26 Top Dividend Stocks to Buy and Hold in 2026

Source The Motley Fool

Key Points

  • Top dividend stocks for 2026 include many that offer ultra-high yields of over 6%.

  • The list features some stocks with low dividend yields but great growth prospects.

  • Several of these dividend stocks are also attractively valued.

  • 10 stocks we like better than Alphabet ›

I have a New Year's tradition. It doesn't involve fireworks or eating certain foods. Instead, in the first week of January, I identify my top dividend stocks to buy and hold for the new year.

Many of the stocks on this year's list are repeats from 2025, but there are also a few new entrants. Without further ado, here are my 26 top dividend stocks to buy and hold in 2026.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

A chalkboard with "Dividends" in the center surrounded by chalk drawings.

Image source: Getty Images.

Dividend royalty

Let's start with the Dividend Kings, an elite group of stocks that have increased their dividends for at least 50 consecutive years. I like three members of the dividend royalty for 2026:

Stock

Business Summary

Market Cap

Forward Dividend Yield

1. AbbVie (NYSE: ABBV)

Pharmaceutical company with multiple blockbuster drugs

$405 billion

3%

2. The Coca-Cola Company (NYSE: KO)

Multinational beverage maker with 30 billion-dollar brands

$301 billion

2.9%

3. Walmart (NASDAQ: WMT)

Large retailer with stores in the U.S. and other countries

$888 billion

0.8%

Data source: Yahoo! Finance. Market cap and forward dividend yield as of Dec. 31, 2025.

I especially like AbbVie's story. The major drugmaker faced a significant patent cliff with its longtime best-selling drug, Humira, losing U.S. patent exclusivity in early 2023. However, AbbVie has roared back. I view it as one of the best healthcare stocks on the market for income investors.

Stocks that Uncle Sam incentivizes to pay dividends

The U.S. government exempts certain types of companies from federal income taxes if they return at least 90% of their earnings to shareholders as dividends. Two stocks that fit the bill rank among my favorites for the new year:

Stock

Business Summary

Market Cap

Forward Dividend Yield

4. Ares Capital (NASDAQ: ARCC)

Leading publicly traded business development company (BDC)

$14 billion

9.5%

5. Realty Income (NYSE: O)

Large real estate investment trust (REIT)

$52 billion

5.7%

Data source: Yahoo! Finance. Market cap and forward dividend yield as of Dec. 31, 2025.

Realty Income could be especially popular with investors. In addition to a juicy yield, the REIT pays its dividends on a monthly basis. And Realty Income has increased its dividend for 30 consecutive years.

Magnificent growth plus dividends

I doubt anyone will buy the so-called "Magnificent Seven" stocks for their dividends, although several members of the group pay relatively small dividends. However, buying these stocks for their growth prospects is another story. Three of my top Mag7 dividend stocks are:

Stock

Business Summary

Market Cap

Forward Dividend Yield

6. Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL)

Search engine leader and cloud services provider

$3.8 trillion

0.27%

7. Apple (NASDAQ: AAPL)

Consumer technology giant that makes iPhones, Macs, and other products

$4 trillion

0.38%

8. Microsoft (NASDAQ: MSFT)

Software maker and cloud services provider

$3.6 trillion

0.75%

Data source: Yahoo! Finance. Market cap and forward dividend yield as of Dec. 31, 2025.

I'm especially bullish about Google's parent company, Alphabet, in 2026. It checks off nearly every box in the artificial intelligence (AI) arena, with a top-three cloud platform, a leading large language model (LLM), and AI chips that are gaining market momentum.

Energizers

Energy stocks have long been favorites among income investors for their dependable, high dividend yields. These four energy stocks look especially promising, in my view:

Stock

Business Summary

Market Cap

Forward Dividend Yield

9. Chevron (NYSE: CVX)

Large multinational oil and gas company

$306 billion

4.5%

10. Enbridge (NYSE: ENB)

Midstream energy company and natural gas utility

$104 billion

5.8%

11. Energy Transfer (NYSE: ET)

Midstream energy company

$56 billion

8%

12. Enterprise Products Partners (NYSE: EPD)

Midstream energy company

$69 billion

6.8%

Data source: Yahoo! Finance. Market cap and forward dividend yield as of Dec. 31, 2025.

