When the Federal Reserve is weighing a more hawkish stance and inflation sits above 4%, stable dividend growth can look appealing, but not all dividend stocks react the same way to rate and inflation headlines. The latest Fed meeting and US Iran peace developments around the Strait of Hormuz may shift expectations for energy prices, inflation, and future policy guidance, which can help or hurt different dividend payers. This article walks through three dividend growth stocks from our screener that are closely exposed to these catalysts, highlighting where the current setup may offer opportunity or call for extra caution.

Jack Henry & Associates (JKHY)

Overview: Jack Henry & Associates is a financial technology company that supplies banks and credit unions with core processing systems, digital banking platforms, and payment processing services, helping them run everyday transactions and offer online and mobile services to customers.

Operations: Jack Henry generates about US$0.8b from Core platforms, US$0.9b from Payments, US$0.7b from Complementary solutions, and around US$0.1b from Corporate Services, with all reported revenue of roughly US$2.5b coming from the United States.

Market Cap: US$9.1b

Jack Henry sits squarely in the dividend growth camp, with a software and payments model that tends to produce steady cash flow for banks and credit unions even when Fed policy turns more hawkish and inflation is elevated. Its focus on cloud based core systems, digital banking and fraud prevention, along with recent wins at larger institutions and partnerships around real time payments, helps support recurring revenue and a high Return on Equity, while buybacks add another lever for shareholder returns. At the same time, heavy exposure to US regional financial institutions, rising competition from fintechs, and higher funding risk from external debt mean this is not a set and forget stock. This is one reason many investors are watching what comes next for Jack Henry in a higher for longer rate backdrop and a slowly easing inflation trend tied to energy and tariff developments.

Jack Henry’s recurring software and payments engine can appear to be a quiet compounding story. However, the key question is how that translates into future shareholder returns in a higher rate world. Get the full context in the analysis report for Jack Henry & Associates

Radian Group (RDN)

Overview: Radian Group is a US mortgage insurer that helps lenders manage the risk of low down payment home loans by providing private mortgage insurance, specialty insurance, and reinsurance on residential first lien mortgages, serving a wide range of mortgage banks, commercial banks, credit unions, and community lenders.

Operations: Radian generates about US$1.21b from Mortgage Insurance and a segment adjustment of roughly US$0.17b, with all reported revenue of around US$1.37b coming from the United States.

Market Cap: US$4.6b

Radian sits at the crossroads of housing, interest rates, and income investing, which is an area many dividend growth investors are watching as the Fed weighs a more hawkish stance and inflation stays above 4%. Mortgage insurance in force, a 2.95% dividend, and active buybacks indicate a company focused on shareholder returns. Low P/E multiples and a DCF estimate well above the current price have drawn attention from value focused investors. At the same time, earnings have shown some recent pressure, the business leans heavily on mortgage insurance, and all funding comes from external sources, which adds sensitivity to credit cycles and Fed policy. A key question for investors is how that mix of housing demand, capital returns, and risk exposure might behave if rates stay higher for longer and energy driven inflation starts to ease.

Capital returns at Radian, with mortgage insurance in force and buybacks on the table, can look like an income story hiding in plain sight. Get the full analysis report for Radian Group for the twist that may matter most.

Texas Roadhouse (TXRH)

Overview: Texas Roadhouse operates casual dining restaurants in the US and abroad, serving steaks, ribs, burgers, salads, sandwiches and other comfort dishes under the Texas Roadhouse, Bubba’s 33 and Jaggers brands through a mix of company owned and franchised locations.

Operations: Texas Roadhouse generates about US$5.65b from its core Texas Roadhouse restaurants, US$347.9m from Bubba’s 33, US$37.0m from Other, and US$30.0m from unallocated franchise royalties and fees, with roughly US$6.06b of reported revenue coming from the United States.

Market Cap: US$11.0b

Texas Roadhouse gives dividend growth investors exposure to a consumer business that has handled inflation and Fed driven rate uncertainty with a focus on traffic, menu pricing and tight cost control, especially around beef. Same store sales were up 7.1% in Q1 2026, supported by a 4.5% traffic lift, while revenue reached US$1,633.17m and the quarterly dividend of US$0.75 per share points to a clear income focus. At the same time, beef inflation, wage pressure and an unstable dividend history, plus recent insider selling, remind you that margins and payouts are not on autopilot. The real question is how this mix of brand strength, unit growth and cost pressure could shape returns if inflation and energy costs start to cool only gradually after the Fed’s latest meeting and Iran peace developments.

Texas Roadhouse’s traffic and dividend story may look straightforward, but the real tension sits between growth, beef costs and margins, which is exactly what the analyst forecasts for Texas Roadhouse reveals before you reach the key plot twist.

The three dividend growth stocks here are only a starting point, as the full Dividend Growth Stocks screener surfaces 10 more U.S. companies with growing dividends and equally compelling income stories tied to the same catalysts. Use Simply Wall St to identify, compare, and analyze those dividend growers by filtering for the specific factors that matter to you, from payout ratios and balance sheet strength to sector exposures and policy sensitive narratives, so you can focus on the highest conviction ideas.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.