In this article, we will take a look at the Dividend Contenders List: Top 20 Stocks.
Dividend contenders are companies that have raised their dividends every year for at least a decade, but have not yet reached 25 straight years of growth. Investors often pay attention to this group for a simple reason. These companies have shown they can keep increasing payouts through different market environments. For investors who rely on income, that kind of consistency tends to matter.
Nuveen chief investment officer Saira Malik wrote recently that market volatility is likely to remain part of the landscape. She pointed to uncertainty tied to macro conditions, geopolitics, policy changes, and shifting sentiment around “artificial intelligence.” These forces do not move in a straight line, and markets often react before clarity sets in.
Malik said investors could face more turbulence in 2026. Dividend growth companies can help smooth out those periods. There is no guaranteed way to avoid market setbacks, she noted, but history shows that companies with a record of raising dividends have delivered higher returns with lower risk than many of their peers. Dividends and their growth are not guaranteed, but their predictability can help steady portfolios when markets become unsettled.
The data points in that direction. U.S. common dividend increases on a net basis reached $13.1 billion in the fourth quarter of 2025, up from $11.7 billion a year earlier, according to a report by S&P Dow Jones Indices.
Looking ahead, growth in payouts is expected to continue, though at a measured pace. Companies are projected to deliver mid-single-digit dividend increases in the new year. Howard Silverblatt, senior index analyst at S&P Dow Jones Indices, said companies are making these decisions while dealing with ongoing uncertainty and a fast-changing policy backdrop, which continues to shape how they approach dividends.
Given this, we will take a look at some high-yield stocks in the dividend contenders list.
Photo by Sharon McCutcheon on Unsplash
Our Methodology:
For this list, we looked at a group of dividend contenders, recognized for consistently increasing dividends for 10 consecutive years, yet for less than 25 years. From this list, we chose companies with the highest dividend yields as of January 22 and arranged them in order from lowest to highest yield.
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).
20. Analog Devices, Inc. (NASDAQ:ADI)
Dividend Yield as of January 22: 1.30%
On January 21, BofA raised its price target on Analog Devices, Inc. (NASDAQ:ADI) to $350 from $320, while maintaining a Buy rating on the stock. The move came alongside a broader update to the bank’s diversified analog semiconductor coverage, with higher targets across most of the group.
BofA said it expects modest Q4 earnings beats and stronger Q1 guidance from many names in the space. In the bank’s view, industrial-focused chipmakers could be the ones to lead the next leg higher, supported by improving demand in several end markets, steady pricing, and continued strength tied to AI-related buildouts.
Analog Devices has also been putting more weight behind innovation over the past few years. The company has been investing consistently in R&D to keep pace with customer needs across industrial, automotive, communications, and consumer markets, while protecting its technology advantage. That approach is centered on staying close to customers, keeping product development on track, and aligning its portfolio with longer-term themes such as factory digitization and the ongoing expansion of AI infrastructure.
Analog Devices, Inc. (NASDAQ:ADI) is a global semiconductor company that designs and sells integrated circuits, software, and subsystem solutions using high-performance analog, mixed-signal, and digital signal processing technologies.
19. BlackRock, Inc. (NYSE:BLK)
Dividend Yield as of January 22: 2.03%
On January 16, BofA raised its price target on BlackRock, Inc. (NYSE:BLK) to $1,467 from $1,431 and maintained a Buy rating on the stock. After reviewing the company’s quarterly results, the firm also increased its EPS estimates for 2025, 2026, 2027, and 2028. BofA said the higher outlook mainly reflects stronger management and performance fee expectations, though it also noted some pressure from a lower operating margin.
BlackRock’s fourth-quarter profit came in above Wall Street estimates on January 15, helped by the broader market rally. Higher asset prices lifted fee revenue and pushed the firm’s assets under management to a record $14 trillion. US stocks rallied last year as enthusiasm around AI picked up, interest rates eased, and economic conditions stayed relatively steady. That backdrop encouraged investors to shift money back into lower-cost index strategies. At the same time, cooling inflation and a softer job market led the Federal Reserve to take a more dovish tone, which supported strong inflows into BlackRock’s fixed-income products.
