exposure in a stock watchlist strategy.
Featured Stock Analysis
Stock #1: The Coca-Cola Company (KO)
| Metric | Value |
|---|---|
| Market Cap | $317.9B |
| Quality Rating | 6.7 |
| Intrinsic Value | $42.2 |
| 1Y Return | 16.8% |
| Revenue | $47.7B |
| Free Cash Flow | $5,570.0M |
| Revenue Growth | 2.8% |
| FCF margin | 11.7% |
| Gross margin | 61.6% |
| ROIC | 33.7% |
| Total Debt to Equity | 142.5% |
Investment Thesis
The Coca-Cola Company (KO) stands out with a robust Quality rating of 6.7 and an intrinsic value of $42.2, suggesting undervaluation in the consumer staples sector. With a massive Market Cap of $317.9B, KO generates steady Revenue of $47.7B and Free Cash Flow of $5,570.0M, supported by a healthy FCF margin of 11.7% and exceptional Gross margin of 61.6%. Its ROIC of 33.7% highlights efficient capital allocation, despite a 1Y Return of 16.8% and modest Revenue growth of 2.8%. Elevated Total Debt to Equity at 142.5% is offset by consistent cash flows, making KO a defensive pick for value-oriented portfolios seeking stability and dividend reliability.
This analysis reveals KO's strength in brand moat and profitability, positioning it as a core holding for investors analyzing KO stock fundamentals.
Key Catalysts
- High ROIC 33.7% drives superior returns on invested capital
- Strong Gross margin 61.6% supports pricing power in beverages
- Reliable Free Cash Flow $5,570.0M enables dividends and buybacks
- Steady Revenue growth 2.8% in a stable consumer staples sector
Risk Factors
- High Total Debt to Equity 142.5% increases balance sheet vulnerability
- Modest Revenue growth 2.8% limits aggressive expansion potential
- Commodity price fluctuations could pressure margins
Stock #2: S&P Global Inc. (SPGI)
| Metric | Value |
|---|---|
| Market Cap | $160.1B |
| Quality Rating | 6.2 |
| Intrinsic Value | $419.8 |
| 1Y Return | 1.6% |
| Revenue | $15.0B |
| Free Cash Flow | $5,461.0M |
| Revenue Growth | 9.0% |
| FCF margin | 36.4% |
| Gross margin | 70.0% |
| ROIC | 8.8% |
| Total Debt to Equity | 31.5% |
Investment Thesis
S&P Global Inc. (SPGI) earns a solid Quality rating of 6.2, with an elevated intrinsic value of $419.8 indicating significant upside potential in financial services. Boasting a Market Cap of $160.1B, SPGI delivers Revenue of $15.0B and impressive Free Cash Flow of $5,461.0M, reflected in a standout FCF margin of 36.4% and Gross margin of 70.0%. Revenue growth of 9.0% and ROIC of 8.8% underscore operational efficiency, even with a modest 1Y Return of 1.6%. Low Total Debt to Equity of 31.5% enhances financial flexibility for this data and analytics leader.
SPGI's metrics position it as a high-margin growth story in SPGI analysis, ideal for portfolios targeting information services.
Key Catalysts
- Exceptional FCF margin 36.4% fuels reinvestment and shareholder returns
- Strong Gross margin 70.0% from scalable data services
- Accelerating Revenue growth 9.0% amid market demand
- Manageable Total Debt to Equity 31.5% supports stability
Risk Factors
- Lower ROIC 8.8% compared to peers may signal capital efficiency gaps
- Cyclical exposure to financial markets could impact 1Y Return
- Competitive pressures in ratings and indices business
Stock #3: Pfizer Inc. (PFE)
| Metric | Value |
|---|---|
| Market Cap | $148.9B |
| Quality Rating | 6.0 |
| Intrinsic Value | $46.3 |
| 1Y Return | -1.7% |
| Revenue | $62.8B |
| Free Cash Flow | $10.4B |
| Revenue Growth | 4.4% |
| FCF margin | 16.5% |
| Gross margin | 69.4% |
| ROIC | 9.8% |
| Total Debt to Equity | 66.3% |
Investment Thesis
Pfizer Inc. (PFE) features a Quality rating of 6.0 and intrinsic value of $46.3, highlighting value in healthcare amid a Market Cap of $148.9B. The company reports Revenue of $62.8B and robust Free Cash Flow of $10.4B, with FCF margin at 16.5% and Gross margin of 69.4%. Revenue growth of 4.4% and ROIC of 9.8% provide a solid base, despite a 1Y Return of -1.7%. Total Debt to Equity of 66.3% is reasonable for the pharma sector, offering pipeline-driven recovery potential.
