While calling their performance a “renaissance” might be a slight dose of hyperbole, in the broader context, dividend stocks are off to a strong start in 2026. Emphasis on “broad” because performances in this corner of the equity market are not uniform, even for blue chip dividend stocks.
What’s notable about this year’s dividend-equity resurgence is that it has been driven primarily by high-yield groups like consumer staples, utilities and the like. oil dividend stocks. High-dividend leadership doesn’t mean payout increases are out of style. In fact, reliable dividend growth is always fashionable, as it’s where patient income investors reap long-term rewards.
These dividend stocks can become the foundation of a long-term income portfolio. Image Source: Getty Images.
If you’re an income investor looking for stocks that offer a combination of dependability, familiarity, and value, you’ll likely find a lot to like in the consumer discretionary and consumer staples sectors. Here are three names to consider that could serve as the foundation of a dividend portfolio over the next 20 years.
Take advantage of ever-increasing dividends with Domino’s
In the news it was the opposite of cutting into a fresh, hot piece of baked dough, Domino’s Pizza (DPZ +0.45%) informed Disappointing first quarter results Last week, the stock declined, contributing to a 19% year-to-date decline. The Year-Round Decline in Stocks, One of Warren Buffett’s Last Rises Berkshire Hathaway The forward price-to-earnings (P/E) ratio of the pizza chain’s shares in the equity portfolio is around 17 – its lowest in three years. This could be a sign that Domino’s is now a value stock.
today’s change
(0.45%) $1.50
current price
$331.92
key data points
market cap
$11B
day limit
$329.26 -$335.75
52wk range
$326.54 -$499.08
volume
47K
average volume
1M
gross margin
40.07%
dividend yield
2.18%
What’s not up for debate is Domino’s dominance among a small number of stocks and its ability to grow its dividend by double-digit percentages. It did so again in February, increasing its payout by 15% and extending its dividend-hike streak to 14 consecutive years.
Mondelez is amazing in the dividend department
14% year to date growth, Mondelez International (MDLZ +0.20%)The maker of Ritz crackers is one of this year’s giants among large-caps. consumer staple stocks. Speaking of number 14, it’s also Mondelez’s dividend-increasing streak over the years. At current share prices, the stock now returns about 3.3%, which is triple the average S&P 500 Index.
Mondelez’s dividend increase is a positive sign for long-term investors, but there are also near-term considerations. In the first quarter, the company gained market share in some segments. But management also acknowledged that US consumer confidence is low due to the Iran war and its effects on the economy. This could be a sign that this consumer staple stock, though already flying high this year, could benefit from an end to the conflict.
Looking ahead, some experts see Mondelez generating free cash flow (FCF) equal to 13% of sales over the long term, which could support dividend growth in the high single-digit percentages over the next decade.
Campbell is one of the risk takers
Generally, when income investors want to avoid risk they turn to the consumer staples sector, but this strategy does not apply to every stock in it. campbell (cpb +2.37%) The stock is down more than 25% so far this year.
This may disappoint investors, and rightly so. But if you can handle the risk, Campbell could be a compelling value play; Some market observers believe its shares are at a deep discount, and its dividend yield is 7.5% at the current share price.
Additionally, the company has dramatically changed its product lineup to reduce its dependence on the slow-growth soup segment. It’s even leveraging technology, including artificial intelligence, to keep up with changing consumer tastes, showing that even 150-year-old companies can try to evolve with the times. But you may have to wait for some time for those efforts to be reflected in the share price.
today’s change
(2.37%) $0.49
current price
$20.99
key data points
market cap
$6.1B
day limit
$20.36 -$21.10
52wk range
$19.76 -$36.16
volume
3.6
average volume
8.7M
gross margin
28.97%
dividend yield
7.61%
Regarding dividends, Campbell’s payout-hike streak is only two years long, and its payout ratio is a high 85.3%. This does not mean that there is going to be a cut or suspension. Still, if such a negative event were to occur, it would be the incentive many investors would need to convince them to take their dividend-hunting business elsewhere.
The good thing is that Campbell has paid a dividend for 51 consecutive years. It’s possible that management identifies payouts as an important selling point to future shareholders, at least until product-portfolio changes and technology commitments bear more fruit.