In this article, we will take a look at some of the best dividend stocks to buy in January.
Valuations have climbed to historically high levels as tech stocks stayed in favor. Bank of America strategist Savita Subramanian said the S&P 500 is showing elevated readings across 18 of the 20 valuation measures she tracks. Those include trailing price-to-earnings, enterprise value to EBITDA, and forward consensus PE.
As those numbers stretched, investors began stepping away from last year’s tech winners and rotating toward more defensive areas. One group that’s benefiting is dividend-paying stocks, where income and durability matter.
This split builds on a familiar pattern. Tech is slipping back into its traditional role as a growth sector. Defensive corners of the market— health care, utilities, and makers of everyday household products— are moving back into favor. Christopher Cain, Bloomberg Intelligence’s US quantitative equity strategist, made the following comment in this regard:
“It’s common for investors to favor dividend-paying stocks when overall market valuations look stretched. These stocks often trade at lower valuations, and the steady cash flows can help cushion volatility.”
Dividend stocks often stand out on quality. Earnings tend to be steadier, and balance sheets usually carry less leverage. When a company raises its dividend year after year, sometimes over decades, it often signals financial strength and discipline that shows up over a full cycle.
Over the long run, dividend growers have also delivered stronger results with less volatility. An analysis from T. Rowe Price found that dividend growth stocks in the Russell 1000 Index produced an annualized return of 11.3% from the end of 1985 through 2019. That compares with 10.8% for dividend payers and 10.5% for the index as a whole.
Companies that paired high dividend yields with strong dividend growth did even better, significantly outperforming the broader group of dividend-paying stocks over that same period.
Given this, we will take a look at some of the best dividend stocks to buy in January.
Our Methodology:
For this list, we selected dividend stocks that will trade ex-dividend in January 2026. The ex-dividend date indicates the cutoff day to buy a stock to receive its upcoming dividend payment. The stocks are ranked according to their ex-dividend dates.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
13. JPMorgan Chase & Co. (NYSE:JPM)
Ex-Dividend Date: January 6
Dividend Yield as of January 5: 1.80%
JPMorgan Chase & Co. (NYSE:JPM) is among the best dividend stocks to invest in.
On January 5, Barclays raised its price target on JPMorgan Chase & Co. (NYSE: JPM) to $391 from $342 and maintained an Overweight rating on the stock. The move came as part of the firm’s broader 2026 outlook for large-cap banks. Barclays sees the same forces that drove double-digit earnings growth and bank stock outperformance in 2025 continuing into next year.
That same day, JPMorgan Chase & Co. (NYSE: JPM) announced the launch of a new advisory unit targeting a select group of clients. The goal is to expand access to expertise beyond traditional dealmaking and financing. The investment advisory services market is expected to grow in 2026, driven by rising technology adoption, geopolitical shifts, and ongoing macro uncertainty. These dynamics are pushing companies to seek more specialized insight into trends that can move markets.
The new Special Advisory Services unit will advise clients on themes such as artificial intelligence, cybersecurity, digital assets, geopolitics, healthcare, supply chains, and sustainability. The bank said the unit will be led by global chair of investment banking Liz Myers. Myers brings more than 30 years of experience at J.P. Morgan and previously ran its global equity capital markets business.
JPMorgan Chase & Co. (NYSE:JPM) noted that the group will focus on long-standing, top-tier relationships. This includes companies seeking a lead adviser for initial public offerings, established clients pursuing transformational transactions, and mid-sized firms looking to make J.P. Morgan their primary banking partner.
JPMorgan Chase & Co. (NYSE:JPM) operates as a financial holding company, with businesses spanning investment banking and financial services for consumers and small businesses.
12. Edison International (NYSE:EIX)
Ex-Dividend Date: January 7
Dividend Yield as of January 5: 5.79%
Edison International (NYSE:EIX) is among the best dividend stocks to invest in.
