Emerging Dividend Stars Offer Safe Haven in 2026

In 2026, investor anxiety surrounding artificial intelligence's potential to disrupt various business models has cast a shadow over the stock market. The S&P 500 has experienced minimal growth, while major software companies have seen substantial declines. This uncertainty has led investors to seek refuge in more stable investments, particularly those offering consistent dividend payments.

The ProShares S&P 500 Dividend Aristocrats ETF, which comprises companies with a long history of increasing dividends, has demonstrated resilience, advancing over 9% year-to-date. This performance highlights a shift towards defensive strategies during times of market volatility.

Wolfe Research identifies "emerging dividend aristocrats" – companies that have raised dividends for at least 15 years – as attractive investment options. These companies are seen as a good place to "hide" during economic slowdowns or recessions, as they have historically outperformed during such periods.

Among these emerging names, Verizon Communications stands out, having raised its dividend for 19 consecutive years. Despite a recent price surge, analysts like those at Daiwa Capital Markets see its stable profits and predictable financial performance as a strong draw for anxious investors.

Costco Wholesale, also on Wolfe's list, has a consistent record of raising dividends over the past two decades. Its stock has gained 14% in 2026, and JPMorgan notes its potential to benefit from a stimulated consumer environment due to its customer base and product assortment.

Other notable companies identified by Wolfe Research as emerging dividend aristocrats include BlackRock, Hershey Co., and Waste Management, all recognized for their commitment to returning value to shareholders through increasing dividends.