During the quarter, equity product inflows totaled $126.05 billion, slightly lower than a year earlier. Fixed-income products brought in $83.77 billion. Long-term net inflows reached about $267.8 billion, driven largely by continued momentum in the firm’s ETF business, which remains its key engine of organic growth. BlackRock also posted a record $698.3 billion in net inflows for the full year.
Performance fees climbed 67% to $754 million in the quarter, reflecting stronger results in private markets.
BlackRock, Inc. (NYSE:BLK) is a global investment management firm that provides investment and technology services to both institutional and retail clients.
18. Lockheed Martin Corporation (NYSE:LMT)
Dividend Yield as of January 22: 2.35%
On January 15, Susquehanna lifted its price target on Lockheed Martin Corporation (NYSE:LMT) to $660 from $590, while keeping a Positive rating on the shares. The change was part of the firm’s Q4 preview for the aerospace and defense space.
Susquehanna said conditions across the industry still look “quite favorable.” It pointed to strength in commercial aerospace, steady defense spending, and healthy aftermarket demand. In the firm’s view, the most important parts of the market continue to hold up well over the medium term, which is why it pushed valuation targets higher across the group.
Recent delivery data also supports the idea that Lockheed has momentum. Reuters reported on January 8 that Lockheed delivered 191 F-35 fighter jets in 2025 to the US and partner nations, setting a new annual record for the program. Lockheed said in a statement that “Annual F-35 production is now running at a pace five times faster than any other allied fighter currently in production.”
That kind of output matters because the F-35 remains one of Lockheed’s biggest profit engines. The company delivered 110 jets in 2024, and the program is now responsible for roughly one-third of total revenue. With many countries raising defense budgets as geopolitical tensions rise, demand has remained steady for large, long-cycle platforms like the F-35.
Lockheed is also scaling up production on the missile defense side. Reuters reported earlier in January that the company signed a seven-year agreement with the U.S. Department of War to expand annual PAC-3 missile interceptor capacity to 2,000 units, up from around 600 previously.
Interest in PAC-3 (Patriot Advanced Capability) interceptors has been climbing as the U.S. and its allies spend more heavily on air defense systems.
Lockheed Martin Corporation (NYSE:LMT) is a global security and aerospace company that develops and manufactures advanced defense technologies and provides long-term system integration and support services.
17. The Home Depot, Inc. (NYSE:HD)
Dividend Yield as of January 22: 2.39%
On January 20, TD Cowen analyst Max Rakhlenko raised the firm’s price target on The Home Depot, Inc. (NYSE:HD) to $450 from $410 and maintained a Buy rating on the stock. The update came as TD Cowen adjusted price targets across the hardlines group. Within that coverage list, the firm’s top idea is Planet Fitness, followed by Home Depot and O’Reilly Automotive.
A CNBC report highlighted how Home Depot is using AI tools to appeal more directly to professional contractors. Timothy Ellsberry, an Atlanta-based custom homebuilder, told CNBC he was impressed with the company’s recent efforts. Ellsberry joined Home Depot’s Pro program in late 2024 and stated that he has been reviewing the company’s expanding suite of digital tools, although he has not yet fully adopted them.
One of the newer offerings is AI-powered BluePrint Takeoffs, which launched in November. The tool is designed to quickly produce takeoffs, meaning full lists of materials and resources needed to build project quotes. It also lets contractors purchase those items directly through Home Depot, keeping the workflow in one place.
CNBC also pointed to a longer-term benefit from Home Depot’s 2024 acquisition of SRS Distribution. The trade credit system gained through the deal is seen as an underappreciated advantage, helping Home Depot reach more contractors. Trade credit allows contractors to buy supplies and pay later, which can improve cash flow for growing businesses. Home Depot says combining that credit offering with AI tools like BluePrint Takeoffs could make it easier for professionals to scale their operations.
The Home Depot, Inc. (NYSE:HD) is a home improvement specialty retailer that sells building materials, home improvement products, lawn and garden items, décor, and maintenance, repair, and operations supplies through both stores and online channels.