On December 17, Morgan Stanley analyst David Arcaro lowered the firm’s price target on Edison International (NYSE:EIX) to $57 from $59 and kept an Underweight rating on the stock. The change came as part of a broader update to price targets across Regulated and Diversified Utilities and IPPs in North America under the firm’s November review. While the firm sees Edison International’s overall risk profile moving in the right direction, it believes wildfire exposure remains elevated.
A few days earlier, on December 11, Edison International (NYSE:EIX) declared a quarterly common stock dividend of $0.8775 per share. The dividend is payable on Jan. 31, 2026, to shareholders of record as of Jan. 7, 2026. With this increase, the annual dividend rises to $3.51 per share, up 6% from the prior annual rate of $3.31.
Pedro Pizarro, president and CEO of Edison International, made the following comment:
“Today’s dividend increase reflects the confidence of our board and management in Edison International’s financial strength and outlook. It underscores management’s commitment to delivering on our long-term EPS growth target of 5% to 7%. Further, this marks our 22nd consecutive year of dividend growth.”
Edison International (NYSE:EIX) operates as an electric utility holding company. Its business centers on delivering clean, reliable energy and related services through its independent operating companies.
11. Marvell Technology, Inc. (NASDAQ:MRVL)
Ex-Dividend Date: January 9
Dividend Yield as of January 5: 0.27%
Marvell Technology, Inc. (NASDAQ:MRVL) is among the best dividend stocks to invest in.
On January 5, Melius Research upgraded Marvell Technology, Inc. (NASDAQ:MRVL) to Buy from Hold and set a $135 price target. The analyst noted that the stock is down about 11% from its recent intraday high. From their perspective, Marvell’s backlog in custom silicon continues to build. Revenue from this segment is expected to double in calendar year 2027, driven by Microsoft’s MAIA chip and the ramp of several XPU-attach sockets. The analyst also pointed out that Microsoft’s internal silicon design capabilities still lag those of AWS’s Annapurna Labs. That gap could leave room for a larger share of profits to flow to external custom silicon providers such as Marvell Technology.
Marvell Technology, Inc. (NASDAQ:MRVL) has been benefiting from fast-growing demand for AI-focused application-specific integrated circuits used in data centers. These ASICs are designed to handle AI workloads more efficiently, offering higher speeds and better power efficiency than general-purpose chips like GPUs.
As a result, hyperscalers and AI-focused companies are increasingly turning to ASIC designers to build in-house chips. Demand has picked up sharply. According to TrendForce, ASIC shipments are expected to grow 45% in 2026, compared with an estimated 16% increase in GPU shipments. That trend places Marvell in a strong position going into 2026. The company counts major customers such as Alphabet, Amazon, and Microsoft among its client base.
Marvell Technology, Inc. (NASDAQ:MRVL), along with its subsidiaries, supplies data infrastructure semiconductor solutions across the data center core and out to the network edge.
10. BankUnited, Inc. (NYSE:BKU)
Ex-Dividend Date: January 9
Dividend Yield as of January 5: 2.74%
BankUnited, Inc. (NYSE:BKU) is among the best dividend stocks to invest in.
On January 5, Wells Fargo raised its price target on BankUnited, Inc. (NYSE:BKU) to $50 from $42 and kept an Overweight rating on the shares. The firm said regional banks are positioned to narrow their valuation gap with the largest banks in 2026. Q2 is seen as the next likely earnings catalyst. In the meantime, Wells expects a brief EPS air pocket through Q1 2026, driven by rate cuts, slower loan growth, and normal expense seasonality.
In the most recent quarter, net income increased to $71.9 million, or $0.95 per share. Net interest margin expanded to a clean 3.00%, up from 2.93% in the prior quarter. For the first nine months of the year, earnings reached $199.1 million, marking a 22% increase year over year. Deposits were largely flat during the period, while funding costs moved lower.
That mix fits well with a portfolio approach focused on traditional banks. The emphasis is on scale, steady balance sheets, and improving profitability rather than speculative growth stories. BankUnited, Inc. (NYSE:BKU) also stands out in capital strength. It ended the quarter with a 12.5% CET1 ratio, and tangible book value rose 8% year over year to $39.27 per share.