This PFE stock analysis emphasizes cash generation for R&D and dividends in biotech.
Key Catalysts
- Strong Free Cash Flow $10.4B supports drug development
- High Gross margin 69.4% from patented pharmaceuticals
- Positive Revenue growth 4.4% post-pandemic
- Competitive ROIC 9.8% in healthcare
Risk Factors
- Negative 1Y Return -1.7% reflects patent cliffs
- Total Debt to Equity 66.3% amid R&D spend
- Regulatory hurdles for new drugs
Stock #4: Interactive Brokers Group, Inc. (IBKR)
| Metric | Value |
|---|---|
| Market Cap | $129.7B |
| Quality Rating | 6.7 |
| Intrinsic Value | $34.1 |
| 1Y Return | 37.4% |
| Revenue | $10.3B |
| Free Cash Flow | $14.2B |
| Revenue Growth | 10.7% |
| FCF margin | 137.2% |
| Gross margin | 89.4% |
| ROIC | (9.8%) |
| Total Debt to Equity | 0.1% |
Investment Thesis
Interactive Brokers Group, Inc. (IBKR) scores a high Quality rating of 6.7, with intrinsic value at $34.1 for this fintech player at Market Cap $129.7B. Exceptional Free Cash Flow of $14.2B dwarfs Revenue of $10.3B, yielding a remarkable FCF margin of 137.2% and Gross margin of 89.4%. Revenue growth of 10.7% and near-zero Total Debt to Equity 0.1% shine, despite negative ROIC of 9.8% and strong 1Y Return of 37.4%.
IBKR's broker efficiency makes it a standout in IBKR analysis for low-debt growth.
Key Catalysts
- Outstanding FCF margin 137.2% from trading volumes
- Ultra-low Total Debt to Equity 0.1% bolsters resilience
- Robust Revenue growth 10.7% in brokerage
- High Gross margin 89.4%
Risk Factors
- Negative ROIC (9.8%) indicates capital challenges
- Market volatility impacts trading revenue
- Regulatory changes in fintech
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Stock #5: Welltower Inc. (WELL)
| Metric | Value |
|---|---|
| Market Cap | $125.5B |
| Quality Rating | 6.8 |
| Intrinsic Value | $163.7 |
| 1Y Return | 39.7% |
| Revenue | $9,809.7M |
| Free Cash Flow | $2,772.4M |
| Revenue Growth | 33.4% |
| FCF margin | 28.3% |
| Gross margin | 39.2% |
| ROIC | 17.9% |
| Total Debt to Equity | 46.5% |
Investment Thesis
Welltower Inc. (WELL), a healthcare REIT, boasts the top Quality rating of 6.8 and intrinsic value of $163.7 at Market Cap $125.5B. Explosive Revenue growth of 33.4% pairs with Revenue of $9,809.7M and Free Cash Flow of $2,772.4M (FCF margin 28.3%). ROIC of 17.9% and Gross margin of 39.2% support gains, with 1Y Return at 39.7% and Total Debt to Equity of 46.5%.
WELL excels in WELL analysis for senior housing demand.
