When considering the best dividend stocks, it's best to have multiple criteria in mind. For instance, in addition to considering dividend growth, you may also want to consider a stock's dividend history.
Additionally, you may want to consider other factors that could serve as catalysts for a particular dividend stock. This can help you find stocks that have both the potential to provide solid, steady cash payments from dividends, plus the opportunity for capital growth via price appreciation.
Considering all of these factors, I have identified four stocks that offer great potential for investors in 2026: Chevron (CVX +2.00%), Sonoco Products (SON +3.59%), Getty Realty (GTY +0.82%), and Target (TGT +1.05%).
Image source: Getty Images.
Even as the oil price slump persists, Chevron is likely to continue increasing its dividend
Oil and gas giant Chevron currently has a forward dividend yield of 4.22%. The company has also increased its dividend in each of the past 38 years, making it just 12 years away from becoming one of the Dividend Kings.
NYSE: CVX
Key Data Points
Despite the energy price slump, dividend growth could continue, as strongly suggested by a recent investor presentation. Alongside steady gains from the dividend, several catalysts, including a possible acquisition by Chevron of Russian oil giant Lukoil's international business, could drive gains for the stock.
Sonoco Products is another solid dividend growth play
Sonoco Products has raised its dividend for 43 years in a row. At current prices, shares in the packaging products company have a forward dividend yield of 4.46%. Even though this dividend increased by only 1.9% last year, shares could experience strong price appreciation this year.
NYSE: SON
Key Data Points
Why? Currently, Sonoco trades for less than 8 times its forward earnings. For comparison, peers like Amcor trade at forward P/E ratios in the 10-12 range. Factors such as better-than-expected growth could help bridge this valuation gap.
Lower interest rates bode well for undervalued, high-yield Getty Realty
As I've detailed recently, Getty Realty is a specialty real estate investment trust (REIT) that own gas stations and other types of automotive industry real estate. Its current forward yield of 6.7% makes it one of the high dividend REITs. Furthermore, Getty has been increasing its dividend annually for over a decade.
NYSE: GTY
Key Data Points
This track record of steady increases suggests further growth ahead. There is also the potential for stock appreciation. Admittedly, much of this hinges on the Federal Reserve further lowering interest rates; however, as REITs typically rise with rate cuts, further cuts are likely to have a positive impact on the stock price.
Target stock has bounced back, but the rebound isn't necessarily over
In recent months, share prices in big box retailer Target have bounced back from the low $80s to around $105 per share. However, the comeback may not be over just yet. Target continues to have a relatively high forward dividend yield of 4.3%. The company is also a Dividend King with 57 consecutive years of dividend growth.
NYSE: TGT
Key Data Points
Further dividend increases could, in turn, spur further appreciation for the stock. Also, consider the potential further impact of Target's turnaround on the stock price. The high end of sell-side analyst forecasts anticipates earnings of $8.35 per share for the next fiscal year, representing a nearly 15% increase compared to forecasts for the current fiscal year ending January 2026.