BankUnited, Inc. (NYSE:BKU) operates as a regional banking institution with a strong presence in Florida and the New York metropolitan area. The company relies on a diversified loan portfolio and a solid deposit base to support stable earnings and maintain a competitive position among regional peers.
9. Darden Restaurants, Inc. (NYSE:DRI)
Ex-Dividend Date: January 9
Dividend Yield as of January 5: 3.11%
Darden Restaurants, Inc. (NYSE:DRI) is one of the best dividend stocks to buy in January.
On December 22, Mizuho analyst Nick Setyan raised the firm’s price target on Darden Restaurants, Inc. (NYSE:DRI) to $195 from $185 and kept a Neutral rating on the shares. The firm updated its estimates after the company released earnings. Darden delivered some upside in same-store sales growth during fiscal Q2. That strength didn’t fully offset higher-than-expected commodity inflation, the analyst wrote in a research note.
Earlier in December, Darden Restaurants, Inc. (NYSE:DRI) lifted its full-year sales outlook. Management pointed to steady demand across its brands, including Olive Garden, where affordable pricing continues to attract cost-conscious diners.
Darden, which operates full-service concepts such as Ruth’s Chris Steak House, Cheddar’s Scratch Kitchen, and Yard House, has chosen to absorb tariff-related cost pressures rather than raise menu prices. That decision reflects how selective consumers remain when it comes to dining out. The company now expects same-restaurant sales growth of 3.5% to 4.3% in fiscal 2026, up from its earlier forecast of 2.5% to 3.5%. During the earnings call, executives said Darden is taking market share from both casual-dining peers and limited-service restaurants. “The consumer remains resilient but cautious amid weaker sentiment,” CEO Rick Cardenas said, pointing to some pullback among lower-income diners.
Darden reaffirmed its annual EPS outlook of $10.50 to $10.70 and noted that beef prices are likely to pressure margins in the third quarter. Same-store sales at Olive Garden increased 4.7% during the quarter. LongHorn Steakhouse posted a 5.9% gain, driven by menu updates and value-focused promotions aimed at middle-income customers.
Darden Restaurants, Inc. (NYSE:DRI) owns and operates full-service restaurants across the United States and Canada.
8. Mastercard Incorporated (NYSE:MA)
Ex-Dividend Date: January 9
Dividend Yield as of January 5: 0.61%
Mastercard Incorporated (NYSE:MA) is among the best dividend stocks to invest in.
On December 25, Freedom Capital analyst Mikhail Paramonov raised the firm’s price target on Mastercard Incorporated (NYSE:MA) to $655 from $635 and kept a Hold rating on the shares. The change followed what the firm described as “strong” Q4 results. In a research note, Paramonov said Mastercard continues to deliver faster growth than Visa (V), even though it operates at a smaller scale.
One clear tailwind remains the steady expansion of e-commerce. Online purchases rely heavily on digital payment options such as credit and debit cards. That shift continues to benefit Mastercard, as both merchants and consumers lean into the convenience and cost efficiencies of online transactions. The trend shows little sign of slowing.
Early data from Mastercard SpendingPulse™ points to healthy consumer activity during the holiday period. US retail sales excluding autos rose 3.9% year over year between November 1 and December 21. The data captures both in-store and online spending across all payment types and is not adjusted for inflation. Shoppers were not just chasing discounts. Many moved fluidly between online browsing and physical stores to find better deals and save time. E-commerce sales jumped 7.4% during the period, while in-store sales increased 2.9%. The numbers highlight how blended shopping has become the norm.
Mastercard SpendingPulse tracks national retail sales using aggregated and anonymized data, reflecting all forms of payment across select global markets.
Mastercard Incorporated (NYSE:MA) is a technology company in the global payments space. It connects consumers, financial institutions, merchants, and governments through its payments network.
7. RPM International Inc. (NYSE:RPM)
Ex-Dividend Date: January 16
Dividend Yield as of January 5: 2.04%
RPM International Inc. (NYSE:RPM) is among the best dividend stocks to invest in.