16. UnitedHealth Group Incorporated (NYSE:UNH)
Dividend Yield as of January 22: 2.54%
On January 21, Baird analyst Michael Ha said UnitedHealth Group Incorporated (NYSE:UNH)’s decision to rebate profits from its Affordable Care Act business back to customers this year could be a “potentially masterful move.” In a note to investors, Ha explained that the ACA exchange business is not a meaningful earnings driver for UnitedHealth, so returning those profits is not expected to have a material impact on UNH’s 2026 results.
Baird’s view is that the bigger impact could be strategic. If UnitedHealth’s announcement encourages the government to push broader profit rebate rules for health exchange plans, the analyst believes this could act as a “masterful chess move” by putting pressure on competitors that depend far more heavily on ACA exchange profitability in 2026. Baird specifically pointed to potential risk for Centene (CNC), Molina Healthcare (MOH), and Oscar Health (OSCR) if regulators adopt some form of rebate requirement or clawback mechanism.
UnitedHealth said it will provide rebates to its Obamacare plan members in 2026, according to prepared testimony from CEO Stephen Hemsley released on January 21. A company spokesperson added that UnitedHealth is working with the Trump administration on the details of how the rebates will be structured.
The testimony was published by the House health subcommittee ahead of a hearing where executives from rival insurers, including Cigna Group, CVS Health, and Elevance, are scheduled to speak.
For the 2026 plan year, UnitedHealthcare is offering ACA marketplace plans in 30 states. The company has also signaled it expects ACA enrollment to decline sharply, with management previously estimating enrollment could fall by about two-thirds.
UnitedHealth Group Incorporated (NYSE:UNH) is a large, diversified global healthcare company with two main segments. UnitedHealthcare provides health insurance coverage and benefits, while Optum focuses on technology-driven health services, pharmacy benefits, and care delivery.
15. The PNC Financial Services Group, Inc. (NYSE:PNC)
Dividend Yield as of January 22: 3.02%
On January 20, Oppenheimer raised its price target on The PNC Financial Services Group, Inc. (NYSE:PNC) to $284 from $268 and kept an Outperform rating on the shares. The firm said PNC ended 2025 on a strong note, and management pointed to several organic tailwinds it expects to carry into 2026. Oppenheimer also highlighted the added boost from PNC’s January acquisition of FirstBank. The firm reiterated that it continues to favor commercial banks over investment banks.
PNC’s fourth-quarter profit also came in above analysts’ expectations, helped by improving conditions in capital markets. The rebound in dealmaking supported results and helped push the stock to a four-year high.
Deal activity picked up sharply across the market in 2025. Global M&A climbed past $5 trillion for the year, marking the second-biggest year on record. Looser US antitrust scrutiny and strong equity markets helped drive a wave of large transactions.PNC benefited from that shift. Its quarterly capital markets and advisory revenue jumped 41% to $489 million, supported by stronger M&A activity. During the quarter, PNC’s Harris Williams advised TRC, a Warburg Pincus portfolio company, on its $3.3 billion sale to Canadian engineering firm WSP Global.
The bank also posted stronger net interest income. NII, which reflects the spread between what PNC earns on loans and pays on deposits, rose 6% to a record $3.73 billion. Loan growth and lower deposit costs helped support the increase, and the bank has also been benefiting from the repricing of fixed-rate assets.
Analysts described PNC’s results as solid, pointing to strong momentum in capital markets and expectations for faster share buybacks.
The PNC Financial Services Group, Inc. (NYSE:PNC) is a diversified US financial services company.
14. Merck & Co., Inc. (NYSE:MRK)
Dividend Yield as of January 22: 3.06%
Reuters reported that Merck & Co., Inc. (NYSE:MRK)’s MSD unit and the Coalition for Epidemic Preparedness Innovations (CEPI) said on January 21 that they are launching a $30 million program to create an updated version of Merck’s Ebola vaccine. The idea is to make the vaccine cheaper and easier to deliver in low- and middle-income countries, where cost and logistics often decide whether people actually get access.
