My Top 6 Dividend Stocks for 2026 (Buy Now, Don’t Wait)

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My Top 6 Dividend Stocks for 2026 (Buy Now, Don’t Wait)

Let’s get our 2026 dividend shopping finished ahead of time, shall we?

Come January, we’ll have plenty of company from vanilla investors, rushing to “figure out the new year.” Trends. Predictions. Buy this!

But there’s no reason to wait. We already know some of the key dimensions of 2026. Interest rates, for one, are on their way down. Fed Chair Jay Powell has delivered two rate cuts to end the year, with more to follow.

Whether or not Powell personally delivers them doesn’t matter to us. Powell is on his way out. But the Fed show will go on, with a ringmaster ready to roll.… Read more

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Backdoor AI Beneficiary Yields 8.8%, Trades at 13% Discount

Drug development will never be the same! AI is compressing time-to-market and extending the sales calendar for pharma. More profits from new medications. More new medications, too.

Many pharma and biotech stocks will boom as we enter the “sci-fi” stage of research and development. And this elite 8.8% dividend will directly benefit.

It typically takes 10 to 15 years to develop a new drug. Every month matters because patents last only 20 years. The faster a company gets a drug to market, the more months and years it enjoys with monopoly pricing power.

When patents expire, the generic versions hit the market.… Read more

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Dividend Reset = Opportunity to Grab This 9.2% Yield at a Discount

Most Wall Street “suits” are allergic to dividend cuts. These spreadsheet jockeys sooooo lack imagination. They prefer linear trends—up and to the right.

Dividend growers model nicely. Payout “resets” (cuts!) do not. So, there is often a knee-jerk reaction from analysts to sell every divvie slash they see.

Same goes for most individual income investors. These vanilla beans sold BlackRock Health Sciences Term Trust (BMEZ) late last week when BlackRock sliced the dividends for three of its popular funds.

The weaker hands sold. Big payouts remain. As contrarians, we’re intrigued.

Dividend cuts, ironically, often mark the start of opportunity. Here’s what the knee-jerk sellers miss:

  • Even after the trim, BMEZ still yields 9.2%.

… Read more

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Dividend Reset = Opportunity to Grab This 9.2% Yield at a Discount

Most Wall Street “suits” are allergic to dividend cuts. These spreadsheet jockeys sooooo lack imagination. They prefer linear trends—up and to the right.

Dividend growers model nicely. Payout “resets” (cuts!) do not. So, there is often a knee-jerk reaction from analysts to sell every divvie slash they see.

Same goes for most individual income investors. These vanilla beans sold BlackRock Health Sciences Term Trust (BMEZ) late last week when BlackRock sliced the dividends for three of its popular funds.

The weaker hands sold. Big payouts remain. As contrarians, we’re intrigued.

Dividend cuts, ironically, often mark the start of opportunity. Here’s what the knee-jerk sellers miss:

  • Even after the trim, BMEZ still yields 9.2%.

… Read more

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This 13% Divvie Should Be on Your List as RFK Takes Over HHS

In the last few weeks, we’ve talked a lot about “hated” dividends set to soar as mainstream investors get it wrong on Trump 2.0.

Last week, we covered utility stocks, “bond proxies” that look great here, and a 7.6%-yielding utility fund to buy now.

This week we’re shifting to another despised corner of the market, again thanks to the new administration—healthcare. But our play isn’t some middling payer, like 3%-yielding Johnson & Johnson (JNJ).

A 13% Dividend That Grows

Instead, we’re going to drop a “1” in front of that “3” and buy a 13%-yielding healthcare closed-end fund (CEF).… Read more

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Trump 2.0: A Tale of 2 Stock Markets?

How are we feeling about the stock market, my fellow contrarian?

More importantly, should we have an opinion on the market-at-large at all? I don’t think so. Trump 2.0 will create a “market barbell” of big winners and sad losers. Let’s focus on the dividend payers that will be propelled higher—and step over the laggards.

There are some dandy dividends ready to dart higher. Today they sit in the bargain bin thanks to investor reservations about the Federal Reserve. When Chairman Jay Powell took the stage in December, he delivered a sober discourse to investors: Don’t expect as many rate cuts as you were hoping for.… Read more

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Backdoor Tech Dividend Bargain Yields 14.3%, Trades at Big Discount

Intuitive Surgical (ISRG) is an intriguing everything-proof stock for Trump 2.0. The company specializes in cutting-edge surgical devices and regardless of what the Fed or President-Elect Trump does in 2025, we know that Americans will continue to have surgeries.

Human surgeons are expensive and prone to mistakes, so the big trend in the surgery room is towards robotics. Intuitive created the da Vinci system, the most widely used surgical robot in the world.

Business is booming. The company anticipates 12% to 16% year-over-year demand growth for da Vinci. Its technology is less invasive and more precise than humans, which leads to faster recovery times for patients.… Read more

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In a Nosebleed Market These Cheap Dividends Dish Up to 14%

With the market at nosebleed valuations, where can we look for value and yield?

Let’s turn to our favorite three-letter acronym. C-E-Fs.

As usual we have a handful of closed-end funds (CEFs) getting no love from Wall Street. This is perfect for us as we’re talking about dividends up to 14% and discounts between 10% and 15%.

In other words, these fat payers are trading for 85 to 90 cents on the dollar. Let’s discuss.

Gabelli Dividend & Income Trust (GDV)
Distribution Rate: 5.8%
Discount to NAV: 15.0%

We begin with Gabelli Dividend & Income Trust (GDV), a top-rate closed-end fund whose management team includes legendary value investor Mario Gabelli.… Read more

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Boom or Bubble? With Up To 13% Yields, I Don’t Care!

AI bubble? Bear market rally? I don’t care because I see five dividends between 10.1% and 13.5%.

Now that’s rarified air for yields! A benefit of a manic market such as this, where we have fear alongside insanity at the same time.

The five double-digit dividends we’re about to discuss aren’t tied to individual stocks, either. These payouts are dished by diversified funds with dozens or hundreds of holdings. All have experienced managers at the helm.

They just happen to be cheap because CEFland is still on sale after a rough run in 2022. Which is where we contrarians pick up the case.… Read more

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Colossal Cash Machines: 5 CEF Yields of 10% or More

Bull or bear? Who cares when we can collect dividends between 10.1% and 11.8%.

That’s not a typo. The S&P 500 pays 1.7%. The 10-year Treasury yields two points more at 3.7%.

That’s better—but it ain’t 11.8%!

The same million-dollar retirement portfolio can either generate $17,000, $37,000 or $118,000 per year. Tough choice!

And better yet, the double-digit dividends I mentioned aren’t penny stocks. We’re talking about diversified funds, with dozens of holdings, managed by skilled advisors that often have decades of experience at the helm.

How Do You Spell “Massive Income”? C-E-F.

A couple of weeks ago, we discussed CEFs versus ETFs:

“If I can give you just one piece of advice to start 2023, it’s this: do not trust your dividend income to ETFs!”

… Read more

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