In this article, we will take a look at the 10 Best “Dogs of the Dow” Stocks to Buy for the Rest of 2026.
A December 2025 report by CNBC highlighted that Kevin Simpson, founder and chief investment officer at Capital Wealth Planning, focused on five stocks tied to a strategy many income investors have followed for years. The “Dogs of the Dow” strategy was popularized by investor Michael O’Higgins in the early 1990s. It includes the 10 stocks in the Dow Jones Industrial Average with the highest dividend yields.
Dividend yields usually move in the opposite direction from stock prices. When yields rise, it can signal that a stock is trading at a lower valuation and may have room to recover. Since these companies are part of the blue-chip Dow, investors also see them as relatively stable, higher-quality names. The strategy appeals to investors looking for steady cash payouts while waiting for potential price appreciation.
After lagging the broader market in both 2023 and 2024, the Dogs posted a strong comeback in 2025. The group gained 17% during the year, ahead of the Dow’s 13.7% return over the same stretch. Simpson said this marked the strategy’s strongest performance since 2019, citing data from Bespoke Group.
Looking ahead to 2026, Simpson is optimistic about the three healthcare names in the strategy: Amgen, Merck, and Johnson & Johnson. Speaking on CNBC’s “Worldwide Exchange”, Simpson said the healthcare trade started to “come to life at the end of 2025.” He also pointed to Verizon as an attractive option for income-focused investors.“If you’re a dividend player, Verizon always seems to top that list because it’s a very slow growth company, which translates to a slow appreciation of the stock. According to Simpson, because the Dogs strategy is yield-driven, its holdings tend to change every year.
Given this, we will take a look at the best Dogs of the Dow for 2026.
Our Methodology
For this list, we screened dividend-paying companies within the Dow 30. Since the focus was on companies with recent developments, the selection only included those offering dividend yields of at least 1%, as of May 15. Finally, we picked stocks with a short %age of float below 4%, and ranked them accordingly.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10. NIKE, Inc. (NYSE:NKE)
Short Percentage of Float: 4.78%
Dividend Yield as of May 15: 3.87%
A May 12 report from The Wall Street Journal revisited how NIKE, Inc. (NYSE:NKE)’s expansion into China started decades ago, when co-founder Phil Knight traveled across the country by train and saw a major opportunity for the brand. His idea of reaching “one billion people, two billion feet” captured Nike’s long-term ambitions in the market.
That strategy later proved successful. By 2010, China had become one of Nike’s most profitable regions and a blueprint for many US companies looking to benefit from the country’s economic growth. The report said Nike’s position in China has weakened significantly in recent years. The company is now dealing with strong local competition and rising consumer nationalism, turning what was once one of its biggest success stories into a challenging market for the sportswear company.
Over the past three quarters, Nike’s revenue in China has dropped 28% compared with the same period five years ago, even as the country’s sportswear industry continued to grow. The company has also reshaped its China leadership team, removed several senior employees, and acknowledged deeper structural problems in the market. China has now become the weakest-performing segment in Nike’s global business.
NIKE, Inc. designs, markets, and distributes athletic footwear, apparel, equipment, accessories, and services for sports and fitness activities.
9. Amgen Inc. (NASDAQ:AMGN)
Short Percentage of Float: 2.41%
Dividend Yield as of May 15: 3.09%
On May 14, Piper Sandler lowered its price recommendation on Amgen Inc. (NASDAQ:AMGN) to $427 from $432. It reiterated an Overweight rating on the stock. The firm said that, from a broader business perspective, it still sees potential upside to consensus revenue estimates not only for 2026 but also for 2027. Analysts noted that this outlook is less tied to the company’s core commercial products and more driven by continued momentum in the rare disease segment, especially Uplizna. Piper also pointed to Tepezza as a possible long-term growth driver following strong Phase III results for its subcutaneous formulation.
A week earlier, on May 7, Freedom Broker upgraded Amgen to Buy from Hold and kept its price target unchanged at $375.The firm said Amgen’s first-quarter results were “fully in line with our expectations, although the quarter is seasonally weak.” Analysts added that it is “still too early to draw firm conclusions about the earnings trajectory for the full year,” though the company’s main growth drivers remain in place. Following the stock’s decline in the first quarter and the steady performance of Amgen’s innovative portfolio, which has helped offset weakness in mature products, the firm decided to upgrade the shares.
