Dividend Growth Investing: Why Zoetis Was Added to Client Portfolios

06/15/2026 | Three Streams Financial | Investment Management

By Dan Gould | Independent, Fee-Only Fiduciary

Why a Dividend Growth Income Strategy Matters More Than Ever

At Three Streams Financial, the strategy centers on building portfolios with rising income, inflation protection, and long-term wealth compounding. This approach becomes especially important in uncertain markets. Therefore, one standout company that fits this dividend income strategy is Zoetis (NYSE: ZTS).

How Zoetis Strengthens a Dividend Growth Income Strategy

Zoetis was recently added to client portfolios as a high-quality income generator with a 2.7% forward dividend yield, the highest yield in the company’s history after a sharp valuation reset. With inflation concerns driving investors toward income-producing assets, finding quality income at a reasonable valuation is difficult.

Zoetis has raised its dividend for 12 consecutive years, every year since becoming a public company in 2013. The dividend has compounded at roughly 19% annually over the past five years, one of the fastest growth rates among quality dividend payers. With a payout ratio near 34% of earnings, investors benefit from rapid, well-covered income growth with substantial room for future increases.

Chart Source: simplysafedividends.com

Why Durable Companies Are Essential to a Dividend Growth Income Strategy

In addition to its strong yield, Zoetis’ position as the world’s leading animal health company offers durability that’s hard to replicate. The company sells medicines, vaccines, and diagnostics for pets and livestock in over 100 countries, and pet owners don’t stop treating sick animals because of headlines. While some investors chase the next market trend, a disciplined dividend income strategy focuses on consistency, quality, and long-term reliability.

That’s why companies like Zoetis are ideal long-term holdings. For investors focused on income stability and lower volatility, ZTS represents the kind of core holding that aligns with our goal of building wealth with confidence over time.

How a Dividend Income Strategy Fits Retirement Portfolios

This strategic allocation supports long-term goals: income that grows, capital that compounds, and portfolios built to last. Envision a diversified portfolio of 35-40 dividend growth stocks with characteristics similar to ZTS, steadily growing your income at an optimistic 6-8% each year. You’ll be able to mitigate the effects of inflation and ensure that you never run out of money in retirement.

Chart source: www.marketbeat.com

Ready to Learn More About Inflation-Beating Dividend Strategies?

Three Streams Financial is an independent, fee-only investment advisor that helps working families and professionals retire with confidence. If you’re looking for tailored insights and a clear dividend income strategy, contact us.

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Remember, there’s no one-size-fits-all approach to investing. Conduct thorough research, consider your personal circumstances, and consult a fee-only financial advisor before making any investment decisions.