Investors love dividend stocks because they provide dependable passive income streams and an excellent opportunity for solid total return. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the total return on an investment or portfolio consists of income and stock appreciation. At 24/7 Wall St., we have focused on dividend stocks for over 15 years because, despite the stock market’s ups and downs, many people need reliable passive income streams to supplement their income from employment or other sources such as Social Security and pensions.
After a wild start to 2026 and with the first quarter coming to an end, we decided to screen our 24/7 Wall St. dividend stock research database for companies investors know and trust that regularly pay dividends of 5% or higher. We identified five top companies that most investors know and trust. All these stocks are rated Buy by leading Wall Street firms we follow.
Why do we cover dividend stocks?
Since 1926, dividends have accounted for approximately 32% of the S&P 500’s total return, while capital appreciation has accounted for 68%. Therefore, sustainable dividend income and the potential for capital appreciation are essential to total return expectations. A study by Hartford Funds, in collaboration with Ned Davis Research, found that dividend stocks delivered an annualized return of 9.18% over the 50 years from 1973 to 2023. Over the same timeline, this was more than double the annualized return for non-payers (3.95%).
Franklin Resources
Franklin Resources (NYSE: BEN), more commonly known as Franklin Templeton, is one of the world’s largest investment management firms and pays a dependable 5.40% dividend. This company is a mutual fund powerhouse and among the most prominent global money managers. The firm markets mutual funds and institutional separate accounts under the Franklin, Templeton, and Mutual Series brands. At times, 50% of its sales are from outside the United States, an advantage given the maturing U.S. market.
Franklin Resources offers its products and services under the brands of:
- Franklin
- Templeton
- Franklin Mutual Series
- Franklin Bissett
- Fiduciary Trust
- Darby
- Balanced Equity Management
- K2
- LibertyShares
- Edinburgh Partners
The 2023 to 2025 bull market has been a strong tailwind for the company; however, the stock has traded sideways recently, and the shares appear incredibly cheap. While withdrawals from baby boomers may be a concern, the path forward in 2026 and beyond also appears solid, as the shares have rebounded from their April 2025 lows.
BMO Capital Markets has an Outperform rating and a $26 price target.
Kimberly-Clark
Kimberly-Clark (NYSE: KMB) is an American multinational personal care corporation that produces mostly paper-based consumer products worldwide. This consumer staples leader is a safe bet for nervous investors, paying a hefty 5.02% dividend. It operates through three segments.
The Personal Care segment offers a diverse range of products, including:
- Disposable diapers
- Swim pants, training and youth pants, baby wipes
- Feminine and incontinence care products, as well as related products under the Huggies, Pull-Ups, Little Swimmers, GoodNites, DryNites, Sweety, Kotex, U by Kotex, Intimus, Depends, Plenitud, Softex, Poise, and other brand names
The Consumer Tissue segment provides facial and bathroom tissues, paper towels, napkins, and related products under the brand names.
- Kleenex
- Scott
- Cottonelle
- Viva
- Andrex
- Scottex
- Neve
The K-C Professional segment offers wipers, tissues, towels, apparel, soaps, and sanitizers under the Kleenex, Scott, WypAll, Kimtech, and KleenGuard brands.
Kimberly-Clark announced last year that it would acquire Kenvue (NYSE: KVUE) in a $48.7 billion deal expected to close in the second half of 2026. The acquisition will create a combined consumer health and wellness company, with Kenvue shareholders receiving cash and stock. Kenvue shareholders will get $3.50 in cash plus 0.14625 shares of Kimberly-Clark stock for each Kenvue share they own.
Piper Sandler has an Overweight rating and a $114 target price.
Prudential Financial
Prudential Financial (NYSE: PRU) offers a range of insurance, investment management, and other financial products and services in the United States and internationally. With a rich 5.81% dividend yield, this insurance and investment giant is a safe option for conservative investors.