CEPI said the partnership will focus on improving the manufacturing process for Merck’s WHO-prequalified Ebola vaccine, Ervebo. The current production process is not simple. CEPI noted that it is complex, which makes the vaccine expensive and difficult to manufacture at scale.
That matters because even when a vaccine exists, scaling it up quickly is usually the hard part.CEPI said the planned upgrades should increase yield and extend shelf life. The organization added that these changes could also allow Ervebo to be stored in a standard refrigerator for several months. For many public health systems, that is a big deal since it reduces dependence on specialized storage and makes distribution more realistic.
MSD will work with Hilleman Laboratories on the development of the updated vaccine. MSD also said it will explore options to supply public-sector buyers in low- and middle-income countries at a significantly lower price than the current vaccine. CEPI said its funding will support Hilleman’s clinical development work.
Separately, Reuters also reported that Merck raised its outlook for new growth drivers. The company is now forecasting $70 billion in revenue from these newer businesses by the mid-2030s, as it accelerates the launch of additional drugs ahead of looming competition to its blockbuster cancer therapy Keytruda.
Merck & Co., Inc. (NYSE:MRK) now expects cardiometabolic and respiratory treatments to generate about $20 billion in sales, up from its previous forecast of $15 billion. Infectious disease drugs are projected to contribute roughly $15 billion, compared with an earlier estimate of $5 billion.
Merck & Co., Inc. (NYSE:MRK) is a global healthcare giant focused on discovering, developing, manufacturing, and marketing prescription medicines, vaccines, biologic therapies, and animal health products to save and improve lives.
13. American Electric Power Company, Inc. (NASDAQ:AEP)
Dividend Yield as of January 22: 3.19%
On January 21, Morgan Stanley raised its price target on American Electric Power Company, Inc. (NASDAQ:AEP) to $125 from $120. It maintained an Overweight rating on the stock. The firm said it is updating its view on Regulated & Diversified Utilities and IPPs across North America. In its note, Morgan Stanley pointed out that utilities lagged the S&P’s return in December, even as the broader market pushed higher.
Separately, Reuters reported on January 8 that AEP said one of its units will purchase a substantial portion of its option for solid oxide fuel cells in a deal valued at about $2.65 billion. The move ties into the company’s plan to develop and build a fuel cell power generation facility.
AEP originally signed an agreement with Bloom Energy in 2024 to acquire 100 megawatts of solid oxide fuel cells, along with an option to purchase an additional 900 MW. Earlier this week, AEP’s unit exercised that option, according to a regulatory filing.
The company also said it has secured a long-term offtake arrangement. AEP signed a 20-year deal with an unnamed customer that will take the full output of the fuel cell facility, which is planned near Cheyenne, Wyoming. The offtake agreement still depends on certain conditions being met, which AEP expects to happen by Q2 2026. If those conditions are not satisfied, AEP said it would receive financial compensation covering the capital and costs it incurs.
American Electric Power Company, Inc. (NASDAQ:AEP) is an electric utility holding company. Through its operating utilities, it provides generation, transmission, and distribution services to more than five million retail customers across Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, Tennessee, Texas, Virginia, and West Virginia.
12. Manulife Financial Corporation (NYSE:MFC)
Dividend Yield as of January 22: 3.38%
On January 8, CIBC upgraded Manulife Financial Corporation (NYSE:MFC) to Outperformer from Neutral and lifted its price target to C$58 from C$50. The call reflects steady progress toward medium-term goals, room for upside versus current consensus estimates, and the possibility that the stock could trade at a higher multiple over time.
Manulife’s core life insurance business continues to hold up well. Results have strengthened over recent quarters, helped by higher yields on longer-duration assets. As with other insurers, the company needs to align long-term liabilities with assets that generate cash flows over extended periods, such as bonds. In that context, lower yields, or even expectations that long-term rates may ease, have actually supported the outlook by improving asset-liability matching.
Beyond that, the wealth management arm is gaining momentum. Much of this growth is coming from Asia, where Manulife has been investing heavily, and that expansion plays an important role in the longer-term investment case.
Manulife Financial Corporation (NYSE:MFC) is a global financial services company offering insurance and financial advice. It operates under the Manulife brand in Canada, Asia, and Europe, and under the John Hancock name in the United States.