Key Catalysts
- Stellar Revenue growth 33.4% from aging demographics
- Strong ROIC 17.9% in real estate
- Solid FCF margin 28.3%
- Impressive 1Y Return 39.7%
Risk Factors
- Total Debt to Equity 46.5% in rising rates
- Healthcare policy shifts
- Occupancy fluctuations
Stock #6: Starbucks Corporation (SBUX)
| Metric | Value |
|---|---|
| Market Cap | $104.2B |
| Quality Rating | 6.2 |
| Intrinsic Value | $47.5 |
| 1Y Return | -15.2% |
| Revenue | $37.7B |
| Free Cash Flow | $2,336.9M |
| Revenue Growth | 4.3% |
| FCF margin | 6.2% |
| Gross margin | 32.0% |
| ROIC | 8.8% |
| Total Debt to Equity | (399.9%) |
Investment Thesis
Starbucks Corporation (SBUX) holds a Quality rating of 6.2, intrinsic value $47.5 at Market Cap $104.2B. Revenue of $37.7B yields Free Cash Flow $2,336.9M (FCF margin 6.2%), with Revenue growth 4.3% and ROIC 8.8%. Negative 1Y Return -15.2% and Total Debt to Equity -399.9% reflect challenges, but Gross margin 32.0% offers recovery potential.
SBUX stock analysis focuses on global expansion.
Key Catalysts
- Steady Revenue growth 4.3% in coffee retail
- ROIC 8.8% for store efficiency
- Brand strength drives traffic
Risk Factors
- Weak FCF margin 6.2%
- Negative 1Y Return -15.2%
- Negative Total Debt to Equity -399.9% signals leverage issues
Stock #7: CME Group Inc. (CME)
| Metric | Value |
|---|---|
| Market Cap | $103.2B |
| Quality Rating | 6.5 |
| Intrinsic Value | $279.9 |
| 1Y Return | 24.9% |
| Revenue | $6,397.2M |
| Free Cash Flow | $4,083.9M |
| Revenue Growth | 5.8% |
| FCF margin | 63.8% |
| Gross margin | 86.1% |
| ROIC | 10.2% |
| Total Debt to Equity | 12.1% |
Investment Thesis
CME Group Inc. (CME) rates 6.5 in quality, with intrinsic value $279.9 at Market Cap $103.2B. Revenue $6,397.2M generates Free Cash Flow $4,083.9M (FCF margin 63.8%), Gross margin 86.1%, Revenue growth 5.8%, ROIC 10.2%, and low Total Debt to Equity 12.1%. 1Y Return 24.9% highlights derivatives strength.
Ideal for CME analysis in exchanges.
Key Catalysts
- Elite FCF margin 63.8%
- High Gross margin 86.1%
- Low Total Debt to Equity 12.1%
- Positive 1Y Return 24.9%
Risk Factors
- Trading volume sensitivity
- Regulatory oversight
- Competition in derivatives
Stock #8: NIKE, Inc. (NKE)
| Metric | Value |
|---|---|
| Market Cap | $91.0B |
| Quality Rating | 5.2 |
| Intrinsic Value | $45.7 |
| 1Y Return | -20.7% |
| Revenue | $46.5B |
| Free Cash Flow | $2,475.0M |
| Revenue Growth | (5.0%) |
| FCF margin | 5.3% |
| Gross margin | 41.0% |
| ROIC | 13.8% |
| Total Debt to Equity | 80.1% |
Investment Thesis
NIKE, Inc. (NKE) has a Quality rating of 5.2, intrinsic value $45.7 at Market Cap $91.0B. Revenue $46.5B with Free Cash Flow $2,475.0M (FCF margin 5.3%), Gross margin 41.0%, negative Revenue growth -5.0%, but solid ROIC 13.8%. 1Y Return -20.7% and Total Debt to Equity 80.1% note headwinds.
NKE stock analysis eyes brand rebound.
Key Catalysts
- Strong ROIC 13.8%
- Decent Gross margin 41.0%
- Global brand moat
Risk Factors
- Negative Revenue growth -5.0%
- Poor 1Y Return -20.7%
- Elevated Total Debt to Equity 80.1%
Stock #9: American Tower Corporation (AMT)
| Metric | Value |
|---|---|
| Market Cap | $82.7B |
| Quality Rating | 6.4 |
| Intrinsic Value | $144.9 |
| 1Y Return | -1.1% |
| Revenue | $10.5B |
| Free Cash Flow | $3,690.9M |
| Revenue Growth | (5.3%) |
| FCF margin | 35.3% |
| Gross margin | 74.6% |
| ROIC | 7.9% |
| Total Debt to Equity | 418.1% |
Investment Thesis
American Tower Corporation (AMT) scores 6.4 quality, intrinsic value $144.9 at Market Cap $82.7B. Revenue $10.5B, Free Cash Flow $3,690.9M (FCF margin 35.3%), Gross margin 74.6%, negative Revenue growth -5.3%, ROIC 7.9%, high Total Debt to Equity 418.1%, 1Y Return -1.1%.
