Two years of powerful equity gains have left many investors richer on paper but still unsure where to find income that they can actually rely on. Over that span, the S&P 500 ($SPX) has climbed 46%, including more than 17% in just the past 12 months, with much of the gain led by mega‑caps that don’t prioritize dividends. As a result, many investors are rotating from story stocks toward companies that consistently raise dividends and can help rebuild dependable income.
That is where the market’s most seasoned Dividend Kings come in. These companies have 50‑plus years of uninterrupted payout increases and have become a natural group to choose from for investors who want rising income. From within this ultra‑select group, three names rise to the top for 2026. Each one boasts a long dividend growth streak and strongly positive analyst ratings. Let’s dive in.
Nucor (NUE) is a U.S. steel manufacturer based in Charlotte, North Carolina, with operations spanning sheet, bar, structural, and steel products. Its status as a Dividend King is backed by its forward annual dividend of $2.24 per share and 1.33% yield, supported by a payout ratio of just 30.32%.
NUE stock trades near $164 as of Jan. 12, up almost 1% year‑to‑date (YTD) and 39% over the past 52 weeks.
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Nucor has a market capitalization of approximately $37.5 billion, a trailing price-to-earnings (P/E) ratio of 22.7 times, and a price-to-book ratio of 1.75 times, which is lower than the sector median. This suggests that investors are paying a premium for earnings while still receiving a discount on balance-sheet value relative to peers.
The company’s fundamental story is also supported by strong execution. Nucor reported third-quarter 2025 earnings on Oct. 27 with diluted EPS of $2.63 versus estimates of $2.15, a positive surprise of 22% that showed resilient demand and disciplined cost control.
That momentum carries into expectations for the current quarter, where the consensus sees $1.89 in EPS for Q4 2025 versus $1.22 a year earlier, implying 55% year‑over‑year (YOY) growth. That’s even as full‑year 2025 EPS is projected to decline 10% to $7.98 from $8.90 in 2024 as pricing normalizes from prior peaks.
NUE stock is also backed by an upbeat view from Wall Street. The consensus analyst rating currently sits at a “Strong Buy” from 14 surveyed analysts, with an average price target of $178.83, implying roughly 9% upside from the current price.
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Coca‑Cola (KO) is a global non‑alcoholic beverage company headquartered in Atlanta, Georgia, with a market value of roughly $303 billion. Its Dividend King credentials are backed by a forward annual dividend of $2.04 per share and a 2.94% yield, with a dividend payout ratio of 67.64%.
KO stock currently sits at about $71 per share as of Jan. 12, up almost 1% YTD and roughly 15% over the past 52 weeks.
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This share price embeds a forward P/E of 21.5 times and a price-to-sales (P/S) ratio of 6.38, which are both above the sector median. That indicates investors are willing to accept a notable premium to own the brand.
Coca‑Cola’s income story intersects with a management transition. This succession plan will see Chief Operating Officer Henrique Braun succeed James Quincey as CEO in 2026, a move designed to keep strategic continuity around brand investment, disciplined pricing, and capital allocation.
The company’s recent financial performance shows why that continuity is important. Coca-Cola’s latest reported quarter delivered revenue of $12.46 billion, representing 5% YOY growth. The company also generated free cash flow of $4.56 billion, a cash‑generation swing that represents precisely why KO has the flexibility to keep raising its dividend while funding marketing, innovation, and buybacks.
KO’s bottom‑line trajectory aligns with that narrative. This Q3 2025 earnings print showed EPS of $0.82 versus a $0.78 consensus, a 5% beat that reflects margin control as well as stable volumes. Expectations for Q4 2025 foresee EPS of $0.56, just above $0.55 a year earlier, with full‑year 2025 EPS projected at $2.98 versus $2.88 in 2024, implying growth of 1.8% for the quarter and 3.5% for the year.
Coca‑Cola’s standing as one of the three best dividend stocks to buy for 2026 is reinforced by a consensus “Strong Buy” rating from 24 analysts with coverage. The average price target of $80.83 implies roughly 14% potential upside from the current price.
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Walmart (WMT) is a global discount and e‑commerce retailer headquartered in Bentonville, Arkansas, with a market value of roughly $912 billion. It is supported by a forward annual dividend of $0.94 per share and a 0.84% yield, backed by a payout ratio of 35.43%.
WMT stock changed hands at about $117 as of Jan. 12, up 5% YTD and 25% over the past 52 weeks.
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The stock has a trailing P/E of 44.5 times and a forward P/E of 43.5 times. Both of these multiples come in well above the sector median, signaling that investors are willing to pay a substantial premium for Walmart’s scale.
Walmart’s strategic moves help explain why it features prominently among Dividend Kings. WMT stock recently shifted its primary listing to the Nasdaq exchange, as part of a broader push to potentially attract a fresh cohort of institutional and index buyers. The firm is also preparing for a CEO transition in which long‑time CEO Doug McMillon is set to retire and be succeeded by John Furner, who is the current Walmart U.S. CEO.
Walmart’s earnings profile so far supports the market’s patience. The company’s most recent reported quarter showed EPS of $0.62 against expectations of $0.61, a 1.64% positive surprise that pointed to steady margin performance in a tough consumer environment.
Those results set the stage for the next print on Feb. 19, where the consensus looks for Q4 EPS of $0.72 versus $0.66 a year earlier and full‑year fiscal 2026 EPS of $2.63 compared with $2.51 in the prior year. These estimates imply YOY growth of 9% for the quarter and 5% for the year.
That balance between dependable income and earnings growth is reflected in a consensus “Strong Buy” rating from 37 analysts and an average price target of $124.40, which implies roughly 6% potential upside from the current price.
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If the goal for 2026 is dependable income that can grow, the answer is Dividend Kings with real analyst support, such as NUE, KO, and WMT stock. Each of these names has a long dividend‑growth record, and their payout profiles are built for consistency rather than flashy yield. All told, these shares look more likely to grind higher than break down as long as earnings hold up, with dividends doing the heavy lifting for total return.
On the date of publication, Ebube Jones did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
