List of Mid-Cap Stocks with Lowest Dividend Growth Grades
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 06 2026
0mins
Source: seekingalpha
- Low Dividend Growth Ratings: Amid unpredictable market conditions, several mid-cap stocks have received an F grade for dividend growth, spanning sectors such as automotive retail, apparel retail, and coal, indicating a lack of commitment to shareholder returns.
- Key Companies Listed: The list includes Advance Auto Parts (AAP), American Eagle Outfitters (AEO), Peabody Energy (BTU), The Chemours Company (CC), and Dana (DAN), all of which exhibit poor dividend growth performance, potentially undermining investor confidence.
- Rating Standards Explained: Seeking Alpha's comprehensive dividend scoring system rates companies from A+ to F, with an F indicating a poor track record in increasing dividend payments, raising concerns about future performance among investors.
- Investment Risk Advisory: Companies rated D+ or below are considered a Sell, prompting investors to carefully assess the risks associated with these low-rated stocks, particularly in the context of economic volatility.
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Analyst Views on AAP
Wall Street analysts forecast AAP stock price to fall
12 Analyst Rating
1 Buy
10 Hold
1 Sell
Hold
Current: 52.660
Low
40.00
Averages
51.55
High
65.00
Current: 52.660
Low
40.00
Averages
51.55
High
65.00
About AAP
Advance Auto Parts, Inc. is an automotive aftermarket parts provider in North America, serving both professional installers (professional) and do-it-yourself (DIY) customers, as well as independently owned operators. The Company's stores and branches offer a range selection of brand names, original equipment manufacturer (OEM) and owned brand automotive replacement parts, accessories, batteries and maintenance items for domestic and imported cars, vans, sport utility vehicles and light and heavy-duty trucks. The Company operates approximately 4,788 stores primarily within the United States (U.S.), with additional locations in Canada, Puerto Rico and the U.S. Virgin Islands. The Company also serves approximately 934 independently owned Carquest branded stores across these locations in addition to Mexico and various Caribbean islands. Its stores operate primarily under the Advance Auto Parts and Carquest trade names.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Advance Auto Parts Reports Turnaround Progress, Stock Rises
- Turnaround Milestone: At the UBS Global Consumer and Retail Conference, Advance Auto Parts announced that after two and a half years of structural changes, it has achieved positive comparable sales and operating income for the first time, resulting in a 4.4% stock price increase to its highest close in three weeks, indicating significant turnaround progress.
- Supply Chain Optimization: The company has reduced its distribution centers from 50 to 16, enhancing supplier collaboration and adding 100,000 SKUs, while leveraging Palantir software and AI-driven analysis to optimize product assortments, which is expected to drive future business growth.
- Gross Margin Goals: CFO Ryan Grimsland stated that the gross profit margin is projected to reach approximately 45% this year, which will solidify the success of the company's three-year plan, having secured a meaningful share of profits through vendor negotiations and strategic sourcing.
- Market Risk Monitoring: Although tariffs and fuel prices remain critical variables for the industry, management believes these factors will not hinder internal progress, with O'Kelly emphasizing that the company has sufficient internal improvement opportunities to offset external pressures.
See More
H Partners Increases Stake in Advance Auto Parts
- Stake Increase: H Partners Management increased its stake in Advance Auto Parts by 375,000 shares in Q4 2026, with an estimated transaction value of $18.80 million, bringing the total position value to $35.37 million, making it the fund's third-largest holding and indicating confidence in the company's transformation.
- Performance Recovery: Advance Auto Parts shares rose 44.2% over the past year, outperforming the S&P 500 by 24 percentage points, reflecting a gradual recovery under new management and improving market confidence.
- Operational Improvement: The company reduced its debt burden by selling 700 underperforming stores and exiting the California market, with adjusted operating income margin improving from -2.5% in H2 2023 to 2.5% in 2025, and is projected to reach 4% in 2026.
- Market Competitiveness: With a price-to-sales ratio of only 0.37 times, compared to competitors O’Reilly Auto and AutoZone at 4.5 and 3.2 times respectively, Advance Auto Parts shows significant potential value, especially with new management and technological support paving the way for higher profitability.
See More
Beaconlight Capital Reduces Stake in Advance Auto Parts
- Share Reduction Details: Beaconlight Capital disclosed the sale of 124,431 shares of Advance Auto Parts in Q4 2025, valued at approximately $6.24 million, indicating a potential shift in confidence regarding the company's future.
- Ownership Percentage Shift: Following this sale, Beaconlight's stake in Advance Auto Parts decreased to 0.25% from 4.1%, reflecting a strategic rebalancing of its investment portfolio.
