Core Insights - The article discusses the best non-REIT dividend stocks to invest in, highlighting the importance of dividends across various sectors beyond real estate investment trusts (REITs) [1][3] Dividend Market Overview - REITs have shown resilience in 2025, with aggregate funds from operations rising by 6.2%, net operating income increasing by 4.7%, and total dividends paid climbing by 6.3% compared to the same period in 2024, indicating strong fundamentals and disciplined capital access [2] - There is a significant demand for dividend-paying stocks, with over $1 trillion in funds and ETFs globally focusing on dividends, reflecting investors' desire for consistent and reliable income streams [3] Methodology for Stock Selection - The article identifies dividend-paying stocks outside of REITs with a yield above 3% as of January 31, and selects those with the highest number of hedge fund investors at the end of Q3 2025 [6] Company Highlights - **Open Text Corporation (NASDAQ:OTEX)**: - Dividend yield of 4.31% with 14 hedge fund holders; focuses on software for information management, heavily reliant on recurring revenue [9] - Analyst Stephanie Price from CIBC cut the price target to $37 from $40, maintaining a Neutral rating due to weaker-than-expected Q2 guidance [10] - The company plans to divest non-core business units, potentially reducing revenue by up to 20% to focus on AI-related content [12] - **NorthWestern Energy Group, Inc. (NASDAQ:NWE)**: - Dividend yield of 3.89% with 24 hedge fund holders; operates as a regulated utility providing electricity and natural gas [13] - Barclays raised its price target to $62 from $61, maintaining an Overweight rating following a solid Q3 performance with GAAP earnings of $0.62 per share [14][15] - The company is pursuing a strategic all-stock merger with Black Hills Corporation, expected to enhance its market presence [16]

Market Overview - The market in 2026 has experienced significant volatility, particularly in the tech sector, with major companies like Microsoft facing large price fluctuations while AI stocks such as Nvidia and Palantir are showing weakness [1] Investment Focus - As volatility increases, investors are shifting their focus towards income-generating assets, particularly dividend stocks, to better position themselves ahead of broader market movements [2] Dividend Stocks Performance - Dividend stocks that are showing early strength are characterized by improving fundamentals, growing confidence, and positive shifts in their balance sheets, making them attractive for both immediate income and potential future gains [3] Stock Screening Methodology - A stock screening process was conducted using Barchart's Stock Screener, resulting in a list of dividend stocks with strong year-to-date performance and analyst support [4][5] Featured Dividend Stock: Albemarle Corp - Albemarle Corp (ALB) is highlighted as a leading dividend stock, being a specialty chemicals company and a pioneer in lithium batteries, with a year-to-date stock increase of approximately 28% and a 52-week increase of nearly 110% [8] - The company has a consistent history of increasing dividends for over 30 years, currently offering a forward annual dividend of $1.62, which equates to a yield of around 0.8% [8]

Group 1 - The article emphasizes the importance of patience with dividend stocks, highlighting Cardinal Health (CAH) as a case where the market initially overlooked its underlying growth before it gained traction [2] - iREIT+HOYA Capital focuses on income-producing asset classes, aiming to provide sustainable portfolio income, diversification, and inflation hedging for investors [1][2] - The investment group offers research on various asset classes including REITs, ETFs, closed-end funds, preferreds, and dividend champions, targeting dividend yields up to 10% [2] Group 2 - The article does not provide any specific financial advice or recommendations, encouraging readers to conduct their own due diligence before making investment decisions [4][5] - There is a disclosure indicating that the author has no current positions in the mentioned companies but may initiate a long position in the near future [3]

Core Viewpoint - Investors favor dividend stocks, particularly blue-chip varieties, due to their ability to provide a significant income stream and substantial total-return potential [1] Group 1 - Dividend stocks are attractive for their income generation capabilities [1] - Blue-chip stocks are highlighted as a preferred choice among investors [1] - The total-return potential of dividend stocks is emphasized as a key factor for investment [1]

Core Insights - The article emphasizes the importance of a hybrid investment strategy that combines classic dividend growth stocks with Business Development Companies, REITs, and Closed End Funds to enhance investment income while achieving total returns comparable to traditional index funds [1]. Investment Strategy - The company advocates for a balanced approach to investing, suggesting that a solid base of dividend growth stocks can be effectively supplemented with other asset types to maximize income potential [1]. - The strategy aims to achieve a total return that aligns with the performance of the S&P index, indicating a focus on both growth and income [1].

Core Insights - The article emphasizes the importance of a hybrid investment strategy that combines classic dividend growth stocks with Business Development Companies, REITs, and Closed End Funds to enhance investment income while achieving total returns comparable to traditional index funds [1]. Investment Strategy - The company advocates for a balanced approach to investing, suggesting that a solid base of dividend growth stocks can be effectively supplemented with other asset types to maximize income potential [1]. - The strategy aims to achieve a total return that aligns with the performance of the S&P index, indicating a focus on both growth and income [1].

