With the S&P 500 showing signs of weakness in 2026, income investors face a familiar challenge.
It’s easy to find dividend stocks. Just tick basic filters, and then you have it.
But, it’s even harder to find those that still offer upside- and without overpaying. Buying a solid business at the wrong time can cap returns, even when the yield looks attractive on the surface. Remember, yields aren’t the only thing investors should be looking at. And that’s why timing and conviction matter.
To find these companies, I used Barchart’s Opinion and Opinion Strength indicators, which use short-term technical signals to gauge market momentum, and paired them with strong analyst consensus. This approach helps me find dividend stocks that are paying income today while still showing signs of strength and potential.
I used Barchart’s Stock Screener tool to get the list using the following filters.
Annual Dividend Yield: Left blank so I can sort it later from highest to lowest.
Overall Opinion Strength: Strong – Top 1%. A stronger signal offers a stronger opinion.
Overall Opinion %: Buy. Barchart’s short-term technical indicator signals the overall opinion, indicating whether the stock is bullish or bearish.
Current Analyst Rating: 4.5 – 5. Companies that are “Strong Buy” according to Wall Street.
Number of Analysts: 16 or higher. The more analyst coverage, the greater the confidence rating.
I hit the screen and got 5 results. I will cover three with the highest forward annual dividend yield.
Let’s start with the first Dividend Stock:
Permian Resources Corp drills for oil and natural gas in the Delaware Basin, one of the most productive oil regions here in the U.S. The company operates as a pure upstream energy business focused on finding and producing oil and gas.
In its most recent financials, the company reported that sales rose 9% YOY to $1.3 billion. However, its net income fell 85% to $59 million due to higher operating expenses and lower commodity prices.
Still, Permian Resources has increased its dividends for two consecutive years, paying a forward annual dividend of $0.60, which translates to a yield of around 3.7%.
Meanwhile, Barchart Opinion indicates a 100% overall buy average with maximum strength, suggesting bullish momentum across the short-, medium-, and long-term time frames.
Plus, a consensus among 24 analysts rates the stock a “Strong Buy”, with an upside of as much as 28% should it reach the $21 high target price.
The second Dividend Stock on my list is Valley National Bancorp. The company offers banking services, including loans, deposits, and cash management, to individuals and businesses, with a primary focus on commercial lending to small- and mid-sized companies.
In its recent quarterly financial report, sales were down 4% YOY to $827 million while its net income increased 67% to $163 million. Out of that, the company pays a forward annual dividend of $0.44, translating to a yield of approximately 3.3%.
Similar to Permian Resources, Barchart Opinion shows an overall 100% buy average with maximum strength, indicating favorable momentum. It also belongs to the top 1% of stocks in both strength and direction.
Meanwhile, a consensus among 15 analysts rate the stock a “Strong Buy”. The high target price is $16, suggesting a potential 18% upside from current levels.
The last stock on my list is a Dividend King: Coca-Cola, a company whose products are familiar to consumers almost everywhere. It has a wide portfolio of beverages, including its namesake softdrink. In its most recent financials, the company reported that sales rose 5% YOY to $12.5 billion. Its net income also increased 30% to $3.7 billion.
Coca-Cola has also increased its dividends for 63 consecutive years, making it very popular among income investors. Today, it pays a forward annual dividend of $2.04, translating to a yield of around 2.6%. It may not be the highest in this list, but it’s definitely the most stable and resilient.
Meanwhile, Barchart Opinion has an overall buy average of 88%, with high strength and direction scores, indicating that there is still further to go.
On the other hand, a consensus among 24 Wall Street analysts rates the stock a “Strong Buy”, suggesting there’s as much as 27% potential upside should it achieve its $100 high target price.
These three quality dividend stocks have the analyst and Barchart Opinion scores on their side, suggesting bullish momentum across the short, medium, and long terms.
That said, technical indicators and analyst ratings are only guides, not the whole story. Always do your own research and decide whether the underlying business and risks align with your investment goals.
On the date of publication, Rick Orford 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
