These stocks that pay dividends have served as a 'safe haven' for investors this year

Main Insights

• Dividend aristocrats, which are select S&P 500 companies known for consistent dividend payments, have delivered stronger returns than the overall index in 2026.

• Heightened global tensions and concerns about the impact of artificial intelligence have led investors to seek out stocks considered more stable at the start of this year.

Are dividend stocks making a comeback?

It appears so. As uncertainty from geopolitical events and AI-related disruptions unsettles the markets, many investors are turning to stocks viewed as safer and resistant to AI risks—including those that offer dividends.

The dividend aristocrats are a group of S&P 500 companies that have increased their dividends every year for at least 25 consecutive years. In 2026, these companies have outperformed the broader market, achieving a total return of around 7%—including dividends—while the main index has remained mostly flat.

Why Investors Should Care

Dividend aristocrats, which are large and well-established firms, often attract investors during turbulent market conditions due to their perceived reliability and quality.

Although these companies do not always surpass the S&P 500, last year their total return was about 7%, compared to the index’s 18%. Despite this, they are still regarded as a solid option for investors seeking stability during periods of increased market volatility, especially when the market mood shifts to a risk-averse stance.

Wolfe Research analysts recently described dividend aristocrats as their preferred dividend strategy during times of market stress. They noted that this group tends to outperform throughout various market cycles, particularly during economic downturns, making them a safe haven for investors.

There are currently 69 companies classified as dividend aristocrats. Many are well-known brands, such as Walmart (WMT), McDonald's (MCD), and Clorox (CLX). These stocks have notably outperformed the S&P 500 in recent weeks.