The stock market had yet another excellent year, and the interest surrounding artificial intelligence (AI) remained high. It's now clear that AI isn't just some fad, so it's worth it for investors to purchase shares of some of the top companies in that industry.
However, it's also important not to forget about proven strategies for earning excellent returns over the long run, including investing in top dividend stocks. Below, I'll consider two that look like solid buys in 2026: Visa (V 0.96%) and Medtronic (MDT 0.26%).
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1. Visa
Visa, a leading financial services company, is a reliable stock to buy and hold. Although investors don't know what 2026 has in store, the business is well-adapted to thrive -- or at least navigate -- even the most challenging conditions.
Visa generates revenue through the fees it charges for every credit or debit card transaction that it facilitates through its payment network. With billions of cards in circulation and millions of transactions every day, the scale of Visa's business is large.
Recessions might lead to lower payment volume for the company, but since Visa doesn't issue credit cards itself, it isn't exposed to credit risk and loan losses -- a significant problem for banks when the economy tanks. Visa has historically navigated recessions fairly well, albeit not unscathed, with slower revenue growth.
In addition, when inflation picks up, it's actually good for the company's business. Because the fees it charges are calculated as a percentage of the transaction amount, higher prices lead to rising revenue for Visa.
NYSE: V
Key Data Points
Further, the company boasts excellent growth prospects. Visa is betting on the continued shift away from cash as people opt for more convenient, easy-to-carry, and safer digital-payment methods.
The growth of the e-commerce market is also playing a significant role. There's a long runway ahead that the company could ride for decades, especially considering its rock-solid competitive moat, thanks to its network effects.
Then, there's Visa's dividend. However, its forward yield of 0.8% is hardly impressive. It's lower than the 1.2% average for the S&P 500 (which is, itself, not that high).
But Visa consistently raises its dividend, which has increased by 379% during the past decade. The company generates enough cash flow to support its dividend program and reinvest in the business, as evidenced by its modest cash payout ratio of 21.5%. Visa is an excellent stock to consider for growth and income-oriented investors.
2. Medtronic
Medtronic, a leader in medical devices, had a strong showing in 2025. Despite the threat of tariffs, the company's revenue and earnings growth were strong by its standards.
The healthcare giant owed that performance partly to relatively new product launches, especially within its Pulse Field Ablation franchise, a relatively new and groundbreaking technology to treat heart-related conditions like atrial fibrillation. Medtronic's work in this field is helping boost its financial results, and the company expects that trend to continue as demand for these products remains high.
Meanwhile, the company has also recently received clearance for the Hugo system, a robotic-assisted surgery (RAS) device, in the U.S. for use in urologic procedures. Medtronic has been working on this project for a long time. Although the Hugo may not add to the company's financial results much (or at all) in 2026, it's a major step forward. Medtronic will continue testing the device and seeking newer indications, too.
NYSE: MDT
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Meanwhile, the core business remains strong. Medtronic boasts dozens of devices across several therapeutic areas and generates consistent revenue and earnings, even during tough economic times, because it sells devices that are critical to people's health. The company is also divesting its diabetes-care business, which has lower operating margins than the rest of its business.
Medtronic's strength and long-term growth avenues, including through the RAS market, make the stock attractive, and the dividend makes it even more so. Medtronic's yield is 2.9 %, and the company has increased its payouts for 48 consecutive years.
In a few years, it will become a Dividend King, a company that has increased its dividend for at least 50 consecutive years. That makes it an excellent stock for dividend investors.