11. Mondelez International, Inc. (NASDAQ:MDLZ)
Dividend Yield as of January 22: 3.49%
On January 21, JPMorgan lowered its price target on Mondelez International, Inc. (NASDAQ:MDLZ) to $69 from $71. It maintained an Overweight rating ahead of the company’s Q4 earnings report on February 3. The firm expects earnings momentum in 2026 to show up more in the second half of the year, as higher spending and softer volumes are likely to weigh on results early on.
Cocoa prices remain the main pressure point. Mondelez has warned that “unprecedented cocoa cost inflation” could cut adjusted EPS by as much as 15% in 2025. Still, the company is entering this period from a position of strength. Its global footprint and portfolio of established brands help support results even as the cost environment remains difficult.
A January 20 note from CNBC Pro suggested Mondelez could hold up well as it adjusts its approach for consumers who are becoming more price-conscious. There is also some potential relief ahead, with cocoa prices beginning to show signs of easing in 2026, which would benefit the Cadbury owner.
From a risk profile perspective, the stock remains defensive. Mondelez has a beta of 0.04, a dividend yield of 3.4%, and a total debt-to-equity ratio of 68.9%. Over the past 12 months, the shares have been largely stable, up by just 1%.
Mondelez International, Inc. (NASDAQ:MDLZ) is one of the world’s largest snack companies and operates within the consumer staples sector. When economic conditions weaken, spending on food tends to remain steady, and demand for lower-priced options often increases. That dynamic can make large food producers more attractive when other areas of consumer spending come under pressure.
10. U.S. Bancorp (NYSE:USB)
Dividend Yield as of January 22: 3.75%
On January 21, TD Cowen raised its price target on U.S. Bancorp (NYSE:USB) to $66 from $65 and kept a Buy rating.
The firm said 4Q25 core EPS of $1.26 came in ahead of expectations. Net interest income and fees both surprised to the upside, while expense control stayed tight. Pre-provision operating leverage was solid during the quarter. With a more supportive setup heading into 2026, the stock outperformed after the earnings release.
In a separate development, Reuters reported that U.S. Bancorp said on January 20 it plans to acquire Wall Street brokerage BTIG for up to $1 billion in cash and stock. The deal brings in a familiar partner and strengthens the bank’s capital markets presence.
The acquisition gives U.S. Bancorp access to BTIG’s investment banking, institutional sales and trading, research, and prime brokerage capabilities as it continues to expand beyond traditional banking. Stephen Philipson, head of wealth, corporate, commercial and institutional banking at U.S. Bancorp, said:
“BTIG’s addition to U.S. Bancorp is a strategic move to fill key product gaps for our corporate and institutional clients, enabling us to offer a more comprehensive suite of capital markets services.”
The relationship between the two firms goes back years. BTIG has served as U.S. Bancorp’s equity capital markets referral partner since 2014.
U.S. Bancorp will pay $725 million in cash and stock upfront, with up to an additional $275 million in cash over three years tied to performance targets. The deal is expected to add new capabilities in equity capital markets, M&A advisory, and equity trading. It should also contribute roughly $750 million in annual revenue, largely fee-based.
U.S. Bancorp (NYSE:USB) is a financial services holding company with operations across Wealth, Corporate, Commercial and Institutional Banking, Consumer and Business Banking, Payment Services, and Treasury and Corporate Support.
9. OGE Energy Corp. (NYSE:OGE)
Dividend Yield as of January 22: 3.89%
OGE Energy Corp. (NYSE:OGE) is among the best stocks on our dividend contenders list.
On January 23, RBC Capital analyst Stephen D’Ambrisi raised the firm’s price target on OGE Energy Corp. (NYSE:OGE) to $51 from $49 and maintained a Sector Perform rating. The update came as part of a broader research note ahead of fourth-quarter earnings in the utilities sector.
D’Ambrisi noted that over the past 18 months, the sector has seen frequent changes in capital deployment plans. Many utilities that usually update investors during the Q4 roll-forward period instead offered early or off-cycle previews of revised capital plans. Those updates led RBC to adjust its sector models, according to the note.
