3 Dividend Stocks to Own No Matter Where the Market Moves in 2026
247Wallst·2026-01-19 13:54

Core Viewpoint - Dividend investing can build wealth and provide passive income, with dividend stocks outperforming non-dividend payers in the long run [1] Group 1: Dividend Stocks Overview - Dividend stocks can be ideal long-term investments even for those focused on growth stocks, as they provide stability during market fluctuations [2] - Companies that are essential in their industries and offer in-demand products and services are key targets for dividend investing [2] Group 2: Verizon Communications - Verizon is a leading telecom company in the U.S. with over 146 million wireless customers, playing a significant role in the economy [4] - The company is expanding its broadband business and plans to add over 2.2 million new fiber subscribers through the acquisition of Frontier Communications [5] - Verizon's stock has a yield of 7.01%, a payout ratio of 57.68%, and has raised dividends for 21 consecutive years, paying an annual dividend of $2.76 per share [5] - Despite recent struggles in gaining new wireless customers, Verizon is viewed as a long-term stability and dividend investment opportunity [7] Group 3: Johnson & Johnson - Johnson & Johnson is now a pure-play health company focusing on medical technology and innovative drugs, operating in a non-cyclical industry [8] - The stock has a yield of 2.37%, priced at $219.57, and has gained 48% over the past year [9] - The company reported a 4.4% year-over-year revenue increase and a 15.7% EPS jump in the third quarter, generating $14.3 billion in free cash flow in the first nine months of 2025 [10] - Johnson & Johnson has a payout ratio of 48.94%, has increased dividends for 63 years, and pays an annual dividend of $5.20 per share with a 5-year dividend growth rate of 5.25% [12] Group 4: Coca-Cola - Coca-Cola is a blue-chip dividend stock with a yield of 2.89%, having raised dividends for 63 consecutive years [13] - The stock is priced at $70.48, with a 13% gain over the past year, and has a payout ratio of 67.85%, paying an annual dividend of $2.04 per share [14] - Coca-Cola operates an asset-light business model, selling concentrates and syrups to bottling partners, which minimizes operating costs and generates steady revenue [15] - The company has demonstrated resilience, generating over 100% total return over the past decade, making it a reliable choice for dividend investors [16]