Here's My Top Dividend Stock for 2026 and Beyond

Core Viewpoint - JPMorgan Chase is positioned as a strong dividend stock due to its earnings power, disciplined capital returns, and scale, making it attractive for long-term investors heading into 2026 [1][14]. Financial Performance - In the second quarter, JPMorgan reported a net income of $15 billion, or $5.24 per share, on adjusted revenue of $45.7 billion, with a return on equity of 18% and return on tangible common equity (ROTCE) at 21% [4]. - The bank's markets revenue increased by 15% year over year, investment-banking fees rose by 7%, and assets under management grew by 18% [4]. Capital Returns - In the latest quarter, JPMorgan paid $3.9 billion in common dividends ($1.40 per share) and repurchased $7.1 billion of stock, with a total net payout of 71% of earnings over the last 12 months [6]. - The company's dividend payout ratio is at 28%, indicating a conservative approach to returning capital to shareholders [6]. Dividend Growth - The quarterly dividend was raised from $1.40 to $1.50 per share, resulting in an annualized dividend of $6.00 per share, yielding approximately 1.8% at current share prices [9]. - Management has authorized a new $50 billion common share repurchase program, supporting ongoing capital returns and dividend increases [11]. Financial Strength - JPMorgan's common equity tier 1 (CET1) ratio is at 15%, significantly above regulatory minimums, indicating strong financial health [8]. - The bank holds approximately $1.5 trillion in cash and marketable securities, providing resilience and flexibility for growth and shareholder returns [8]. Valuation - The price-to-book ratio is about 2.5, and the price-to-tangible book ratio is about 3.0, reflecting a reasonable valuation for a bank with high returns on equity and consistent earnings [12]. Long-term Outlook - JPMorgan's profitability is supported by its scale in consumer banking and strong positions in markets and advisory, with a focus on reinvesting capital at attractive rates [10]. - The combination of steady earnings, a healthy balance sheet, and disciplined capital returns supports continued dividend growth and reinvestment [12].