Investors seeking relative safety are turning to consistent dividend payers – and Wolfe Research has highlighted a few emerging dividend aristocrats that may offer them some stability. Anxiety around artificial intelligence and its ability to upend business models in an array of industries has weighed down the stock market in 2026. The S & P 500 is up less than 1% year to date as software giants such as Microsoft and Salesforce have tumbled 17% and 25%, respectively, just since New Years. Meanwhile, the ProShares S & P 500 Dividend Aristocrats ETF (NOBL) , made up of companies like McDonald’s and PepsiCo that have all raised their dividends every year for the past quarter century, has advanced more than 9% year to date. NOBL .SPX YTD mountain The S & P 500 versus the ProShares S & P 500 Dividend Aristocrats ETF (NOBL) in 2026 Investing in dividend aristocrats is a preferred defensive strategy at Wolfe Research. The group “can be a good place to ‘hide’ in the event of an economic slowdown or recessionary environment,” according to chief investment strategist Chris Senyek. “This cohort of stocks has generally outperformed heading into and out of recession,” he said in a Monday report. Wolfe and his team went one step further, identifying what they called emerging dividend aristocrats – companies that have lifted their dividend for at least 15 years. Here are a few of the names that turned up: Verizon Communications last September raised its dividend for the 19th straight year. The stock, up 20% in 2026, has a current dividend yield of about 5.8%. The majority of analysts are hesitant on Verizon after this year’s runup, with 16 of 27 rating it a hold, according to LSEG. Consensus price targets see nearly 3% upside from current levels. But Daiwa Capital Markets is more optimistic, upgrading Verizon to buy earlier this month. Analyst Jonathan Kees highlighted the stable profits, dividend and share price that telecom providers like Verizon can offer shareholders. “In a period of economic and market uncertainty, we see the telco industry’s steady business, stable customer base & predictable financial performance as a welcome haven for anxious investors,” he wrote in a Feb. 18 report. “We see Verizon as having the best risk-reward, justifying its upgrade,” the analyst said, noting that of the three major U.S. telecom companies, Verizon is the one with the longest history of paying dividends and a “singular focus” on raising its payments. Costco Wholesale also made Wolfe’s list. The company famous for keeping its rotisserie chicken $4.99 for years has been just as steadfast on dividends, raising payouts over the past two decades. Costco last raised its regular dividend in April , boosting the quarterly payment to $1.30 per share from $1.16. The warehouse club also has a history of occasionally paying large one-time dividends. Investors have flocked to Costco amid this year’s market upheaval: Shares are up 14% in 2026, and the stock offers a current dividend yield of 0.5%. Earlier this month, JPMorgan pointed to the company as being a key beneficiary of tax season. “Demographically, COST is positioned to be the biggest winner into a stimulated consumer environment given geographic, member demographic, and mix differences,” said analyst Christopher Horvers in a Feb. 6 report. Costco’s exposure to a higher income customer base allows it to “screen the best in the club sector to expected spring tax stimulus, especially in light of COST’s big-ticket gen merch assortment,” he said. The stock is well liked on Wall Street, attracting buy or strong buy ratings from 25 of 38 analysts. Consensus price targets call for about 6% stock upside over the next year. BlackRock , Hershey Co . and Waste Management also made Wolfe’s list of emerging dividend aristocrats. —CNBC’s Michael Bloom contributed reporting.
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Wednesday, June 10
