Top 5 dividend stocks to watch in 2026

What are dividend stocks?

Dividend stocks are shares of companies that pay a sum of money to their shareholders – this is known as a dividend. It’s typically a percentage of the company’s profits and can be paid once-off or regularly, such as quarterly. The board of directors ultimately determines how much to pay in dividends.

In addition to the hope that the share price will rise, dividends enable stock traders to earn money from their investments.

What percentage of the profits do investors get?

The amount of money stock traders receive in a dividend depends on how much stock they own – the number of shares they have invested in a particular company.

Do all public companies pay dividends?

Not all public companies pay dividends. Some prefer to reinvest their profits back into the business to drive growth, so that the share price will rise.

Companies in a high-growth phase of their development will often choose to reinvest their profits to keep expanding.

Advantages of dividend stocks

The main advantage of stock trading dividend stocks is that you’ll see a return on your investment at some point, either once-off or at regular intervals.

In addition, companies that pay dividends tend to be well-established, so they’re often a less risky investment. However, all investments come with inherent perils, so a risk management strategy is crucial.

If you reinvest your dividends into your stock, you’ll benefit from compounded growth, which occurs when your returns generate additional returns. 

Disadvantages of dividend stocks

The risks of trading dividend stocks are important to be aware of.

For starters, a dividend is never guaranteed; companies might choose to stop dividend payments when the business is struggling financially or if there’s economic turmoil.

Similarly, companies that abruptly stop or reduce dividends might well be under financial strain, and the share price could subsequently drop because of this.

Finally, as interest rates rise, dividends can become worth less, particularly when compared with government securities.

Top 5 dividend stocks to watch in 2026

Let’s look at five global dividend stocks you’ll want to keep an eye on in 2026.

Overview of the dividend stocks in this article

The stocks mentioned in this article are available through IG as follows:

CFD trading

All the companies in our list can be CFD traded through us.

Stock trading

The companies in this list that you can stock trade with us are:

• Verizon Communications
• Pfizer
• M&G

All figures are accurate as of 30 March 2026.

1. Verizon Communications Inc (NYSE: VZ)

Industry: Communications

Dividend yield: 5.63%¹

Market cap: US$212.19 billion²

Verizon is a titan in the global telecommunications sector, primarily operating in the US. Its business model is built on providing essential wireless and wireline services to millions of consumers, businesses and government agencies. The company generates most of its revenue from recurring monthly subscriptions, which creates a highly predictable cash flow.

Verizon has invested heavily in its high-speed 5G network infrastructure, positioning itself as a premium provider in a market where reliable data connectivity has become a non-negotiable utility for modern life.

Over the past six months, the company has focused on expanding its broadband footprint through its fixed wireless access offerings. This strategic push is designed to capture market share from traditional cable providers by offering high-speed home internet over its existing cellular network.

While the telecommunications industry remains highly competitive, Verizon has managed to maintain its market-leading position while successfully navigating a period of higher interest rates that typically impacts capital-intensive businesses.

Highlights:

• Verizon represents a classic defensive income play. The company has a long history of increasing its payout annually, supported by the steady nature of mobile phone and internet bills
• While the stock price may not experience the rapid growth seen in the technology sector, the stock is often favoured by those seeking a reliable yield from a company with a massive, established customer base and significant barriers to entry
• The stock price has increased by 15.26% over the past six months³

2. Pfizer Inc (NYSE: PFE)

Industry: Health technology

Dividend yield: 6.36%⁴

Market cap: US$153.76 billion⁵

Pfizer is one of the world's premier biopharmaceutical companies, focused on the discovery, development and manufacture of medicines and vaccines. Its business model relies on a robust research and development pipeline and the successful commercialisation of high-value treatments across oncology, immunology and rare diseases.

Following a period of extraordinary growth driven by global health needs, the company has transitioned into a new phase of its corporate strategy, using its significant cash reserves to acquire innovative biotechnology firms to ensure long-term revenue growth.

Recent news from the company has been dominated by the successful integration of a major oncology-focused acquisition, which has significantly expanded its cancer treatment portfolio.

Pfizer has also seen positive clinical trial results for several new pipeline candidates, particularly in the areas of respiratory health and metabolic disorders.