Amgen Inc. is a biotechnology company that discovers, develops, manufactures, and delivers medicines targeting serious diseases. The company focuses on areas with high unmet medical needs and uses its scientific expertise to develop treatments aimed at improving patients’ lives. It operates through the human therapeutics segment.
8. International Business Machines Corporation (NYSE:IBM)
Short Percentage of Float: 2.36%
Dividend Yield as of May 15: 3.08%
On May 7, RBC Capital Markets lowered its price recommendation on International Business Machines Corporation (NYSE:IBM) to $300 from $330. It reiterated an Outperform rating on the stock. The firm updated its model after attending IBM’s Think user conference, where management discussed the strategic outlook for the company’s core businesses, including hybrid cloud and AI, along with a growing focus on quantum computing. According to the analyst, the lower price target mainly reflects compression in peer valuation multiples.
During the company’s Q1 2026 earnings call, CFO James Kavanaugh reaffirmed IBM’s full-year guidance. He said the company’s strong start to the year increased confidence in delivering constant-currency revenue growth of more than 5% in 2026, along with nearly $1 billion in year-over-year free cash flow growth.
For the second quarter, Kavanaugh said constant-currency revenue growth was expected to stay in line with the company’s full-year outlook. He also noted that IBM expected around 50 basis points of expansion in operating pre-tax margin. Gains from software mix improvements and productivity initiatives are expected to offset dilution related to the early closing of Confluent.
International Business Machines Corporation provides hybrid cloud, artificial intelligence, and consulting services globally. The company operates through its Software, Consulting, Infrastructure, and Financing segments.
7. American Express Company (NYSE:AXP)
Short Percentage of Float: 2.09%
Dividend Yield as of May 15: 1.21%
On May 14, Freedom Broker upgraded American Express Company (NYSE:AXP) to Buy from Hold. It also raised its price target on the stock to $370 from $325. The firm said American Express delivered better-than-expected first-quarter results but kept its full-year guidance unchanged despite the strong performance. According to the analyst, that decision “slightly cooled market sentiment.”
During the Q1 2026 earnings call, Chairman and CEO Stephen Squeri said the company started the year on a solid footing. Revenue increased 11%, or 10% on an FX-adjusted basis, while earnings per share rose 18% year-over-year to $4.28. Squeri said the company’s performance and outlook encouraged American Express to increase investments in marketing and technology to support future growth opportunities and maintain momentum.
He also noted that the company signed a multi-year global partnership with the National Football League in March. Under the agreement, American Express will become the league’s official payments partner beginning with the 2026 season.
In addition, Squeri said the company introduced a roadmap for several new commercial products and solutions expected to launch across the U.S. in 2026 for businesses of different sizes. The rollout will begin with the Graphite Business Cash Unlimited Card.
American Express Company is a global payments and premium lifestyle brand powered by technology. Its card-issuing, merchant-acquiring, and card network businesses provide products and services to consumers, small businesses, mid-sized companies, and large corporations worldwide.
6. UnitedHealth Group Incorporated (NYSE:UNH)
Short Percentage of Float: 1.69%
Dividend Yield as of May 15: 2.26%
On May 18, Reuters reported that shares of UnitedHealth Group Incorporated (NYSE:UNH) dropped more than 2% on Monday after Berkshire Hathaway revealed it had sold its stake in the healthcare giant as part of a first-quarter portfolio reshuffle led by CEO Greg Abel.
Berkshire’s investment in UnitedHealth had attracted attention last August when the company disclosed it bought 5 million shares. At the time, the move boosted investor confidence, with many viewing it as a vote of confidence in the company’s turnaround efforts under CEO Stephen Hemsley. That position is now gone. On May 15, Berkshire confirmed it had exited its investment in the health insurer.
Separately, on May 13, Bank of America analyst Kevin Fischbeck raised the firm’s price recommendation on UNH to $420 from $380. It reiterated a Neutral rating on the shares. The analyst said conversations with the company’s leadership team at the BofA Healthcare Conference carried a “bullish” tone. Management indicated that it believes the company can return to at least the low end of its target margins across most of its businesses by 2028.
