The S&P 500 is off to a fairly underwhelming start. As of Monday's close, it was up less than 2% since January. Many growth stocks have been struggling, while dividend stocks are suddenly becoming hot buys.
Two dividend stocks that are off to hot starts since the beginning of the year are Lockheed Martin (LMT +0.56%) and Texas Instruments (TXN 4.34%). They have soared past the broad index, and here's why it might not be too late to invest in them.
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Lockheed Martin
Entering trading on Tuesday, Lockheed Martin's stock was up 32% year to date. It's a fantastic performance after an unexciting year in 2025, when its share price was flat.
The company posted some strong earnings numbers at the end of January, reporting that its backlog was a record $194 billion. Its numbers came in better than its own expectations, and the business said it experienced "unprecedented demand" in the previous year. With strong government relationships and more growth expected for 2026, it's little wonder the defense stock has been a good buy early on.
NYSE: LMT
Key Data Points
Its yield of 2.2% is also about twice what you'd get with the average S&P 500 stock right now. And at 21 times its expected future earnings (based on analyst projections), it's not an expensive stock to own, either. For long-term investors, Lockheed Martin can be a great stock to buy and hold.
Texas Instruments
Another stock that's been red hot to start 2026 is semiconductor company Texas Instruments. It's up just over 26% and it also recently released its earnings numbers. For the last three months of 2025, its revenue of $4.4 billion rose by 10% year over year, as demand from data centers has been strong and driving a lot of growth for the business.
Its diversified semiconductor business features more than 80,000 parts that help companies in various industries, making it an attractive option for growth-oriented investors. Its forward price-to-earnings multiple of 33 is a bit high, but with some encouraging long-term growth prospects and its data center segment potentially being a catalyst for the foreseeable future, the stock can still be a suitable option for investors who are looking to buy and hold for years.
NASDAQ: TXN
Key Data Points
Texas Instruments pays an above-average dividend that yields 2.6%, and it has been increasing its payout for 22 consecutive years. This is not only a promising growth investment, but also a terrific dividend stock to hang on to for the long haul.
