In this article, we will take a look at the 5 Best “Dogs of the Dow” Stocks to Buy for the Rest of 2026. For deeper discussion and analysis, read 10 Best “Dogs of the Dow” Stocks to Buy for the Rest of 2026.
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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. (NASDAQ:CSCO) 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 (NYSE:DIS) 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. (NYSE:HD) 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. (NYSE:JPM) 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. (NYSE:JPM) 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 (NYSE:JNJ) 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 (NYSE:JNJ) develops, manufactures, and sells a broad range of healthcare products. The company operates through its Innovative Medicine and MedTech segments.
While we acknowledge the potential of JNJ 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 JNJ and that has 100x upside potential, check out our report about the cheapest AI stock.
READ NEXT: 10 Best Dividend Stocks with 5%+ Yields and Growing Cash Flows and 11 Best Rising Dividend Stocks to Buy Right Now.
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