- Financial Performance Insights: Although Advance Auto Parts' net sales fell from $9.1 billion in 2024 to $8.6 billion, adjusted operating income surged to $216 million, up significantly from $35 million in the previous year, indicating early signs of successful restructuring efforts.
- Future Outlook: Management projects comparable sales growth of about 1% to 2% for 2026, alongside further margin expansion, suggesting that ongoing optimization of store footprint and supply chain is beginning to yield positive results.
See More
Beaconlight Capital Reduces Stake in Advance Auto Parts
- Stake Reduction: Beaconlight Capital sold 124,431 shares of Advance Auto Parts in the fiscal fourth quarter of 2025, representing an estimated $6.24 million trade, indicating a potential decrease in confidence in the company.
- Decline in Position Value: The fund's stake value decreased by $7.88 million by quarter-end, reflecting both stock price fluctuations and the sale, leaving a remaining position of 10,920 shares valued at $429,156.
- Company Performance Recovery: Although Advance Auto Parts' net sales fell from $9.1 billion in 2024 to $8.6 billion, adjusted operating income surged to $216 million, indicating early progress in its restructuring efforts.
- Future Outlook: Management anticipates comparable sales growth of about 1% to 2% in 2026 and further margin expansion, suggesting that Beaconlight's stake reduction appears more as portfolio rebalancing rather than a negative outlook on the company's prospects.
See More
Iran War Pressures Off-Price Retailers Amid Rising Oil Prices
- Oil Price Surge Impact: Since the onset of the U.S.-Iran conflict earlier this month, crude oil prices have surged to levels not seen since 2022, with WTI and Brent crude nearing $120 per barrel, leading to a 70 basis point decline in consumer spending among lower-income shoppers, exacerbating economic pressures.
- Retailer Pressure: According to Wolfe Research, off-price retailers like Dollar General and Walmart, which primarily serve low-income consumers, are expected to face greater pressure as rising oil prices may force these shoppers to tighten their budgets, impacting sales performance.
- Stock Price Declines: Dollar General's shares have fallen 5% over the past week, while Walmart and Advance Auto Parts have seen declines of nearly 3% and 7%, respectively, indicating a market sensitivity to rising energy prices and their impact on consumer confidence.
- Challenges from Import Dependence: Retailers reliant on Chinese imports, particularly in flooring and decor, may face significant headwinds as the Shanghai Containerized Index rises due to logistical issues in Southeast Asian ports, further complicating product shipments to the Middle East.
See More
Raymond James Upgrades Genuine Parts Company on Value Unlocking Potential
- Rating Upgrade: Raymond James has upgraded Genuine Parts Company from market perform to strong buy, reflecting the analyst's confidence in the company's potential for value unlocking, with a price target of $145 indicating about a 25% upside.
- Strategic Separation: GPC is undergoing a strategic transformation by separating its automotive (NAPA) and industrial (Motion Industries) segments, expected to be completed by Q1 2027, which will enhance operational independence and overall company value.
- Market Performance Analysis: Despite GPC shares declining approximately 20% since the fourth-quarter earnings report, the analyst believes the current risk-reward ratio is attractive, with the stock trading well below its implied fair value, indicating a compelling investment opportunity.
- Future Outlook: The analyst notes that while weak automotive demand may pressure near-term sentiment, the scheduled investor days for both segments in the second half of 2026 are expected to help improve valuations and further realize the company's value as the separation completion approaches.
See More
Advance Auto Parts Reports Turnaround Progress, Stock Rises
- Turnaround Milestone: At the UBS Global Consumer and Retail Conference, Advance Auto Parts announced that after two and a half years of structural changes, it has achieved positive comparable sales and operating income for the first time, resulting in a 4.4% stock price increase to its highest close in three weeks, indicating significant turnaround progress.
- Supply Chain Optimization: The company has reduced its distribution centers from 50 to 16, enhancing supplier collaboration and adding 100,000 SKUs, while leveraging Palantir software and AI-driven analysis to optimize product assortments, which is expected to drive future business growth.
- Gross Margin Goals: CFO Ryan Grimsland stated that the gross profit margin is projected to reach approximately 45% this year, which will solidify the success of the company's three-year plan, having secured a meaningful share of profits through vendor negotiations and strategic sourcing.
- Market Risk Monitoring: Although tariffs and fuel prices remain critical variables for the industry, management believes these factors will not hinder internal progress, with O'Kelly emphasizing that the company has sufficient internal improvement opportunities to offset external pressures.
See More
H Partners Increases Stake in Advance Auto Parts
- Stake Increase: H Partners Management increased its stake in Advance Auto Parts by 375,000 shares in Q4 2026, with an estimated transaction value of $18.80 million, bringing the total position value to $35.37 million, making it the fund's third-largest holding and indicating confidence in the company's transformation.