On December 18, UBS lowered its price target on RPM International Inc. (NYSE:RPM) to $119 from $127 and kept a Neutral rating on the shares.
Mizuho also trimmed its target, cutting it to $128 from $138, while maintaining an Outperform rating as part of its 2026 outlook for the chemicals, agriculture, and packaging sector. In a research note, the firm said rising exports from China are putting pressure on most basic chemical markets. Mizuho expects the March quarter to open on a soft footing, much like how the December quarter closed for many companies.
On January 2, RPM International Inc. (NYSE:RPM) said its board approved a regular quarterly cash dividend of $0.54 per share. The dividend will be paid on January 30, 2026, to shareholders on record as of January 16, 2026.
That payout follows RPM’s most recent dividend increase in October 2025, when the company raised its cash dividend by 6%. The move marked its 52nd straight year of dividend growth, placing RPM among a very small group of US public companies with such a long record. Over that period, the company has returned about $3.8 billion in cash dividends to shareholders.
RPM International Inc. (NYSE:RPM) owns and operates subsidiaries focused on coatings, sealants, building materials, and related services. Its operations are organized across the Construction Products Group, Performance Coatings Group, and Consumer segments.
6. Alamo Group Inc. (NYSE:ALG)
Ex-Dividend Date: January 16
Dividend Yield as of January 5: 0.66%
Alamo Group Inc. (NYSE:ALG) is among the best dividend stocks to invest in.
On December 10, Alamo Group Inc. (NYSE:ALG) said it reached a definitive agreement to acquire Petersen Industries, Inc., a recognized maker of truck-mounted grapple loader equipment. The deal places a $166.5 million value on Petersen, subject to customary post-closing adjustments.
The acquisition will be financed using a combination of cash on hand and capacity under Alamo Group’s credit facility. After adjusting for the present value of expected tax benefits, the effective purchase price comes in at about $150 million. That works out to roughly 7.9x EBITDA, before factoring in any potential run-rate synergies.
Once the deal closes, Petersen will be folded into Alamo Group’s Industrial Equipment Division. The company expects the transaction to close in the first quarter of 2026, assuming regulatory approvals and standard closing conditions are met. Management sees the acquisition as a way to support long-term growth, improve margins, and add recurring revenue tied to Petersen’s aftermarket parts and service business. D.A. Davidson & Co. served as financial advisor, while Dykema Gossett PLLC acted as legal counsel to Alamo Group.
Petersen is known as a market leader in grapple truck loaders, with a customer base that leans heavily toward government agencies handling bulky waste collection. The company has been operating for more than 65 years and has built its name around product innovation and equipment designed for tough, real-world use.
Alamo Group Inc. (NYSE:ALG) is a global manufacturer of industrial and vegetation management equipment. Its products are used across public and private infrastructure maintenance, along with land management operations around the world.
5. Colgate-Palmolive Company (NYSE:CL)
Ex-Dividend Date: January 21
Dividend Yield as of January 5: 2.70%
Colgate-Palmolive Company (NYSE:CL) is among the best dividend stocks to invest in.
On December 18, JPMorgan raised its price target on Colgate-Palmolive Company (NYSE:CL) to $88 from $87 and kept an Overweight rating as part of its 2026 outlook. The firm said the setup heading into 2026 for beverages, household, and personal care remains difficult. JPMorgan still expects results to improve as “many headwinds from 2025 are lapped.” Those pressures include strain on low-income and Hispanic consumers and the impact of tariffs. The analyst also pointed to possible support for consumption and margins from lower tariffs and more favorable currency moves for multinational companies.
Colgate-Palmolive Company (NYSE:CL) belongs to a very small group known as the “Dividend Kings,” companies that have increased their dividends for at least 50 consecutive years. Colgate has raised its dividend for 63 straight years. Its focus on everyday essentials gives it some insulation in an uncertain economy. The company also aims to protect its market position and take share through higher investment in research and innovation, increased marketing behind core brands, and quicker responses to shifting consumer preferences.