Highlights:

• Stock traders typically look to Pfizer for its combination of a solid yield and the potential for capital appreciation through scientific innovation
• The company’s commitment to its dividend remains a central pillar of its value proposition
• Over the past six months, its stock price has increased by 13.95%⁶

3. Eni SpA (MIL: ENI)

Industry: Energy minerals

Dividend yield: 4.39%⁷

Market cap: €69.98 billion⁸

Eni is a major Italian integrated energy company with a significant global presence. Its business model spans the entire energy value chain, from the exploration and production of oil and natural gas to refining, chemicals and power generation.

A key part of its modern strategy is a ‘satellite’ model, where it creates independent, specialised subsidiaries focused on specific areas like renewable energy and sustainable mobility. This allows Eni to attract external capital and unlock value from its transition-focused assets while maintaining its core strengths in traditional energy production.

The last six months have seen Eni make significant progress in its transition goals. The company recently announced the successful start-up of several large-scale renewable energy projects in Europe and Africa, further diversifying its energy mix.

Highlights:

• In its traditional business, Eni has secured new long-term gas supply agreements, reinforcing its role in European energy security
• The company has also been active in the mergers and acquisitions market, recently finalising the sale of certain non-core upstream assets to sharpen its focus on high-performance regions
• Eni is often considered an attractive prospect for stock traders who want exposure to the energy sector but are also looking for a company with a credible decarbonisation plan
• Over the past six months, its stock price has risen by 64.15%⁹

4. M&G Plc (LSE: MNG)

Industry: Finance

Dividend yield: 7.51%¹⁰

Market cap: £6.47 billion¹¹

M&G is a leading international savings and investment business headquartered in London. It operates a dual-pronged business model that combines a large-scale asset management arm with a traditional life insurance and retirement business. This structure enables the company to manage its own insurance assets while also offering a wide range of investment products to external retail and institutional clients.

By managing both the ‘manufacture’ and ‘distribution’ of financial products, M&G creates multiple revenue streams through management fees and insurance premiums.

Recent updates from the company highlight a successful period of capital generation and asset inflows. Despite a volatile period for global financial markets, M&G has reported resilient performance in its wholesale and institutional divisions.

The company has also made strides in its digital transformation, launching new platforms to improve client engagement and reduce administrative costs.

Highlights:

• For stock traders, the company is primarily viewed as a high-yield financial stock with a focus on capital return
• The company’s capital-light growth strategy in asset management, paired with the steady cash flows from its legacy life insurance books, provides a strong foundation for its dividend
• Its stock price has increased by 6.74% over the past six months¹²

5. China Shenhua Energy Co Limited (HKEX: 1088)

Industry: Energy minerals

Dividend yield: 7.37%¹³

Market cap: HK$1.12 trillion¹⁴

China Shenhua is a world-leading, integrated energy company based in China.

Its unique business model sets it apart from many of its peers, as it operates not only coal mines but also a massive network of power plants, railways, ports and shipping fleets. This vertical integration allows the company to control almost every step of the energy production and delivery process, significantly reducing its exposure to external logistics costs and fluctuations in the coal market.

It essentially functions as a self-contained energy ecosystem that supplies a critical portion of the world's second-largest economy.

Recent news has highlighted China Shenhua’s investment in smart mining technologies and its expansion into solar and wind power projects as part of a broader shift toward a more balanced energy portfolio.

While coal remains its primary driver, the company’s expansion into renewables is gaining momentum.

Highlights:

• China Shenhua is often a top pick for stock traders seeking high yields from the Asian market
• The company is well-known for its exceptionally generous payout policy, frequently returning a large majority of its earnings to shareholders
• Because it provides a fundamental service – electricity – it tends to remain profitable even during broader economic cycles
• Over the past six months, its share price has risen by 28.44%¹⁵

How to trade dividend stocks with IG UAE

CFDs

1. Open a CFD trading account with IG UAE
2. Search for dividend stocks on the IG platform
3. Decide whether to go long (buy) or short (sell)
4. Choose your position size
5. Set stop-loss and limit orders
6. Place your trade and monitor it

Stock trading

1. Open a stock trading account with IG UAE
2. Search for dividend stocks
3. Choose the stock you want to buy
4. Determine how many stocks you want to purchase
5. Place your order
6. Monitor your investment and collect any dividends

FAQs about dividend stocks

Footnotes

1. TradingView, March 2026
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