- Performance Recovery: Advance Auto Parts shares rose 44.2% over the past year, outperforming the S&P 500 by 24 percentage points, reflecting a gradual recovery under new management and improving market confidence.
- Operational Improvement: The company reduced its debt burden by selling 700 underperforming stores and exiting the California market, with adjusted operating income margin improving from -2.5% in H2 2023 to 2.5% in 2025, and is projected to reach 4% in 2026.
- Market Competitiveness: With a price-to-sales ratio of only 0.37 times, compared to competitors O’Reilly Auto and AutoZone at 4.5 and 3.2 times respectively, Advance Auto Parts shows significant potential value, especially with new management and technological support paving the way for higher profitability.
See More
Beaconlight Capital Reduces Stake in Advance Auto Parts
- Share Reduction Details: Beaconlight Capital disclosed the sale of 124,431 shares of Advance Auto Parts in Q4 2025, valued at approximately $6.24 million, indicating a potential shift in confidence regarding the company's future.
- Ownership Percentage Shift: Following this sale, Beaconlight's stake in Advance Auto Parts decreased to 0.25% from 4.1%, reflecting a strategic rebalancing of its investment portfolio.
- Financial Performance Insights: Although Advance Auto Parts' net sales fell from $9.1 billion in 2024 to $8.6 billion, adjusted operating income surged to $216 million, up significantly from $35 million in the previous year, indicating early signs of successful restructuring efforts.
- Future Outlook: Management projects comparable sales growth of about 1% to 2% for 2026, alongside further margin expansion, suggesting that ongoing optimization of store footprint and supply chain is beginning to yield positive results.
See More
Beaconlight Capital Reduces Stake in Advance Auto Parts
- Stake Reduction: Beaconlight Capital sold 124,431 shares of Advance Auto Parts in the fiscal fourth quarter of 2025, representing an estimated $6.24 million trade, indicating a potential decrease in confidence in the company.
- Decline in Position Value: The fund's stake value decreased by $7.88 million by quarter-end, reflecting both stock price fluctuations and the sale, leaving a remaining position of 10,920 shares valued at $429,156.
- Company Performance Recovery: Although Advance Auto Parts' net sales fell from $9.1 billion in 2024 to $8.6 billion, adjusted operating income surged to $216 million, indicating early progress in its restructuring efforts.
- Future Outlook: Management anticipates comparable sales growth of about 1% to 2% in 2026 and further margin expansion, suggesting that Beaconlight's stake reduction appears more as portfolio rebalancing rather than a negative outlook on the company's prospects.
See More
Iran War Pressures Off-Price Retailers Amid Rising Oil Prices
- Oil Price Surge Impact: Since the onset of the U.S.-Iran conflict earlier this month, crude oil prices have surged to levels not seen since 2022, with WTI and Brent crude nearing $120 per barrel, leading to a 70 basis point decline in consumer spending among lower-income shoppers, exacerbating economic pressures.
- Retailer Pressure: According to Wolfe Research, off-price retailers like Dollar General and Walmart, which primarily serve low-income consumers, are expected to face greater pressure as rising oil prices may force these shoppers to tighten their budgets, impacting sales performance.
- Stock Price Declines: Dollar General's shares have fallen 5% over the past week, while Walmart and Advance Auto Parts have seen declines of nearly 3% and 7%, respectively, indicating a market sensitivity to rising energy prices and their impact on consumer confidence.
- Challenges from Import Dependence: Retailers reliant on Chinese imports, particularly in flooring and decor, may face significant headwinds as the Shanghai Containerized Index rises due to logistical issues in Southeast Asian ports, further complicating product shipments to the Middle East.
See More
Raymond James Upgrades Genuine Parts Company on Value Unlocking Potential
- Rating Upgrade: Raymond James has upgraded Genuine Parts Company from market perform to strong buy, reflecting the analyst's confidence in the company's potential for value unlocking, with a price target of $145 indicating about a 25% upside.
- Strategic Separation: GPC is undergoing a strategic transformation by separating its automotive (NAPA) and industrial (Motion Industries) segments, expected to be completed by Q1 2027, which will enhance operational independence and overall company value.
- Market Performance Analysis: Despite GPC shares declining approximately 20% since the fourth-quarter earnings report, the analyst believes the current risk-reward ratio is attractive, with the stock trading well below its implied fair value, indicating a compelling investment opportunity.
- Future Outlook: The analyst notes that while weak automotive demand may pressure near-term sentiment, the scheduled investor days for both segments in the second half of 2026 are expected to help improve valuations and further realize the company's value as the separation completion approaches.
See More
