5 Best Performing Dividend Stocks So Far in 2026

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1. Powell Industries, Inc. (NASDAQ:POWL)

YTD Returns as of May 5: 164.7%

On April 27, JPMorgan analyst Tomohiko Sano initiated coverage of Powell Industries, Inc. (NASDAQ:POWL) with an Overweight rating. It also set a $310 price target, implying about 25% upside from current levels. The analyst said Powell is a leader in custom-engineered electrical distribution, control, and safety equipment, serving customers across the oil and gas, petrochemical, utility, and diversified industrial markets. In a research note, JPMorgan said the company’s $1.6B backlog and exposure to long-term trends such as AI, automation, and electrification could support continued growth.

During the fiscal Q2 2026 earnings call, President and CEO Brett Cope said Powell generated $490 million in new orders during the quarter. He added that the company’s backlog had grown to $1.8 billion, which he believes provides visibility into fiscal 2028. Cope also said that after the quarter ended, Powell Industries secured a first-phase greenfield data center contract valued at more than $400 million.

He described it as the largest project award in the company’s history and said the contract would support a behind-the-meter design for a planned multiphase campus.

Powell Industries, Inc. (NASDAQ:POWL) develops, designs, manufactures, and services custom-engineered equipment and systems used to distribute, control, and monitor the flow of electrical energy. Its products also provide protection for motors, transformers, and other electrically powered equipment.

While we acknowledge the potential of POWL 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 POWL and that has 100x upside potential, check out our report about the cheapest AI stock.

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