Investors are increasingly gravitating towards dividend stocks as a means to navigate the market’s ups and downs in 2026. In the first quarter alone, approximately $22 billion flowed into dividend exchange-traded funds (ETFs), marking the highest influx since the second quarter of 2022, according to data from Morningstar.
Despite the S&P 500 reaching a new record recently, the market has experienced significant turbulence this year. Factors contributing to this volatility include geopolitical tensions related to the Iran war, fluctuating oil prices, and concerns over artificial intelligence’s disruptive potential. In times of market uncertainty, many investors gravitate towards dividend-paying stocks as a safer investment option, noted Morningstar strategist Dan Lefkovitz.
Lefkovitz cautioned against trying to time the market, highlighting that such strategies often lead to missed opportunities. He observed trends indicating a bounce back in the broader market, particularly led by technology stocks, which typically offer lower dividends. “Investors might have miscalculated their investments in dividend stocks during this recovery,” he explained.
Instead of short-term trading, Lefkovitz advocates for a buy-and-hold strategy, emphasizing that while there will be periods when dividend stocks outperform, there will also be times when they lag. He commented, “Over the long term, dividend stocks are a valuable way to engage in the equity market, offering both income and total return. However, it’s crucial to approach this with a risk-aware mindset and remain steadfast through performance cycles.”
Reflecting this sentiment, CNBC Pro explored high-dividend stocks favored by analysts within the iShares Core High Dividend ETF (HDV). This ETF is designed to track the Morningstar Dividend Yield Focus Index, comprising stocks with high dividend yields. The stocks identified not only hold buy or overweight ratings from 55% or more of analysts but also show potential upside of at least 15% compared to their average price targets, according to data from FactSet. Notably, these stocks offer dividend yields surpassing 1.5%, exceeding the current S&P 500 yield of 1.03%.
Among the highlighted stocks is AbbVie, which boasts a dividend yield of 3.4% and an impressive 26% upside to its average price target. Approximately 74% of analysts covering AbbVie rate it as a buy or overweight. Bank of America’s Jason Gerberry recently upgraded the stock following AbbVie’s robust first-quarter earnings, praising its growth prospects and limited foreseeable challenges in the next seven years. He noted strong and durable growth within its core immunology brands despite rising competition.
Meanwhile, Chevron has seen a significant uptick of 21% year-to-date, largely fueled by rising oil prices. The company reported mixed results for its first quarter, with revenues falling below expectations while adjusted earnings surpassed them. CEO Mike Wirth pointed to the strength of Chevron’s operations in the United States, underscoring that the Middle East accounts for less than 5% of its production. The stock offers a dividend yield of 3.9% and nearly 17% potential upside to its average price target, with 59% of analysts recommending a buy.
PNC Financial Services has also emerged as a strong candidate, yielding 3.1% with a 16.5% upside to its average target. Approximately 75% of analysts covering PNC rate it a buy. Following an earnings beat in the first quarter, the stock has gained 3% thus far in 2026.
Additionally, utility company PPL presents a dividend yield of 3.1% with a 17% upside to the average price target. Approximately 67% of analysts covering PPL have given it a buy rating, with Barclays highlighting its strong earnings potential and robust economic pipeline.
As investors continue to seek refuge in dividends amid market instability, these stocks exemplify opportunities for growth and income amidst a chaotic financial landscape.