UnitedHealth Group Incorporated operates across several healthcare and wellness businesses, including Optum Health, Optum Insight, Optum Rx, and UnitedHealthcare. Its insurance operations span employer and individual plans, Medicare and retirement services, and community and state programs.
5. Cisco Systems, Inc. (NASDAQ:CSCO)
Short Percentage of Float: 1.56%
Dividend Yield as of May 15: 1.43%
On May 15, HSBC Holdings plc upgraded Cisco Systems, Inc. (NASDAQ:CSCO) to Buy from Hold. It sharply raised its price target on the stock to $137 from $77. The firm said Cisco delivered a “modest” beat in fiscal Q3, though growing AI demand has started to shift the conversation around the company’s long-term growth outlook. Management now expects fiscal 2027 AI revenue to reach at least $6 billion, which implies roughly 50% year-over-year growth. The analyst pointed to stronger momentum in AI infrastructure and improved earnings visibility as the main reasons behind the higher rating and target price.
During the fiscal Q3 2026 earnings call, Chairman and CEO Chuck Robbins said Cisco generated record quarterly revenue of $15.8 billion, up 12% from the same period last year. Total product orders also increased 35% year-over-year. Robbins added that AI infrastructure orders from hyperscale customers reached $1.9 billion during the quarter. The strong demand environment prompted Cisco to raise its outlook for AI infrastructure orders from hyperscalers to around $9 billion for fiscal 2026. Robbins also said the company expects to recognize nearly $4 billion in AI infrastructure revenue from hyperscaler customers during the fiscal year.
He further noted that Cisco introduced a restructuring plan designed to shift resources toward faster-growing areas such as silicon, optics, security, and AI. The goal is to better position the company for emerging opportunities across the technology market. Executive Vice President and CFO Mark Patterson said quarterly revenue reached a record $15.8 billion, while non-GAAP earnings per share came in at $1.06.
Cisco Systems, Inc. develops and sells technologies that power the Internet. The company continues integrating its product portfolio across networking, security, collaboration, applications, and cloud services.
4. The Walt Disney Company (NYSE:DIS)
Short Percentage of Float: 1.23%
Dividend Yield as of May 15: 1.46%
On May 8, Wells Fargo & Company lowered its price recommendation on The Walt Disney Company (NYSE:DIS) to $146 from $148. It reiterated an Overweight rating on the shares. The firm said its positive view on Disney has largely been tied to the idea of a new phase under refreshed management, with the company focusing on getting more value out of its existing assets. Analysts pointed to early signs of improvement in content and direct-to-consumer operations, while continued strength in the Parks business is helping support earnings growth. Wells Fargo added that it still sees more than 30% upside in the stock over the next 12 months.
A day earlier, on May 7, Raymond James raised its price goal on Disney to $119 from $115. It kept an Outperform rating on the stock. The firm said Disney reported stronger-than-expected fiscal Q2 results and slightly increased its fiscal 2026 EPS growth outlook to 12%. According to the analyst, the results reinforced confidence that the company can deliver double-digit EPS compound annual growth through fiscal 2026 and fiscal 2027. The note also highlighted several factors supporting that outlook, including Disney’s large streaming platform, stable sports exposure, strong franchise portfolio, and steady cash flow generation from Parks and Experiences. The analyst added that streaming is becoming a larger contributor to operating income growth, even though Experiences remains Disney’s biggest profit driver. Attention is also shifting toward the second half of fiscal 2026 as broader macroeconomic concerns begin to ease.
The Walt Disney Company is a global entertainment company operating across the Entertainment, Sports, and Experiences segments. Its Entertainment business includes film production, television content, and global distribution activities outside of sports programming.
3. The Home Depot, Inc. (NYSE:HD)
Short Percentage of Float: 1.22%
Dividend Yield as of May 15: 3.13%
On May 15, Piper Sandler lowered its price recommendation on The Home Depot, Inc. (NYSE:HD) to $421 from $422. It reiterated an Overweight rating on the shares. The firm said investors have become increasingly concerned about consumer discretionary spending, particularly as higher gas prices continue to pressure household budgets. Even so, consumer spending has remained relatively resilient. Piper Sandler noted that tax refunds stood out during the first quarter, though there has been little clear evidence that the extra cash flowed into retail spending. The firm believes many middle- and upper-income consumers likely chose to save those funds instead. In home improvement, sluggish demand trends that appeared during the fourth quarter seem to have continued into the new year.
