How We’re Finding Dividend Stocks in 2026

Merck & Co. is up 43.1% since joining DI, while Oshkosh has returned 64.1%. See what the strategy looks for.

Hello Investor, 

While high dividends can be tempting, smart investors know that chasing them can be risky. That’s why AAII created the Dividend Investing (DI) model portfolio, powered by a data-driven strategy that focuses on companies with a track record of sustaining and growing dividends for long-term investors. 

The results speak for themselves: Not only is the DI model portfolio up 14.9% year to date as of August 25, 2026, but it currently has a 2.3% dividend yield, compared to only 0.9% for the iShares Dow Jones U.S. ETF (IYY) over the same time period. 

But that’s not all. The DI strategy has also uncovered stocks with impressive price returns, such as Merck & Co. Inc. (MRK), +43.1% since being added to the portfolio this year.  

If you have a few minutes, I’d like to share those results, a few more honorable mentions from the DI Ideas list and some insight into how the DI strategy identified them, plus how you can use the same approach in your own research. 

The DI model portfolio isn’t just about producing strong returns; it’s also about delivering consistent income to its followers. Let’s take a look at some of the stocks that have delivered big returns. 

Oshkosh Corp. (OSK) designs and manufactures a wide variety of what it describes as “purpose-built vehicles and equipment.” These include lifts and telehandlers equipment, firefighting vehicles, waste disposal trucks, and military vehicles, to name a few. The stock is up +64.1% since being added last year, and it raised its dividend +11.8% earlier this year. 

Merck & Co. is a global pharmaceutical company known for developing medicines and vaccines across areas including oncology, infectious diseases and cardiovascular health. It was added to the portfolio on January 15, 2026, and has since risen +43.1% in price. Plus, it has 2.2% yield. Recently, the company announced a successful late-stage trial of its breakthrough melanoma treatment. 

One of the highest dividend yields in the portfolio belongs to CME Group Inc. (CME), which operates one of the world’s largest derivatives marketplaces, offering futures and options across interest rates, equities, commodities, currencies and other asset classes. The company has a 4.1% dividend yield. CME Group was added to the portfolio almost two years ago and has a +32.7% price return since addition. 

Standout Stocks on the DI Ideas List

Both the DI model portfolio and the DI Ideas list offer a strong lineup of dividend growth stocks. 

The DI Ideas list currently includes 29 stocks that meet the DI strategy’s strict criteria. However, only five of these are currently in the model portfolio, which is capped at 24 holdings. When a stock is removed from the portfolio, we look to the Ideas list for potential candidates to take its place. 

Here are a few stocks from the DI Ideas list that are notable for having some of the highest dividend yields: 

• RLI Corp. (RLI), with a 7.3% yield 

• Dillard’s Inc. (DDS), with a 4.9% yield 

• Comcast Corp. (CMCSA), with a 4.9% yield 

Performance data as of 8/25/2026. 

With AAII Dividend Investing, you get a smarter way to analyze dividend stocks, zeroing in on strong fundamentals and staying power, not temporary spikes. 

If you want to follow the 24-stock DI model portfolio, explore its watchlist of additional dividend ideas that meet our strict criteria, and use premium tools like the Dividend Screener and Dividend Grader to evaluate your current dividend stocks as well as discover new ones — plus get weekly unbiased commentary from me, Charles Rotblut — we have an exclusive offer only available to a select group of fellow investors, like yourself. 

You can explore AAII Dividend Investing for a full month for just $2. DI is regularly priced at $249 per year, but it’s only $2 for 30 days if you join today. Offer expires tomorrow, August 27, 2026, at midnight Central Time.  

Built on the three pillars of dividend investing — valuation, growth and financial strength — the Dividend Grader assigns grades to stocks on a scale from A through F in each of the following areas, simplifying analysis. 

1. Dividend Valuation: Assesses a stock’s price versus intrinsic value to avoid overpaying and reduce risk of low yields. 

2. Dividend Growth: Evaluates a company’s history of increasing dividends, highlighting firms that consistently reward investors. 

3. Dividend Strength: Analyzes financial stability, including debt levels, earnings and the sustainability of the dividend, to identify reliable dividend payers. 

The DI strategy helps investors select stocks that truly make sense for their portfolio, companies with strong fundamentals backed by data.  

And now is a perfect time to join AAII Dividend Investing, because not only will you be getting our special $2 trial rate for new subscribers, but you’ll also get to follow the DI model portfolio through the next 30 days and see how it builds on its strong momentum into September. And of course, we hope you choose to stay on with us after your one-month trial concludes. 

As a bonus for signing up during our Flash Sale, you’ll also get AAII Member benefits like access to the AAII Journal, AAII Model Shadow Stock Portfolio, investor guides, online community, webinars, local chapters, weekly emails with news and education, and more.  

We sincerely encourage you to take advantage of our two-day Flash Sale. With one of the busiest stretches of the market fast approaching, major earnings announcements ahead and investors returning from summer ready to reposition their portfolios, this is an especially timely opportunity to put AAII Dividend Investing to work.

Best regards, 

Charles Rotblut, CFA 
Editor, AAII Dividend Investing