Here's My Top Dividend Stock for 2026 and Beyond

Key Points

• The major bank just raised its dividend again.

• Strong profitability and a fortress balance sheet give the bank ample room to keep raising payouts.

• At today's valuation, investors get a growing dividend plus steady buybacks from a best-in-class franchise.

• 10 stocks we like better than JPMorgan Chase ›

After a big run higher over the last few years, JPMorgan Chase (NYSE: JPM) doesn't look the high-yield story it used to be. But dividend investing isn't only about dividend yield. It is just as much about the staying power and the likelihood of consistent increases over the long haul. The nation's largest bank by assets has both.

JPMorgan is a diversified financial services leader spanning consumer banking, payments, investment banking, markets, commercial banking, and asset management. Its impressive earnings capacity, coupled with tight risk discipline, shows up in robust returns on equity, strong capital levels, and a steady cadence of buybacks and dividends. In other words, JPMorgan has the makeup of a great dividend stock to buy and hold for the long haul.

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An excellent operator

JPMorgan's second-quarter report captured the powerful fundamentals behind the bank's dividend. Net income was $15 billion, or $5.24 per share, on adjusted revenue of $45.7 billion. Return on equity for the quarter was 18%, with return on tangible common equity (ROTCE) at 21%. Management highlighted broad-based strength; its markets revenue climbed 15% year over year, investment-banking fees rose 7%, and assets under management increased 18%.

"We reported another quarter of strong results," chairman and CEO Jamie Dimon said, noting momentum across the firm's major businesses.

The company also continued returning capital to shareholders in meaningful sums. In the quarter, the firm paid $3.9 billion in common dividends (then $1.40 per share) and repurchased $7.1 billion of stock. Over the last 12 months, total net payout (including both dividends and share repurchases) was 71% of earnings. Meanwhile, the company's dividend payout ratio sits at just 28%.

Importantly, JPMorgan's book value per share rose to $122.51 and tangible book value per share to $103.40, up 10% and 11%, respectively.

On the safety side, the bank's common equity tier 1 (CET1) ratio stood at a sturdy 15%. This ratio measures how much core capital a bank has compared with its risk-weighted assets, and regulators use it as a key gauge of financial strength. The figure is well above minimum requirements, showing JPMorgan has more than enough cushion to absorb potential losses. Supporting this, the firm also holds about $1.5 trillion in cash and marketable securities, giving it both resilience in a downturn and flexibility to keep funding growth and shareholder returns.

A strong dividend with growth potential

The dividend itself just stepped higher. After lifting the quarterly payout to $1.40 in March, the board has now approved another raise to $1.50 per share, payable on Oct. 31. That takes the annualized dividend to $6.00 per share. At today's share price, the dividend yield is roughly 1.8% -- not high, but backed by exceptional earnings power.

Income investors should focus on durability and runway. JPMorgan's profitability remains strong across cycles, supported by scale in consumer banking, leading positions in markets and advisory, and a fast-growing wealth and asset-management franchise. The firm continues to put capital to work where it earns attractive returns; as Dimon reminded investors on the latest call, the long-term value comes not just from earning a high ROTCE, but from reinvesting at attractive rates across the platform.

Management also has significant levers to keep returning cash. Following this summer's stress-test results, the board authorized a new $50 billion common share repurchase program. With book value compounding and capital ratios well above regulatory minimums, the firm can fund growth and continue sizable buybacks while raising the dividend at a steady clip.

JPMorgan stock's valuation is reasonable for a franchise of this quality. Using second-quarter figures, price-to-book is about 2.5, and price-to-tangible book is about 3.0. Those aren't bargain levels, but they align with a bank that routinely posts high-teens returns on equity, grows book value per share at meaningful rates, and returns a large share of earnings to shareholders. These dynamics -- steady earnings, a healthy balance sheet, and a disciplined approach to returning capital to shareholders -- support continued dividend growth alongside ongoing reinvestment.

Of course, a sharp downturn could pressure credit costs and capital markets activity, and a rapid shift in interest rates could weigh on net interest income. Additionally, regulation can tighten at inconvenient times. But JPMorgan's balance sheet strength and diversified earnings base reduce the odds that any single headwind derails the dividend trajectory.

Overall, JPMorgan offers exactly what dividend investors should want for 2026 and beyond: a growing payout supported by robust profitability, conservative payout ratios, and disciplined buybacks.

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JPMorgan Chase is an advertising partner of Motley Fool Money. Daniel Sparks and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool has a disclosure policy.