In this article, we will take a look at the 10 Best Performing Dividend Stocks So Far in 2026.
Dividend stocks can offer solid returns, though some strategies have worked better than others over time. According to Trivariate Research, one of the more effective approaches has been focusing on large-cap companies that consistently grow their dividends. In a recent note, founder Adam Parker said dividends remain a durable return factor for stocks.
Parker highlighted what he called an “investable universe” of 479 stocks. Over both 25-year and five-year periods, this group outperformed the top 700 equities. To qualify, companies needed to have a market capitalization of at least $10 billion and either a dividend yield above 10 basis points that is still growing or a yield above 50 basis points.
The firm found that the median company in this group increases its dividend by about 5% annually. One basis point equals 0.01%. Parker also found that companies in the two lowest payout ratio quintiles delivered the strongest performance over the past five years. According to the research, dividend increases tend to work best among companies with strong cash positions and lower valuations.
He added that lower payout ratio companies that raise their dividends tend to “strongly outperform” their industry group after making the announcement. A payout ratio measures how much of a company’s earnings is paid out to shareholders.
Given this, we will take a look at some of the best performing dividend stocks in 2026 so far.
Photo by Vitaly Taranov on Unsplash
Our Methodology:
For this article, we screened for dividend stocks that have strong gains in 2026 so far. We picked companies that have recently reported noteworthy developments likely to impact investor sentiment. These companies are also popular among elite funds and analysts.
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. Pitney Bowes Inc. (NYSE:PBI)
YTD Returns as of May 5: 36.9%
On April 24, Goldman Sachs raised its price recommendation on Pitney Bowes Inc. (NYSE:PBI) to $13.70 from $12. It reiterated a Neutral rating on the shares. The firm noted that Pitney Bowes reported a 3% year-over-year revenue decline in Q1, though that marked an improvement from the previous quarter. The results were supported by stronger performance in SendTech and competitive gains in Presort, helped by better sales execution and customer retention, the analyst said in a research note.
Despite the drop in revenue, operating margins expanded sharply because of cost controls. Goldman Sachs also modestly raised its 2026 outlook, now expecting a smaller revenue decline and less pressure on margins than previously forecast.
On April 22, Citizens raised its price goal on Pitney Bowes to $17 from $14. It maintained an Outperform rating on the shares. The firm said Pitney Bowes continues to benefit from improving execution under CEO Kurt Wolf. According to the analyst, the company is seeing strength across its core segments, while higher guidance and its market position could support stronger pricing power over time. Citizens also pointed to several additional tailwinds. These include easing headwinds in 2026, aggressive share and debt repurchases that could improve per-share value, and what the firm described as strong alignment between management and shareholders. The analyst said these factors reinforce confidence in further upside for the stock.
Pitney Bowes Inc. (NYSE:PBI) is a technology-focused company that provides SaaS shipping solutions, mailing technology, and financial services to customers worldwide.
9. HF Sinclair Corporation (NYSE:DINO)
YTD Returns as of May 5: 51.7%
On May 4, TD Cowen raised its price target on HF Sinclair Corporation (NYSE:DINO) to $80 from $68 while maintaining a Hold rating on the shares. The firm updated its model after the company’s Q1 results, where renewable diesel performance came in ahead of expectations. Cowen said it is maintaining its segment forecast, though it sees a potential upside scenario that could add $90 million in annual EBITDA. The firm also noted that seasonal trends should support inland refining dynamics in the near term.
On the same day, Barclays analyst Theresa Chen raised the firm’s price target on HF Sinclair to $71 from $61 and kept an Equal Weight rating on the stock following the Q1 report. Chen said the company’s refining operations remain well-positioned to benefit from ongoing supply tightness. Still, the analyst added that demand “will be the main swing factor from here,” according to a research note sent to investors.
HF Sinclair Corporation (NYSE:DINO) is an energy company that produces and markets gasoline, diesel fuel, jet fuel, renewable diesel, and other specialty products. Its business segments include Refining, Renewables, Marketing, Lubricants & Specialties, and Midstream.
8. CF Industries Holdings, Inc. (NYSE:CF)
YTD Returns as of May 5: 53.2%
On April 30, CIBC raised its price recommendation on CF Industries Holdings, Inc. (NYSE:CF) to $128 from $118. It reiterated a Neutral rating on the shares. The firm updated targets across the fertilizer and chemical group as part of its Q1 preview.CIBC said it expects stronger nitrogen pricing because of supply disruptions in the Middle East. It also lowered estimates for Mosaic, noting that phosphate price increases have not kept pace with rising raw material costs.
On April 27, Barclays raised its price goal on CF to $145 from $130. It maintained an Overweight rating on the shares. The firm said it still expects strength in the nitrogen segment because of the Iran conflict. Barclays also raised its estimates for both CF and Nutrien. The firm pointed to continued uncertainty surrounding the Iran war, along with expectations for a longer disruption to natural gas supply and the effect that could have on ammonia production.
CF Industries Holdings, Inc. (NYSE:CF) is a global manufacturer of hydrogen and nitrogen products. The company is working to decarbonize its ammonia production network to support low-carbon hydrogen and nitrogen products used in energy, fertilizer, emissions reduction, and other industrial activities.
7. APA Corporation (NASDAQ:APA)
YTD Returns as of May 5: 53.5%
On April 27, BofA raised its price recommendation on APA Corporation (NASDAQ:APA) to $30 from $27. It reiterated an Underperform rating on the stock. The analyst said the firm is updating its price targets for U.S. oil and gas companies under its coverage. BofA believes the market is positioned for de-escalation, though it still sees a forward outlook shaped by flare-ups and elevated geopolitical risks.
On April 22, Scotiabank raised its price goal on APA to $36 from $26. It kept a Sector Perform rating on the shares. The analyst said the firm is updating its price targets for U.S. integrated oil, refining, and large-cap E&P companies under its coverage. Scotiabank said its view on the sector remains mixed. The firm is generally above consensus earnings estimates for the E&P peer group but below consensus for independent refiners. Looking beyond the current quarter, the firm expects investors to focus on whether the recent turmoil in oil markets could lead to changes in industry activity in 2026 and beyond.
APA Corporation (NASDAQ:APA) is an independent energy company. The company owns subsidiaries that explore for and produce oil and natural gas in the United States, Egypt, and the United Kingdom. It also explores for oil and natural gas offshore Suriname.
6. Caterpillar Inc. (NYSE:CAT)
YTD Returns as of May 5: 53.9%
On May 4, DA Davidson raised its price recommendation on Caterpillar Inc. (NYSE:CAT) to $845 from $650. It reiterated a Neutral rating on the shares following the company’s better-than-expected Q1 results. The analyst said most key metrics came in well above expectations, while management also raised its outlook. According to the firm, Caterpillar is being increasingly driven by data center applications and is now targeting 3x growth in its large engine capacity by 2028, up from its previous 2x target.
On May 5, Argus raised its price goal on CAT to $990 from $820. It kept a Buy rating on the stock. The analyst said Caterpillar has recently benefited from strong growth in data centers, which is driving higher demand for its power generation products, including reciprocating engines, gas turbines, and solar microgrid systems. Argus also noted that Caterpillar has seen solid growth in its oil and gas business, along with increased demand for construction equipment used in building data centers. The firm expects demand in these areas to remain strong through 2026 and over the longer term.
Caterpillar Inc. (NYSE:CAT) manufactures construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. Its business segments include Construction Industries, Resource Industries, and Power & Energy.
While we acknowledge the potential of CAT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CAT and that has 100x upside potential, check out our report about the cheapest AI stock.
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