It operates through five segments:
- Prudential Global Investment Management (PGIM)
- Retirement Strategies
- Group Insurance
- Individual Life
- International Business
The PGIM segment offers investment management services and solutions related to public fixed income, public equity, real estate debt and equity, private credit, and other alternatives, as well as multi-asset class strategies, to institutional and retail clients and its general account.
The Retirement Strategies segment provides a range of retirement investment and income products and services to retirement plan sponsors in the public, private, and not-for-profit sectors. It develops and distributes individual variable and fixed annuity products.
The Group Insurance segment offers:
- Various group life plans
- Long-term and short-term group disability
- Group corporate, bank, and trust-owned life insurance in the United States, primarily for institutional clients, for use in connection with employee and membership benefits plans
- Accidental death and dismemberment, and other supplemental health solutions
- Plan administration services in connection with its insurance coverages
The Individual Life segment develops and distributes variable life, universal life, and term life insurance products.
The International Businesses segment develops and distributes life insurance, retirement products, investment products, specific accident and health products, and advisory services. The company provides its products and services to individual and institutional customers through its proprietary and third-party distribution networks.
Jefferies has a Buy rating with a $129 target price.
Realty Income
This top company is a real estate investment trust that invests in free-standing, single-tenant commercial properties. This is an ideal stock for growth and income investors looking for a safer contrarian idea for the rest of 2026. Realty Income (NYSE: O) is an S&P 500 company that provides stockholders with dependable monthly income.
Realty Income, known as “The Monthly Dividend Company,” owns over 15,000 properties leased to recession-resistant tenants, such as grocery stores and drugstores. A credit rating, long-term leases, and a 98.2% median occupancy rate over 24 years ensure stable cash flow. The company has raised its dividend for 30 consecutive years, including 109 straight quarters, making it a Dividend Aristocrat, and it currently yields 5.29%
The company acquires and manages freestanding commercial properties that generate rental income under long-term net-lease agreements with its commercial clients.
It is engaged in a single business activity: leasing property to clients, generally on a net basis. This business activity spans various geographic boundaries and encompasses a range of property types and clients across multiple industries.
The company owns or holds interests in approximately 15,621 properties in all 50 United States, as well as:
- United Kingdom
- France
- Germany
- Ireland
- Italy
- Portugal
- Spain
With clients doing business in 89 industries, its property types include retail, industrial, gaming, and other sectors, such as agriculture and office. Its primary industry concentrations include:
- Grocery stores
- Convenience stores
- Dollar stores
- Drug stores
- Home improvement stores
- Restaurants
- Quick service
UBS has a Buy rating with a $72 price objective.
Verizon
Verizon Communications (NYSE: VZ | VZ Price Prediction) is an American multinational telecommunications company that continues to offer tremendous value. It trades at 9.13 times its estimated 2026 earnings, pays a 5.41% dividend, and is up just 2% in 2025. Verizon provides a range of communications, technology, information, and entertainment products and services to consumers, businesses, and government entities worldwide.
Verizon’s trailing 12-month interest coverage ratio is 4.6× to 5×, providing ample cushion for dividend payments. With a very predictable revenue stream from telecom services, the company has less exposure to commodity cycles. In addition, the large scale helps in financing and absorbing shocks.
It operates in two segments:
- Verizon Consumer Group
- Verizon Business Group
The Consumer segment provides wireless services across the United States through Verizon and TracFone networks, as well as through wholesale and other arrangements. It also provides fixed wireless access (FWA) broadband through its wireless networks and related equipment and devices, such as:
- Smartphones
- Tablets
- Smartwatches
- Other wireless-enabled connected devices
The segment also offers wireline services in the Mid-Atlantic and northeastern United States through its fiber-optic network, Verizon Fios product portfolio, and copper-based network.
The Business segment provides wireless and wireline communications services and products, including:
- FWA broadband
- Data
- Video and conferencing
- Corporate networking
- Security and managed network
- Local and long-distance voice
- Network access services to deliver various IoT services and products to businesses, government customers, and wireless and wireline carriers
Raymond James has a Buy rating and a $56 price target.
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