Key for AMT analysis in infrastructure.
Key Catalysts
- High FCF margin 35.3%
- Strong Gross margin 74.6%
- 5G tower demand
Risk Factors
- High Total Debt to Equity 418.1%
- Negative Revenue growth -5.3%
- Interest rate sensitivity
Stock #10: Elevance Health Inc. (ELV)
| Metric | Value |
|---|---|
| Market Cap | $76.4B |
| Quality Rating | 5.7 |
| Intrinsic Value | $588.8 |
| 1Y Return | -13.1% |
| Revenue | $198.7B |
| Free Cash Flow | $3,174.0M |
| Revenue Growth | 12.4% |
| FCF margin | 1.6% |
| Gross margin | 56.2% |
| ROIC | 24.2% |
| Total Debt to Equity | 2.8% |
Investment Thesis
Elevance Health Inc. (ELV) rates 5.7 quality, standout intrinsic value $588.8 at Market Cap $76.4B. Massive Revenue $198.7B, Free Cash Flow $3,174.0M (FCF margin 1.6%), Gross margin 56.2%, Revenue growth 12.4%, top ROIC 24.2%, low Total Debt to Equity 2.8%, 1Y Return -13.1%.
ELV analysis spotlights healthcare services scale.
Key Catalysts
- Leading ROIC 24.2%
- Strong Revenue growth 12.4%
- Low Total Debt to Equity 2.8%
Risk Factors
- Low FCF margin 1.6%
- Negative 1Y Return -13.1%
- Healthcare reimbursement risks
Portfolio Diversification Insights
These 10 best stocks offer broad diversification: consumer staples (KO, SBUX), financials (SPGI, IBKR, CME), healthcare (PFE, WELL, ELV), consumer discretionary (NKE), REITs (AMT). Sector allocation balances defensives 40% with growth 30% and cyclicals 30%, reducing volatility. High-ROIC names like KO 33.7% complement low-debt plays like IBKR 0.1%, while healthcare exposure (PFE, WELL, ELV) hedges inflation. Cross-references show synergy, e.g., AMT's infrastructure supports IBKR's trading tech.
Market Timing & Entry Strategies
Consider entry on pullbacks to intrinsic value thresholds, such as KO near $42.2 or SPGI toward $419.8, using dollar-cost averaging for volatility. Monitor Q4 earnings for revenue growth catalysts like WELL's 33.4%. Scale in during sector rotations—defensives like KO in downturns, growth like IBKR on rate cuts. Pair with stop-losses at 10-15% below entry for risk management in this stock watchlist.
Explore More Investment Opportunities
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FAQ Section
How were these stocks selected?
These stocks were chosen using ValueSense's intrinsic value model, prioritizing high quality ratings (5.2-6.8), strong FCF margins, and undervaluation relative to metrics like ROIC and revenue growth for diversified best value stocks.
What's the best stock from this list?
Welltower (WELL) leads with the highest Quality rating 6.8, 39.7% 1Y Return, and 33.4% revenue growth, though selection depends on portfolio needs in top stocks to buy now.
Should I buy all these stocks or diversify?
Diversification across sectors like these reduces risk; allocate 5-10% per stock rather than concentrating, leveraging complementary profiles like KO's stability and IBKR's growth.
What are the biggest risks with these picks?
Key risks include high debt (AMT 418.1%, KO 142.5%), negative returns (NKE -20.7%), and low FCF margins (ELV 1.6%), alongside sector-specific issues like regulation and rates.
When is the best time to invest in these stocks?
Optimal timing aligns with dips to intrinsic values (e.g., PFE at $46.3) or positive catalysts like earnings beats, using phased entries for investment opportunities in volatile markets.