Earlier in the month, on January 13, BMO Capital initiated coverage of OGE Energy with a Market Perform rating and a $45 price target. The firm pointed to a supportive fundamental backdrop, with generation capacity needs creating clear opportunities for capital investment. At the same time, the analyst said investors are likely to remain “hyper-focused” on regulatory and political tail risks heading into 2026. As a result, BMO sees limited room for multiple expansions in the near term.
OGE Energy Corp. (NYSE:OGE) is a holding company whose primary business is providing electricity in Oklahoma and western Arkansas. The company reports its operations largely through a single segment, its electric utility business.
8. Comcast Corporation (NASDAQ:CMCSA)
Dividend Yield as of January 22: 4.57%
On January 13, Barclays analyst Kannan Venkateshwar lowered the firm’s price target on Comcast Corporation (NASDAQ:CMCSA) to $28 from $30 and maintained an Equal Weight rating. The change came as part of a broader adjustment to price targets across the cable, satellite, and telecom services group tied to Barclays’ 2026 outlook.
In the note, the analyst said 2026 “could establish the longer-term operating road map for convergence, which may also require a different capital allocation template across the industry.” Even after the reset, Barclays said Comcast “could be an interesting value opportunity.”
On the business front, Comcast has been leaning into new distribution channels. Earlier in December, the company and Amazon announced the rollout of Amazon Luna across millions of Xfinity TV and streaming devices in the US. Xfinity customers with eligible X1 or Xfinity Xumo Stream Box devices can now access Amazon Luna’s game library directly through their existing entertainment setup.
Amazon Luna itself has also been refreshed. The service has been redesigned to appeal to players with a wide range of interests and experience levels. Prime members now get access to more than 50 games at no extra cost. The offering includes GameNight experiences designed for living-room play, with no controller required. Players can scan a QR code on their TV and join using their mobile phones.
Comcast Corporation (NASDAQ:CMCSA) is a global media and technology company that provides broadband, wireless, and video services through its brands.
7. Prudential Financial, Inc. (NYSE:PRU)
Dividend Yield as of January 22: 4.93%
On January 13, Wells Fargo analyst Elyse Greenspan raised the firm’s price target on Prudential Financial, Inc. (NYSE:PRU) to $115 from $113 and kept an Equal Weight rating on the shares.
Heading into quarterly results for the insurance sector, the firm said attention should stay on a few key areas. For P&C insurers, pricing trends, loss development, and reserves remain front and center. For brokers, the focus shifts to organic growth and margins. Life insurers are being judged more on sales trends, capital levels, and forward guidance.
Separately, a January 16 report from Reuters said the CEO of Prudential Financial’s Japan life insurance unit will step down following revelations of employee misconduct. The company disclosed that around 100 employees were involved in improper activity totaling roughly 3.1 billion yen ($19.60 million), including cases of embezzlement.
The Japan unit said 498 customers were affected by the newly uncovered issues. The misconduct included employees improperly receiving funds through investment solicitations and personally borrowing money from customers.CEO and President Kan Mabara will resign effective February 1. He will be replaced by Hiromitsu Tokumaru, who currently serves as president and CEO of Prudential Gibraltar Financial Life Insurance. The situation was first reported earlier in the day by The Asahi Shimbun.
Prudential’s Japan unit initially flagged misconduct in 2024 and has been conducting a broader review since August of that year. The company said the review followed the discovery of multiple similar cases involving both current and former employees.
Prudential Financial, Inc. (NYSE:PRU) is a diversified financial services company and global investment manager, offering a wide range of financial products and services worldwide.
6. Brookfield Infrastructure Partners L.P. (NYSE:BIP)
Dividend Yield as of January 22: 4.98%
On January 16, Scotiabank raised its price target on Brookfield Infrastructure Partners L.P. (NYSE:BIP) to $44 from $41 and maintained an Outperform rating. The update came as part of a broader refresh of price targets across the energy infrastructure names under the firm’s coverage.
