Dividend Stocks to Ride Out Market Volatility
Johnson & Johnson (JNJ) and ExxonMobil (XOM) are two of the top dividend stocks to consider buying for the second half of 2026, according to a recent analysis. Both companies have a long history of consistent dividend growth and have recently seen significant changes that could lead to further increases in their payouts.
J&J has been one of the Dividend Kings, with at least 50 consecutive years of dividend growth. The company has raised its quarterly cash payout for the past 65 years, with annual increases averaging around 5.7% over the last decade. With a forward dividend yield of approximately 2%, JNJ's dividends could become an increasingly significant contributor to total returns.
In addition to its strong dividend history, J&J has also made significant changes in recent years that could lead to further growth. The company has jettisoned slower-growing segments and pivoted towards faster-growing areas of healthcare, such as oncology. Last quarter, the company's Tremfya psoriasis treatment reported 73% sales growth, generating $2 billion in revenue.
ExxonMobil (XOM) is another top dividend stock to consider buying, with a forward yield of around 2.6%. The integrated oil and gas company has raised its dividend for 43 years in a row and is on track to reach Dividend King status within the next seven years.
XOM's earnings growth is expected to average 13% between now and 2030, driven by cost-cutting, disciplined capital spending, and a pivot into new markets like carbon capture. With forecasts suggesting ample cash flow for continued dividend increases, XOM's steady yield could result in strong total returns.
Coca-Cola (KO), another Dividend King, also presents an attractive opportunity with its 1.9% forward dividend yield and recent strong performance. Berkshire Hathaway's CEO Greg Abel has held onto the company's long-standing equity position, which yields around $675 million in annual dividends to the conglomerate.
With earnings growth expected between 9% and 10% this year, KO could see higher dividend growth and further price appreciation as improved earnings sustain its current high-20s forward valuation.