A day earlier, on May 14, Wells Fargo lowered its price target on Home Depot to $375 from $420 and kept an Overweight rating on the stock. The firm said discretionary retail remains out of favor with investors, while recent industry checks pointed to softer conditions. Wells Fargo added that companies guiding toward stronger performance in the second half of the year are facing skepticism from the market. The note also said that nearly every company covered in Wells Fargo’s Hardlines sector has declined year-to-date as hopes for stimulus fade, oil prices rise, and broader spending trends remain weak.
The Home Depot, Inc. sells home improvement products, building materials, lawn and garden supplies, décor products, and maintenance and repair items through its stores and online platforms.
2. JPMorgan Chase & Co. (NYSE:JPM)
Short Percentage of Float: 1.01%
Dividend Yield as of May 15: 2.02%
A May 12 report from Bloomberg said JPMorgan Chase & Co. posted record balances in its prime-brokerage business as clients looked to take advantage of heightened market volatility in recent weeks. According to Claudia Jury and Scott Hamilton, the bank’s global co-heads of sales and research, clients generally remained optimistic and had started unwinding some of the hedges they put in place during the early stages of the Iran conflict. Their focus, the executives said, had shifted more toward US corporate earnings.
Jury noted that clients were actively trading and taking on more risk as they tried to benefit from ongoing market swings despite continued geopolitical uncertainty. The two executives were in Paris alongside other senior JPMorgan leaders for the company’s annual Global Markets Conference, which brought together hundreds of clients. Their comments came shortly after JPMorgan reported a record $11.6 billion in first-quarter trading revenue, up 20% from a year earlier.
The report also noted that volatile markets have boosted demand for prime-brokerage services, where banks provide hedge funds with cash and securities to support trading activity. Bloomberg pointed to Citigroup Inc., which recently announced plans to grow its prime-brokerage balances to more than $700 billion by 2028, more than triple 2022 levels. Jury and Hamilton also said clients were showing growing interest in artificial intelligence and how JPMorgan is using the technology internally. They highlighted a new AI-powered tool that allows clients to search through a decade of research more efficiently. Hamilton added that AI is also helping the bank personalize communication with clients more effectively.
JPMorgan Chase & Co. is a financial holding company involved in investment banking, consumer and small-business financial services, commercial banking, transaction processing, and asset management.
1. Johnson & Johnson (NYSE:JNJ)
Short Percentage of Float: 0.82%
Dividend Yield as of May 15: 2.35%
On May 13, Leerink Partners upgraded Johnson & Johnson to Outperform from Market Perform and raised its price target to $265 from $252.The firm said the company’s “strong new drug momentum” is expected to support faster revenue growth and stronger share performance. Leerink also raised its estimates for Icotyde and Inlexzo and said it expects Johnson & Johnson to provide stronger support for its long-term growth targets during its December 8 analyst day. According to the firm, management could further justify its goal of delivering double-digit revenue growth later in the decade.
During the company’s Q1 2026 earnings call, CFO Joseph Wolk said JNJ raised its operational sales growth guidance to a range of 5.9% to 6.9%. That implies a midpoint of roughly $100.2 billion. He also said reported sales growth is now expected to range between 6.5% and 7.5%, with a midpoint near $100.8 billion.
Wolk added that the company increased its adjusted EPS guidance by $0.02, bringing the expected range to $11.30 to $11.50.Management also continues to expect adjusted pretax operating margin expansion of at least 50 basis points in 2026, though the company plans heavier investment spending during the first half of the year.
Compared with the company’s original 2026 outlook shared during the fourth-quarter earnings call, management sounded more confident this time around. The language shifted from “we anticipate” to “we are increasing” when discussing both sales growth and adjusted EPS guidance.
Johnson & Johnson develops, manufactures, and sells a broad range of healthcare products. The company operates through its Innovative Medicine and MedTech segments.
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