In light of the recent meltdown of most of the market’s top technology names, are boring ol’ dividend stocks suddenly much more attractive? For plenty of investors this now seems to be the case.
And if you’re going to start your search for greener pastures anywhere in particular, the blue chip names of the Dow Jones Industrial Average may be a great place to begin — and even end — the effort.
Will AI create the world’s first trillionaire? Our team just released a report on the one little-known company, called an “Indispensable Monopoly” providing the critical technology Nvidia and Intel both need. Continue »
With that as the backdrop, here’s a closer look at three of the Dow’s top dividend-paying prospects for 2026.
If you’re looking for just above-average price appreciation, forget it — Verizon Communications (NYSE: VZ) can’t offer it. The United States’ mobile phone market is highly saturated, and highly competitive. Last quarter’s year-over-year revenue growth of about 2% is about as good as it gets. Merely matching inflation here would be a reasonable expectation of this stock.
This ticker’s dividend, however, makes these slow-moving capital gains worth it. Newcomers will be plugging into this name while its forward-looking yield stands at 6.1%, which would be difficult to match with any other name that brings a comparable risk to the table.
The business itself is, of course, well-suited for supporting recurring dividend payments. Consumers may postpone the purchase of a new car or skip a vacation. But they’re not about to give up the device in their pocket or purse that keeps them connected to the rest of the world.
It would be naïve to pretend pharmaceutical giant Merck (NYSE: MRK) didn’t become a little too dependent on its cancer-fighting Keytruda (which now accounts for roughly half of its sales) knowing it was headed toward patent expiration beginning in 2028. It would also be disingenuous, however, to ignore the fact that the company’s been taking enormous strides in preparation for that day.
Much of this work comes in the form of acquisitions, like 2023’s $10.8 billion purchase of Prometheus Biosciences and October’s $10 billion deal for Verona Pharma. And just last month, it essentially sealed the deal on Cidara Therapeutics, to the tune of $9.2 billion.
These aren’t inexpensive additions to the drugmaker’s portfolio. They are well-reasoned ones, fitting into Merck’s overarching plans to dominate certain segments of the drug market.
Leave a Reply