As we bid farewell to 2025, investors will be looking for new stocks to invest in heading into 2026, perhaps as a result of rebalancing, tax-loss harvesting or the deployment of idle capital.
But not all actions are equal. Some offer (the hope of) growth, while others offer income. Income provides a hedge against fear, as investors tend to “hold longer” income investments, regardless of volatility. If that’s you, you’ll be pleased to read about my five best dividend stocks to start a position as we enter 2026.
Annual Dividend Yield (FWD): I intentionally left this blank to see the full range of forward dividend yields across companies.
Market capitalization: I set the market cap at $10 billion and up (large to mega). Generally speaking, companies with larger market capitalization are more resilient to macroeconomic factors, which is a critical factor for dividend investing.
Number of analysts: I only look for dividend stocks that have more than 16 analysts covering them. More analysts mean a more reliable consensus.
Current Analyst Rating: 4 to 5, which means a Moderate purchase rating that is very close to a strong buy, and a Strong buy classification.
The best ideas for dividends: I selected “Best Dividend Stocks” to use Barchart’s list of attractive dividend stocks.
After running the filters, I was left with seven companies.
I then ranked them from highest to lowest forward dividend yield, and within the top five I deliberately omitted Smurfit Westrock Plc (SW) and American Tower Corp (AMT). The former is a relatively new player compared to the rest, and I only want those with a proven track record, while the latter has been in a sharp decline in its share price for five years.
From there, I came up with my five most attractive dividend stocks to invest in in 2026.
First on my list is Energy Transfer LP. It is one of the largest pipeline companies here in the United States. The company supplies natural gas and other energy products from coast to coast through its extensive network of gas pipelines. Business is particularly strong in Texas and surrounding regions, where most of the United States’ energy is produced.
For the full year 2024, the company’s revenue rose 5% to about $82.7 billion, while net income rose 28% to about $4.4 billion, or $1.29 in core earnings per share, compared with the same period last year. Right now, the company’s market capitalization is around $56.3 billion, while its shares are trading at $16.21 per share with a generally upward trajectory.
In terms of dividends, Energy Transfer pays an annualized dividend of $1.33 per share, or $0.333 per quarter. This translates to a remarkably high forward yield of 8.2%. The company’s dividend payout ratio is 99.18% of its earnings, which is typical for a Master Limited Partnership (MLP).
A total of 17 analysts rated Energy Transfer a Strong Buy with a score of 4.59 out of 5, and this rating has remained relatively stable over the last 3 months. The high price target is $25 per share, suggesting upside potential of over 54% from current levels.
The next dividend stock on my list is also a gas-related company, Oneok Inc. It also operates gas pipelines focused on natural gas liquids; This is what comes out along with the natural gas during production. These liquids are used to make our everyday products, such as plastics and chemicals. Like other pipeline operators, Oneok doesn’t really care if prices go up or down. It only charges tolls for moving products.
In fiscal 2024, the company’s revenue increased approximately 22.7% to around $21.7 billion, while its results increased 14% to around $3 billion, or $5.32 per share (basic). Oneok’s market capitalization is nearly $46 billion and its stock is trading at $71.69 per share.
As for dividends, the company pays an annualized dividend of $4.12 per share, or $1,030 per quarter, for a yield of 5.75%. The company’s payout ratio is 75.43%, also relatively high, but it is only possible due to the stability of its income.
A consensus of 19 analysts rates Oneok as a Moderate Buy with a score of 4.21 out of 5, and this rating has also remained fairly stable over the past 3 months. The high price target for Oneok stock is $114 per share, which represents approximately a 59% upside from current levels.
Permian Resources Corp. also has an anchor position on one of my lists of best dividend stocks. This company drills for oil and gas in the Permian Basin in West Texas and New Mexico. Unlike the first two pipeline companies, this one actually pumps oil and gas out of the ground. In fact, the Permian is one of the most productive oil regions in the world. Your luck is directly tied to oil and gas prices, and you make more money when prices rise.
For the full year 2024, the company’s revenue rose 60% to about $5 billion, while net income rose 106% to about $985 billion, or $1.54 in core earnings per share. Permian’s market capitalization right now is almost $12 billion, with the stock trading at $13.77 per share, which is also on an upward trend.
The company pays an annualized dividend of $0.60 per share, paid quarterly at $0.15 per share, translating to a future yield of 4.35%. Meanwhile, the payout ratio is 40% of your earnings, so it’s within a very acceptable range.
A total of 24 analysts collectively rate Permian Resources a Strong Buy with a near-perfect score of 4.74 out of 5. Like the others, this has remained relatively stable over the past 3 months. The high price target is $23 per share, or 67% higher than the current price.
The next dividend stock is DTE Energy Company, a traditional electric and gas utility company primarily serving Michigan. It generates electricity, delivers it to homes and businesses, and also provides natural gas service. As a heavily regulated company, you basically have a monopoly in your territory, but regulators largely control the profits you can make.
DTE Energy’s annual revenue in 2024 decreased 2% to $12.4 billion, driven by cyclical demand. Meanwhile, net income rose marginally to $1.4 billion, or $6.78 per share (basic). Today, the company’s market capitalization is $26.8 billion and its stock is trading at $129.90 per share.
As for its dividends, the company pays an annualized rate of $4.66 per share, or $1.165 each quarter, which translates to a future yield of almost 3.6%. Its payout ratio is 60% of earnings, providing a balance between growing the business and rewarding shareholders.
DTE Energy’s average rating from 17 analysts is Strong Buy with a score of 4 out of 5, and this has also remained relatively stable over the past 3 months. The high price target is $158 per share, reflecting up to a 22% upside from current levels.
The last (but not least) dividend company on my list is a conglomerate, Restaurant Brands International, better known as RBI. It owns Burger King, Popeyes, Firehouse Subs, Tim Hortons and more. Rather than managing most locations itself, it operates primarily as a franchisor, licensing its brands to franchisees who operate the individual restaurants.
Last year, RBI’s revenue rose 17% to $8.4 billion; However, its net income decreased 14% to around $1 billion, or $3.21 per share (basic). The conglomerate’s market capitalization now stands at about $23 billion, and its share price is trading at $69.91.
Meanwhile, the company pays an annualized dividend of $2.48, or $0.62 each quarter. This translates to a forward yield of just over 3.5%. The company’s payout ratio is 49.40%, which is also within a very acceptable range.
RBI’s average rating is Moderate Buy with a score of 4.10 out of 5, according to a consensus of 29 analysts, and this rating has remained relatively stable over the past 3 months. The highest price target is $96 per share, implying an upside of around 37%.
These five companies are among the best dividend stocks to consider heading into 2026. Dividend yields are attractive, stock trajectories are positive, and fundamentals look strong. That said, it’s worth noting that the market can surprise even the best, so it’s important to analyze these companies from different angles. All things being equal, I think these dividend companies will please investors looking for stable and substantial returns next year and beyond.
As of the date of publication, Rick Orford had no (directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. This article was originally published on Barchart.com
