Top dividend stocks & news

The S&P 500 dividend yield stands at approximately 1.15%, hovering near its lowest levels in 50 years. The only time it dipped lower was during the peak of the tech bubble at 1.09%.

With yields compressed, investors seeking reliable income and total returns must be more selective than ever.

Dividend-paying companies—particularly those that consistently raise their payouts—have been outperforming the broader market in 2026. The ProShares S&P 500 Dividend Aristocrats ETF (NOBL) is up about 3% year-to-date, while the S&P 500 itself is down roughly 1%.

This outperformance marks a notable shift. Since the COVID-19 pandemic, companies that increase dividends have delivered slightly better returns than their industry peers, compared to more neutral performance in the pre-pandemic era.

Shareholder-friendly actions like dividend hikes and buybacks have worked more effectively in the post-COVID environment. Dividend increases have shown the strongest results in sectors such as Real Estate, Industrials, and Utilities, while lagging in Communication Services, Technology, and Consumer Staples.

Consistent dividend growth often signals strong financial health, disciplined capital allocation, and confident management teams. With this in mind, we have highlighted stocks with relatively low payout ratios—meaning they distribute only a small portion of earnings as dividends.

These companies have room to raise payouts further in the coming years. He focused on names that recently announced dividend increases and sit in the bottom quintile of payout ratios within their groups. Here are three standout examples:

Dell Technologies (DELL)
Dell offers a dividend yield of about 1.4%. Earlier this year, the company raised its quarterly dividend from roughly 53 cents to 63 cents per share. The move reflects confidence amid surging demand for AI servers. Dell’s stock has climbed approximately 47% year-to-date, recently hitting a 52-week high after reporting strong fourth-quarter results that beat Wall Street expectations on both revenue and earnings. The company also provided upbeat guidance for fiscal 2027 revenue.

Analysts maintain an average “overweight” rating on Dell, though the consensus price target implies modest downside of around 6% from current levels. The combination of AI tailwinds and a growing dividend makes Dell an interesting name for investors balancing growth and income.

Toll Brothers (TOL)
The luxury homebuilder yields roughly 0.8%. In March, Toll Brothers announced a 4% dividend increase, lifting the quarterly payout to 26 cents per share (payable April 24 to shareholders of record on April 10). The company has benefited from resilience in the high-end housing market.

In its fiscal first quarter, Toll Brothers reported revenue of $2.15 billion, comfortably beating consensus estimates of $1.85 billion. Analysts rate the stock as overweight on average, with potential upside of about 22% to the mean price target. Truist recently initiated coverage with a “buy” rating, arguing that Toll Brothers appears undervalued relative to its future return-on-equity potential. The firm highlighted the company’s positioning to capitalize on any recovery in the luxury segment in 2027. Year-to-date, the stock is up more than 3%.

Steel Dynamics (STLD)
With a yield of approximately 1.2%, Steel Dynamics has gained about 9% so far in 2026. Over the past 12 months, the stock has surged 68%, supported in part by tariffs on steel and aluminum imports implemented during President Donald Trump’s administration. However, the company’s first-quarter guidance issued in March fell short of some Wall Street forecasts. Earnings are scheduled for release after the market close on April 20.

Steel Dynamics exemplifies how sector-specific tailwinds and a disciplined approach to returning capital can support both stock performance and dividend growth. Its low payout ratio leaves headroom for potential future increases.

There is a broader theme: in a low-yield world, the quality of dividend growth matters more than the headline yield. Companies with conservative payout ratios and a history of raising dividends can compound returns through both income and potential capital appreciation. While past performance is no guarantee of future results, the post-COVID track record suggests that disciplined dividend increasers—especially in resilient sectors—may continue to reward patient investors.

Investors should conduct their own due diligence, consider their risk tolerance and time horizon, and remember that stock prices can fluctuate. Dividend payments are never guaranteed and can be cut or suspended during periods of financial stress.

Still, in an environment where broad market yields are historically low, targeted exposure to high-quality dividend growers with expansion potential offers a compelling way to seek both income and outperformance.

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