3 Quiet Outperformers Boosting Dividends as Markets Retreat

Key Points

• Elevated volatility has seen the S&P 500 lose around 5% from its highs, while the ongoing tech selloff has seen the sector fall around 10%.
• However, across food and retail, three inconspicuous names are providing significant gains to investors as risk-on assets continue to lag.
• These stocks are also substantially increasing their dividends, and two are engaging in considerable buyback spending, which comes as a vote of confidence for investors.

While the broader market and tech stocks in particular have hit a skid recently, three under-the-radar names are outperforming the major indices. All are seeing solid underlying improvements in their business, and investors are taking notice.

Meanwhile, these companies are giving income investors more to like by adding substantial juice to their dividends. That combination of share appreciation alongside healthy and increasing yields makes all three strong candidates for portfolios looking to hedge against the potential of more downside price action in the S&P 500 and NASDAQ. 

Smithfield Foods Announces Massive Dividend Boost, Yield Well Above 4%

Smithfield Foods NASDAQ: SFD is a large producer of meat products and livestock, with a strong emphasis on pork and hogs. The company went public in early 2025 and has performed impressively since, with shares up around 40% from their IPO price of $20. Including its considerable dividend yield, the stock’s total return since going public is near 50%, far exceeding the S&P 500’s approximately 11% return over the same period.

The stock went on a particularly strong run in late March into early April, rising around 20% over approximately two trading weeks. This came after the company announced its Q4 2025 earnings. Smithfield beat analyst expectations on sales and significantly surpassed estimates for adjusted earnings per share (EPS).

The company’s guidance points to another solid year ahead. While Smithfield expects sales growth to moderate, it forecasts continued margin expansion. A shift toward higher-margin, value-added products and operational improvements drives this forecast.

The company also announced a substantial 25% dividend increase. Its quarterly payment will move up to 31.25 cents, for a full-year payout of $1.25 per share. Smithfield expects to pay its next quarterly dividend on April 21 to shareholders of record on April 7. Overall, this gives the stock a strong indicated dividend yield of approximately 4.4%.

TJX Companies Issues 13% Dividend Increase as Store Expansion Continues

TJX Companies NYSE: TJX is a leading off-price retailer known for operating chains like TJ Maxx, Marshalls, and HomeGoods. This partially defensive stock has done very well over the past 52 weeks, delivering a total return near 30%. Additionally, while the S&P 500 is down by several percentage points in 2026, shares of TJX are up around 5%. 

Sales rose 7% year over year (YOY) in 2025, marking a significant acceleration versus the 4% growth TJX saw in 2024. Underscoring the company’s confidence going forward is its plan to open 146 new stores in 2026, or its fiscal year 2027.

The company also plans to return significant capital to shareholders. TJX has announced a solid 13% dividend increase, moving its quarterly payment to 48 cents per share. This pushes the stock’s indicated dividend yield to around 1.2%, just above the 1.1% yield offered by the S&P 500. The company plans to pay its next quarterly dividend on June 4 to shareholders of record on May 14.

Furthermore, TJX plans to spend between $2.5 billion and $2.75 billion on stock buybacks in 2026. At the midpoint, this would account for just under 1.5% of the stock’s approximately $180 billion market cap. While this program isn’t huge, it should add a meaningful tailwind to metrics like adjusted EPS.

Signet: Shares, Buybacks, and Dividends Are on the Rise

The world’s top diamond jewelry retailer, Signet Jewelers NYSE: SIG, operates well-known retail outlets, including Kay Jewelers, Zales, and Jared. This stock has also been a winner over the past 52 weeks, having gained around 40%. Shares received a nearly 14% boost after the company’s Q4 earnings report for its fiscal year 2026 (FY2026).

Sales of $2.35 billion were in line with expectations, and the company posted a solid beat on adjusted EPS, with that figure coming in at $6.25. Signet saw its free cash flow increase by a substantial 20% during the year, marking the firm’s highest free cash flow growth since 2021 and was vastly above the 4% growth seen in 2024.

The company also supported its stock in a big way during 2025, buying back 7% of its shares through $205 million of repurchases, good for an almost 50% YOY increase. Its remaining buyback capacity is $518 million, giving it the ability to continue spending substantially. In its latest earnings call, the company said it believes that “shares remain attractive,” a statement that was accentuated by a boost to the stock's yield.

Signet announced a more than 9% dividend increase, raising its quarterly payout to 35 cents per share. This moves the stock’s indicated yield to just under 1.7%. Despite seeing significant variance in its financial performance, Signet has continually raised its dividend over the past several years. Since the company’s fiscal year 2022, or roughly calendar year 2021, its dividend has grown by a compound annual rate of approximately 21%.

Analysts Eye Further Upside in SIG

Among this group of stocks, Wall Street analysts are expressing the most confidence in Signet going forward. The MarketBeat consensus price target of $112 implies more than 25% upside in shares. Price targets, which were updated after the company’s latest earnings report, are only slightly lower at around $107. However, it is worth noting that Signet has a lack of analyst coverage compared to many other stocks, making this gauge less robust.