Enbridge is perhaps the most intriguing stock in this group. Its pipelines transport 30% of the crude oil transported in North America and roughly one-fifth of the natural gas consumed in the U.S. However, the company is also the largest natural gas utility in North America. Enbridge has increased its dividend for 31 consecutive years.

Utility players

Utility stocks typically pay attractive dividends and can be safe havens during turbulent times. I like several utility stocks for 2026, with these seven especially standing out:

Stock

Business Summary

Market Cap

Forward Dividend Yield

13. Brookfield Infrastructure Partners (NYSE: BIP)

Infrastructure company with assets including utilities

$16 billion

4.9%

14. Brookfield Infrastructure Corp (NYSE: BIPC)

Infrastructure company with assets including utilities

$5 billion

3.8%

15. Brookfield Renewable Partners (NYSE: BEP)

Renewable energy provider

$18 billion

5.5%

16. Brookfield Renewable Corp (NYSE: BEPC)

Renewable energy provider

$7 billion

3.9%

17. Clearway Energy (NYSE: CWEN)

Renewable energy provider

$7 billion

5.4%

18. Dominion Energy (NYSE: D)

Utility company serving Virginia, North Carolina, and South Carolina

$50 billion

4.5%

19. Evergy (NASDAQ: EVRG)

Utility company serving Kansas and Missouri

$17 billion

3.8%

Data source: Yahoo! Finance. Market cap and forward dividend yield as of Dec. 31, 2025.

You probably noticed that "Brookfield" was mentioned four times. Brookfield Renewable and Brookfield Infrastructure each have two listed stocks: one for their limited partnerships (LPs) and one for their corporate entities. These companies are siblings sharing the same parent, Brookfield Asset Management (NYSE: BAM).

Great values

What's better than a solid dividend? A solid dividend plus an attractive valuation. These six stocks check off both boxes:

Stock

Business Summary

Market Cap

Forward Dividend Yield

20. Pfizer (NYSE: PFE)

Pharmaceutical company with multiple blockbuster drugs

$142 billion

6.9%

21. Prudential Financial (NYSE: PRU)

Large financial services company

$40 billion

4.8%

22. UnitedHealth Group (NYSE: UNH)

Large health insurer and pharmacy benefit manager (PBM)

$300 billion

2.7%

23. United Parcel Service (NYSE: UPS)

Large package delivery company

$84 billion

6.6%

24. US Bancorp (NYSE: USB)

Large bank

$83 billion

3.8%

25. Verizon Communications (NYSE: VZ)

Large telecommunications provider

$172 billion

6.8%

Data source: Yahoo! Finance. Market cap and forward dividend yield as of Dec. 31, 2025.

All of these stocks have forward price-to-earnings ratios that are much lower than the S&P 500's (SNPINDEX: ^GSPC) forward earnings multiple. I think that UnitedHealth Group's stock, in particular, could bounce back in 2026 after struggling in 2025.

One oddball

Finally, I've added one oddball to the list for 2026:

Stock

Business Summary

Market Cap

Forward Dividend Yield

26. FS Credit Opportunities (NYSE: FSCO)

Closed-end fund (CEF)

$1.25 billion

12.8%

Data source: Yahoo! Finance. Market cap and forward dividend yield as of Dec. 31, 2025.

FS Credit Opportunities is a closed-end fund that trades like a company's stock. It operates in a similar way to a BDC. I like its opportunities in direct lending. And I love its ultra-high-yield distribution.

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Keith Speights has positions in AbbVie, Alphabet, Apple, Ares Capital, Brookfield Infrastructure, Brookfield Infrastructure Partners, Brookfield Renewable, Brookfield Renewable Partners, Chevron, Clearway Energy, Dominion Energy, Enbridge, Energy Transfer, Enterprise Products Partners, Evergy, FS Credit Opportunities, Microsoft, Pfizer, Prudential Financial, Realty Income, U.S. Bancorp, United Parcel Service, and Verizon Communications. The Motley Fool has positions in and recommends AbbVie, Alphabet, Apple, Ares Capital, Brookfield Asset Management, Chevron, Enbridge, Microsoft, Pfizer, Realty Income, U.S. Bancorp, United Parcel Service, and Walmart. The Motley Fool recommends Brookfield Infrastructure Partners, Brookfield Renewable, Brookfield Renewable Partners, Dominion Energy, Enterprise Products Partners, UnitedHealth Group, and Verizon Communications and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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