The bank pointed to supportive industry trends, especially strong power demand and rising LNG exports, which are creating more investment opportunities. Those tailwinds have led Scotiabank to see an upward bias to its long-term estimates for the group.
Brookfield itself expects to grow funds from operations per share by more than 10% a year over the long run. Inflation-linked rate increases, rising volumes tied to global economic growth, ongoing capital projects, and acquisitions are all expected to contribute. The company has also positioned its portfolio to benefit from several large-scale trends, including demand tied to AI-related infrastructure. That backdrop supports its view that FFO per share could grow closer to 14% annually over the medium term.
That level of earnings growth underpins Brookfield’s dividend, which currently yields about 4.9%. Management expects to raise the payout by roughly 5% to 9% per year.
Brookfield Infrastructure Partners L.P. (NYSE:BIP) is a global infrastructure owner and operator with long-life assets spanning utilities, transport, midstream, and data infrastructure across the U.S., Asia Pacific, and Europe.
5. Edison International (NYSE:EIX)
Dividend Yield as of January 22: 5.81%
On January 21, Morgan Stanley raised its price target on Edison International (NYSE:EIX) to $61 from $57 and kept an Underweight rating. The update came as part of a broader refresh of regulated and diversified utilities and independent power producers in North America. The firm noted that utilities lagged the broader market’s return in December.
Earlier in the month, Edison International declared a quarterly common stock dividend of $0.8775 per share. The dividend is payable on January 31, 2026, to shareholders of record on January 7, 2026. The move lifts the annual dividend to $3.51 per share, up 6% from the prior annual rate of $3.31.
Pedro Pizarro, president and CEO of Edison International, said the increase reflects the board’s and management’s confidence in the company’s financial position and outlook. He added that it reinforces management’s commitment to delivering long-term EPS growth of 5% to 7%. The latest increase also marks the company’s 22nd consecutive year of dividend growth.
Edison International (NYSE:EIX) is one of the largest electric utility holding companies in the U.S., with a focus on delivering clean, reliable energy and related services through its operating subsidiaries.
4. United Parcel Service, Inc. (NYSE:UPS)
Dividend Yield as of January 22: 6.05%
On January 21, Evercore ISI raised its price target on United Parcel Service, Inc. (NYSE:UPS) to $113 from $94 and kept an In Line rating on the shares. The analyst pointed to a mixed macro backdrop that continues to shape revenue expectations, while cost initiatives remain central to EPS growth. Looking ahead, fourth-quarter earnings are “expected to hold steady.”
On the strategic front, UPS said earlier in November that it completed the acquisition of Andlauer Healthcare Group, a Canada-based provider of healthcare-focused supply chain and cold chain logistics services. Under the deal terms, AHG shareholders received C$55.00 per share in cash, valuing the transaction at about C$2.2 billion, or roughly USD $1.6 billion.
The acquisition highlights UPS’s push to expand its specialty healthcare capabilities. By adding AHG’s cold chain network and sector expertise, UPS aims to shorten transit times, improve end-to-end visibility, extend its global reach, and strengthen quality assurance for healthcare customers.
United Parcel Service, Inc. (NYSE:UPS) offers integrated logistics and transportation services to customers in more than 200 countries and territories worldwide.
3. Pfizer Inc. (NYSE:PFE)
Dividend Yield as of January 22: 6.64%
Reuters reported on January 20 that Britain’s GSK and Japan’s Shionogi said Pfizer Inc. (NYSE:PFE) will exit their HIV-focused joint venture, ViiV Healthcare. The transaction values Pfizer’s exit at about $1.9 billion and sharply increases Shionogi’s stake in the business.
Under the deal, Shionogi will pay $2.13 billion for newly issued shares, lifting its ownership in ViiV Healthcare to 21.7% from 10%. GSK will continue to control the company, keeping its 78.3% majority stake.
Pfizer will receive $1.88 billion for its 11.7% holding. GSK, meanwhile, will receive a $250 million special dividend as ViiV cancels Pfizer’s shares. GSK originally formed ViiV Healthcare with Pfizer in 2009, with Shionogi joining the venture in 2012.
