Investors are increasingly gravitating towards consistent dividend payers amid heightened market anxiety related to artificial intelligence and its potential disruptions across various industries. Wolfe Research has pinpointed several emerging dividend aristocrats that may deliver a degree of stability amidst ongoing volatility in the stock market.
In 2026, the S&P 500 has shown minimal growth, rising less than 1% year-to-date. This lack of momentum comes in light of significant declines among major software companies—most notably, Microsoft and Salesforce, which have decreased by 17% and 25%, respectively, since the start of the year. In contrast, the ProShares S&P 500 Dividend Aristocrats ETF (NOBL), consisting of companies like McDonald’s and PepsiCo that have consistently raised their dividends for 25 consecutive years, has posted a 9% increase year-to-date.
Wolfe Research advocates for investing in dividend aristocrats as a sound defensive strategy, particularly during uncertain economic conditions. Chief Investment Strategist Chris Senyek emphasizes that these stocks have demonstrated a tendency to outperform both before and after economic recessions, making them a potential safe haven for investors.
In their analysis, Wolfe Research has identified several emerging dividend aristocrats—companies that have raised their dividends for at least 15 years. Among the notable names is Verizon Communications, which raised its dividend for the 19th consecutive year last September. The stock has appreciated 20% so far in 2026 and currently boasts a dividend yield of approximately 5.8%. While 16 out of 27 analysts rate Verizon as a hold, with a consensus price target suggesting an upside of nearly 3%, optimism from Daiwa Capital Markets stands out as they recently upgraded Verizon to a buy. Analyst Jonathan Kees commended the stable business model and predictable financial performance offered by telecom companies like Verizon, viewing them as an attractive option for cautious investors.
Costco Wholesale also made the list curated by Wolfe Research. Known for its steady pricing on items like rotisserie chicken, the company has demonstrated a strong commitment to dividend payments over the last two decades. In April, Costco raised its quarterly dividend from $1.16 to $1.30 per share. Shares of the warehouse club have risen 14% in 2026, and the stock currently offers a dividend yield of 0.5%. Earlier this month, JPMorgan highlighted Costco as a potential beneficiary as tax season approaches. Analyst Christopher Horvers noted that Costco is positioned to thrive in a stimulated consumer environment due to its favorable demographic factors and product assortment, leading to strong buy ratings from 25 out of 38 analysts.
Other companies highlighted as emerging dividend aristocrats include BlackRock, Hershey Co., and Waste Management, further showcasing a diverse range of industries that may provide investors with the stability they seek in today’s turbulent market landscape.