Core Viewpoint - The article highlights three under-the-radar dividend stocks that offer attractive yields, significantly higher than the S&P 500's current yield of approximately 1.1% [1]. Group 1: Ares Capital - Ares Capital (ARCC) has a dividend yield of 9.5% and operates as a business development company (BDC), required to pay out at least 90% of its taxable income as dividends [2]. - The company has maintained stable-to-increasing dividends for 16 years, despite challenges faced by many BDCs [2]. - Ares Capital focuses on providing capital to middle-market companies with annual revenues between $100 million and $1 billion, generating income through direct loans and equity investments [3]. Group 2: Starwood Property Trust - Starwood Property Trust (STWD) leads with a dividend yield of 10.7% and has never cut its dividend since its IPO in 2009 [6]. - The REIT has maintained its dividend payout rate for over a decade, despite challenges faced by other REITs [6]. - Starwood has diversified its investments from commercial mortgages to high-quality real estate assets and infrastructure lending, which has reduced risk and provided new growth opportunities [9]. - The recent $2.2 billion acquisition of Fundamental Income Properties added 467 properties with long-term leases, enhancing its rental income stability [10]. Group 3: Western Midstream Partners - Western Midstream Partners (WES) offers a distribution yield of 9% and operates as a master limited partnership (MLP) [11]. - The MLP reset its distribution level in 2020 due to the pandemic but has since rebuilt its payout to above pre-pandemic levels [11]. - The company owns energy midstream assets that generate stable cash flow, which is used for distributions and growth investments [13]. - Western Midstream aims to increase its high-yielding payout at a low-to-mid single-digit annual rate and has recently closed a $2 billion acquisition of Aris Water Solutions [14].

Core Viewpoint - Investing in dividend stocks provides a reliable income stream that can be reinvested or used for expenses, allowing investors to hold shares without selling them [1] Group 1: Consumer Spending and Dividend Stocks - Consumer spending is crucial for the economy, and high-quality dividend stocks can be found in consumer-facing companies with strong brands [2] - Examples of such companies include Costco Wholesale, The Coca-Cola Company, and Altria Group, each representing different investment styles [2] Group 2: Costco Wholesale - Costco Wholesale is a leading retailer with a loyal customer base, known for its membership model and bulk merchandise sales [3] - The company has a market capitalization of $431 billion, with a current stock price of $970.66 and a dividend yield of 0.52% [4][5] - Costco has paid and raised its dividend for 20 consecutive years, spending only a quarter of its earnings on dividends, indicating potential for future growth [5] Group 3: The Coca-Cola Company - Coca-Cola is a global beverage leader with a strong track record of dividend growth, having increased its dividend for 62 consecutive years [6] - The company has a market capitalization of $316 billion, with a current stock price of $73.55 and a dividend yield of 2.77% [7][8] - Coca-Cola's growth is supported by a rising global population and brand recognition, allowing for continued expansion in a fragmented beverage market [8] Group 4: Altria Group - Altria Group, known for its Marlboro cigarettes, has maintained profitability despite declining cigarette sales due to its pricing power [9] - The company has a market capitalization of $107 billion, with a current stock price of $63.62 and a dividend yield of 6.54% [10] - Altria has achieved 54 consecutive annual dividend increases, providing a substantial yield despite low single-digit earnings growth [10]

Core Viewpoint - Johnson & Johnson (NYSE: JNJ) has provided a strong 2026 outlook, surpassing Wall Street expectations despite facing significant challenges, including a drug pricing agreement and tariff-related costs [2][3]. Financial Performance - For 2026, Johnson & Johnson anticipates sales between $99.5 billion and $100.5 billion, exceeding analyst projections of approximately $98.9 billion [3]. - The company expects full-year earnings per share to be in the range of $11.43 to $11.63, slightly above the consensus estimate of $11.45 [3]. Management Outlook - CEO Joaquin Duato expressed optimism during the earnings call, indicating that the company expects to achieve faster growth in 2026 compared to 2025 and aims for double-digit growth by the end of the decade [4]. Business Operations - Johnson & Johnson operates across the healthcare sector, developing and selling a diverse range of products, including pharmaceuticals and medical devices [4]. Challenges - The drug pricing agreement with the Trump administration is projected to cost the company "hundreds of millions of dollars," alongside an expected $500 million in tariff-related costs impacting its medical devices segment [2][3].

Core Insights - The article discusses the 15 best S&P 500 dividend stocks to consider for investment in 2026, emphasizing the stability that dividend stocks can provide during market downturns [1] Dividend and Buyback Strategy - Dan Lefkovitz from Morningstar Indexes suggests that combining dividend-paying stocks with companies that actively buy back shares can yield better returns compared to a high-dividend-only strategy [2] - An index that includes both dividends and buybacks has outperformed a high-dividend-only index over the past three years, although it still lags behind the overall US market [2] Cash Return to Shareholders - The article highlights the difference in how companies return cash to shareholders, noting that dividends are a long-term commitment while buybacks are more flexible and often increase when management perceives the stock as undervalued [3] - Large technology companies have been leading in buyback activities, while dividend payments are primarily concentrated in sectors like financials, utilities, energy, and consumer staples [3] International Dividend Yields - Income-focused investors are encouraged to look beyond the US, as domestic dividend yields have decreased to approximately 1.1%, while some European regions offer yields above 3% [4] - Caution is advised against chasing high yields, as unusually high payouts may indicate underlying business stress and potential future dividend cuts [4] Methodology for Stock Selection - The selection process for the 15 best dividend stocks involved screening S&P 500 companies with a market cap of at least $10 billion, focusing on those with stable dividends and yields around 2% as of January 21 [6] - The final list was based on popularity among hedge funds, utilizing data from Insider Monkey's Q3 2025 database [6][7] Company-Specific Insights - **Verizon Communications Inc. (NYSE:VZ)**: - Holds a dividend yield of 7.06% as of January 21, with 60 hedge fund holders [8] - Bernstein has cut its price target for Verizon to $44, citing increased competition in the telecom industry [8] - Verizon's $20 billion acquisition of Frontier Communications was approved, with commitments to expand fiber internet and wireless coverage in California [9] - **Amgen Inc. (NASDAQ:AMGN)**: - Has a dividend yield of 3.05% as of January 21, with 62 hedge fund holders [11] - Bernstein downgraded Amgen to Market Perform, indicating 2026 may be a waiting year for its product MariTide [11] - Amgen announced the acquisition of Dark Blue Therapeutics for up to $840 million, enhancing its oncology pipeline [12][13]