Colgate has taken steps to manage higher raw material costs by raising prices, using tighter revenue management, and improving operating efficiency. There is also potential upside from Hill’s, its pet nutrition business. Pet adoption surged during the pandemic, and that trend could support demand longer than many expected.
Colgate-Palmolive Company (NYSE:CL) produces and sells a wide range of household, health care, personal care, and veterinary products.
4. Pfizer Inc. (NYSE:PFE)
Ex-Dividend Date: January 23
Dividend Yield as of January 5: 6.83%
Pfizer Inc. (NYSE:PFE) is one of the best dividend stocks to invest in.
Pfizer is among the drugmakers planning to raise prices on some medicines starting January 1. The increases will affect about 350 drugs, even as President Donald Trump has reached agreements with 14 pharmaceutical companies to lower prices on certain treatments for the government’s Medicaid program and for cash-paying patients.
Pfizer Inc. (NYSE:PFE) announced the largest number of list price hikes, covering roughly 80 medicines. The list includes the cancer drug Ibrance, the migraine treatment Nurtec, and the COVID therapy Paxlovid. Some hospital-administered drugs, such as morphine and hydromorphone, are also included.
Most of Pfizer’s price increases are under 10%. One exception is a 15% hike for the COVID vaccine Comirnaty. A few lower-priced hospital drugs are seeing much steeper moves, with prices rising more than four times. Pfizer said it adjusted the average list price of its innovative medicines and vaccines for 2026 to remain below the overall rate of inflation. The company made the following remark:
“The modest increase is necessary to support investments that allow us to continue to discover and deliver new medicines as well as address increased costs throughout our business.”
According to a report by Reuters, drugmakers plan to raise U.S. prices on at least 350 branded medicines. The list includes vaccines for COVID, RSV, and shingles, along with major cancer drugs such as Ibrance. The data was provided exclusively by healthcare research firm 3 Axis Advisors, even as pressure from the Trump administration continues.
The number of planned price increases for 2026 is higher than at the same point last year, when companies outlined hikes for more than 250 drugs. This year’s median increase sits around 4%, in line with 2025 levels.
Pfizer Inc. (NYSE:PFE) is a research-driven biopharmaceutical company with operations around the world. It focuses on discovering, developing, manufacturing, and marketing medicines and vaccines across a wide range of therapeutic areas.
3. Conagra Brands, Inc. (NYSE:CAG)
Ex-Dividend Date: January 27
Dividend Yield as of January 5: 8.20%
Conagra Brands, Inc. (NYSE:CAG) is one of the best dividend stocks to invest in.
On January 5, Wells Fargo lowered its price target on Conagra Brands, Inc. (NYSE:CAG) to $18 from $19 and kept an Equal Weight rating. The move came as the firm updated models across the Beverage, Food, and HPC space heading into 2026.
Earlier in December, Conagra Brands, Inc. (NYSE:CAG) said it was holding its full-year sales and profit targets steady after a subdued second quarter. The company continues to deal with uneven demand for pantry staples, pressured consumer spending, and intense competition. The quarter also included a swing to a loss, driven by a $968 million non-cash impairment tied to a prolonged decline in the company’s share price.
Conagra shares fell nearly 38% in 2025 as supply chain disruptions, higher input costs, and softer demand weighed on results. Shoppers have been trading down, and that trend has been hard to offset. Shifts in consumer preferences toward healthier food, tied in part to the “Make America Healthy Again” movement, add another layer of risk. Wider use of GLP-1 weight-loss drugs could also pressure demand for packaged foods. Even so, Conagra’s valuation looks inexpensive with sentiment across the sector still weak, according to RBC Capital Markets analyst Nik Modi.
For the quarter, Conagra Brands, Inc. (NYSE:CAG) reported a net loss of $663.6 million, compared with a profit of $284.5 million a year earlier. On an adjusted basis, earnings came in at $0.45 per share, beating estimates by $0.01.The company is not pursuing acquisitions and is instead focused on improving cash flow and reducing debt, CEO Sean Connolly told Reuters.
Conagra Brands, Inc. (NYSE:CAG) operates across Grocery & Snacks, Refrigerated & Frozen, International, and Foodservice, with a portfolio built around well-known consumer brands.
