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- The Fed is expected to continue lowering interest rates in 2026.
- Bond and money market yields will suffer.
- More and more investors are turning to dividend stocks for better passive income.
- For a limited time, get an InvestingPro subscription at the lowest price of the year with our New Year’s sale.
The Federal Reserve still has more rate cuts ahead this year. As rates fall, returns on money market funds and bonds are shrinking. Because of this, many investors who want steady income for retirement or other needs are shifting toward dividend stocks.
But dividend stocks vary widely. Some offer high yields that later get cut or disappear altogether. For that reason, income-focused investors look beyond headline yields and pay close attention to a company’s dividend history, including how long it has paid dividends and whether those payouts have grown consistently over time.
Stocks that have raised their dividends and paid them without interruption for at least 25 years are known as Dividend Aristocrats.
These companies tend to be long-established and financially stable. Many investors build portfolios around them, holding the shares for years while collecting and reinvesting dividends over time.
For investors looking to add stability at the start of 2026 while earning steady passive income, this type of stock remains especially relevant.
9 Dividend Aristocrats With up to 36% Upside Potential
We used the Investing.com screener to find US dividend aristocrats that offer dividend yields above 3 percent, appear at least 10% undervalued, and show strong financial health.
Here is how these requirements were set up in the screener:
This search identified nine stocks:
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More specifically, these stocks have raised their dividends for 31 to 55 straight years and offer dividend yields ranging from 3.4% to 7.2%.
Six of the companies on the list have paid dividends for more than 50 years. From a valuation standpoint, they also appear undervalued by about 12.2% to 36% based on InvestingPro’s Fair Value, which combines several widely used valuation models.
That said, there are many other attractive dividend opportunities beyond the Dividend Aristocrats.
The Investing.com screener includes several ready-made dividend-focused searches. These let investors find stocks that match different dividend strategies with a single click.
Please note that some of these pre-configured searches are available only to InvestingPro subscribers with a PRO+ plan.
If you’re not yet an InvestingPro subscriber and want to explore the opportunities mentioned in this article, along with access to InvestingPro tools, you can now take advantage of the New Year’s sale by clicking the button below.
The features mentioned in this article are far from being the only InvestingPro tools useful for market success. In fact, InvestingPro offers a wide range of tools that enable investors to always know how to react in the stock market, regardless of market conditions. These include:
- AI-managed stock market strategies that are re-evaluated monthly.
- 10 years of historical financial data for thousands of global stocks.
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- And many other tools that help tens of thousands of investors outperform the market every day!
Tens of thousands of investors are already using InvestingPro to outperform the market. Why shouldn’t you?
Disclaimer: This article is written for informational purposes only. It is not intended to encourage the purchase of assets in any way, nor does it constitute a solicitation, offer, recommendation or suggestion to invest. I would like to remind you that all assets are evaluated from multiple perspectives and are highly risky, so any investment decision and the associated risk belongs to the investor. We also do not provide any investment advisory services.