The companies said the deal is subject to regulatory approvals and is expected to close in the first quarter of 2026. Pfizer’s exit comes as the company braces for a more difficult stretch. In December, it warned that the years ahead could be bumpy, starting in 2026, pointing to weaker sales of its COVID vaccine and treatment, price cuts promised to the US government, and the loss of patent protection on several key drugs. Pfizer does not expect to return to revenue growth until 2029.
In separate Reuters reporting, Pfizer CEO Albert Bourla said on January 12 that the company is preparing for a consumer-driven obesity drug market that could rival the surge it experienced after launching Viagra in 1998. Bourla said that even during talks to acquire weight-loss drugmaker Metsera, announced in September 2025, Pfizer did not expect the cash-pay obesity market, now led by Eli Lilly and Novo Nordisk, to grow so quickly.
Pfizer developed and sold Viagra for years before spinning off the business that controls the brand in 2020. The drug is now sold largely in generic form.
Pfizer Inc. (NYSE:PFE) is a global, research-based biopharmaceutical company focused on discovering, developing, and commercializing medicines worldwide.
2. Verizon Communications Inc. (NYSE:VZ)
Dividend Yield as of January 22: 7.03%
On January 22, Barclays reinstated coverage of Verizon Communications Inc. (NYSE:VZ) with an Equal Weight rating and a $43 price target. The firm said worries around competitive intensity in the telecom market may be overdone. Investors are expected to be “more tuned in to” Verizon earnings this quarter to better understand what those results say about competition across the industry, the analyst wrote in a research note.
On January 20, Verizon Communications Inc. said it would issue a $20 credit to hundreds of thousands of customers after a widespread outage knocked out service for about 10 hours, according to Reuters. The company said the disruption stemmed from a software problem and largely affected customers across the Northeast, Southern California, Texas, and parts of the Midwest. Verizon emphasized that the incident was not related to a cyberattack.
The outage caused enough disruption that several major cities urged residents to use other carriers to place emergency calls while Verizon’s network was down.
Downdetector, which monitors service interruptions, said it received roughly 2.2 million reports tied to the Verizon outage over 24 hours recently.
Verizon Communications Inc. (NYSE:VZ) is a holding company that, through its subsidiaries, provides communications, technology, information, and streaming services to consumers, businesses, and government entities.
1. MPLX LP (NYSE:MPLX)
Dividend Yield as of January 22: 7.74%
On January 5, Raymond James analyst Justin Jenkins downgraded MPLX LP (NYSE:MPLX) to Market Perform from Outperform, without assigning a price target.
The move came as the firm reassessed its ratings across the midstream group heading into 2026. Jenkins noted that the sector enters the new year with solid momentum, but said strong and “constructive” share performance in 2025 means the focus now shifts away from broad trends and toward execution.
Raymond James said investors are increasingly zeroed in on how individual midstream companies turn favorable macro conditions into tangible, sustainable cash flow.
The company is on firm ground. It recently bought a sour gas-treating business in the Delaware Basin, Northwest Midstream, in a $2.4 billion deal. It also picked up the remaining 55% stake in the BANGL pipeline for $715 million. That pipeline links the Permian Basin to the Gulf Coast.
These moves are about more than scale. They put MPLX LP in a strong position to benefit from the surge in data center development across Texas. Data centers consume massive amounts of power to keep servers and cooling systems running nonstop, and that is driving steady growth in natural gas demand. MPLX recently signed a letter of intent with MARA Holdings to supply natural gas from the Delaware Basin to power MARA’s electricity plants and data centers in West Texas.
At the same time, MPLX LP (NYSE:MPLX) is cleaning up its portfolio. The company is selling noncore gathering and processing assets in the Rockies, with plans to raise about $1 billion from those divestitures.
Taken together, 2025 marked an important shift for MPLX. The company invested roughly $3.5 billion in acquisitions, broadening its cash flow base beyond its long-standing ties to Marathon Petroleum. Those investments are expected to lift cash flows over time and provide room for continued dividend growth and attractive yields in the years ahead.
While we acknowledge the potential of MPLX 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 MPLX and that has 100x upside potential, check out our report about this cheapest AI stock.
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