2. Casey’s General Stores, Inc. (NASDAQ:CASY)
Ex-Dividend Date: January 30
Dividend Yield as of January 5: 0.40%
Casey’s General Stores, Inc. (NASDAQ:CASY) is among the best dividend stocks to invest in.
On January 5, Wells Fargo analyst Edward Kelly added Casey’s General Stores, Inc. (NASDAQ:CASY) to the firm’s Q1 2026 Tactical Ideas list.
Wells sees an attractive setup heading into early 2026. Near-term EPS looks positioned to beat expectations as the company reinforces its multi-year growth story, helped by the rollout of wings. Fiscal stimulus could provide added support. The firm said the stock is not cheap, but views Casey’s as a premium growth name with room to keep running. Wells maintains an Overweight rating and a $625 price target.
Earlier, on December 11, Goldman Sachs raised its price target on Casey’s General Stores, Inc. (NASDAQ:CASY) to $530 from $490 and kept a Neutral rating. The firm pointed to a strong Q2 EPS performance that came in ahead of both its own estimates and consensus. Results reflected better-than-expected fuel margins and solid execution on inside margins. The analyst said Casey’s continues to execute well on its growth strategy while using its scale to balance volume growth and profitability.
Casey’s General Stores, Inc. (NASDAQ:CASY) operates about 2,900 convenience stores across 19 states. The stores offer self-service fuel, grocery items, and a range of freshly prepared food options.
1. Virtus Investment Partners, Inc. (NYSE:VRTS)
Ex-Dividend Date: January 30
Dividend Yield as of January 5: 5.73%
Virtus Investment Partners, Inc. (NYSE:VRTS) is among the best dividend stocks.
On December 23, Piper Sandler analyst Crispin Love lowered his price target on Virtus Investment Partners, Inc. (NYSE:VRTS) to $218 from $225 and kept an Overweight rating. The call came as part of Piper’s Q4 preview for the asset management group.
Deal activity has started to pick up. At the same time, private credit has taken over the conversation, with investors focused on the risk of rising defaults. Love said those fears look overdone. He pointed to fundamentals he described as “solid,” with loan-to-value ratios in the 30%–40% range, which he said offer “substantial cushion against losses.”
Earlier, on December 5, Virtus Investment Partners, Inc. (NYSE:VRTS) said it reached a definitive agreement to acquire a majority stake in Keystone National Group. Keystone specializes in asset-centric private credit and was an early mover in bringing those strategies to the wealth channel. The deal expands Virtus’ footprint in private markets and adds an asset-backed lending platform to its lineup.
Under the agreement, Virtus will pay $200 million at closing, with up to $170 million more in deferred consideration. That includes earnout payments tied to future revenue targets. The company plans to fund the transaction using existing balance sheet resources. George R. Aylward, president and chief executive officer of Virtus, made the following comment:
“Partnering with Keystone allows us to offer strategies of an innovative asset-centric private credit manager that has delivered attractive, uncorrelated returns to meet the needs of clients who are increasingly looking for alternative sources of income as well as to diversify their private credit exposure beyond direct lending. John Earl and Brandon Nielson, Keystone’s co-founders, and their team have built a high quality, client-focused business and we welcome them to our family of investment managers.”
Keystone’s management team will keep a meaningful equity stake, and its managing partners will sign long-term employment agreements. As part of Virtus, Keystone will continue to run its own investment process and daily operations, while maintaining its culture and brand.
The transaction is expected to close in the first quarter of 2026. RBC Capital Markets served as financial advisor to Virtus, with Goodwin Procter LLP acting as legal counsel. BofA Securities advised Keystone, alongside legal counsel Willkie Farr & Gallagher LLP.
Virtus Investment Partners, Inc. (NYSE:VRTS) provides investment management and related services to both institutional and individual clients. Its strategies span multiple asset classes and are distributed across a range of channels.
While we acknowledge the potential of VRTS to grow, 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 VRTS and that has 100x upside potential, check out our report about this cheapest AI stock.
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