economy

January 3, 2026

Bank of America expects a boost in dividends in 2026. These stocks have payouts that beat the market

Bank of America's Savita Subramanian expects stocks’ dividend growth will rise year over year in 2026.

Bank of America expects a boost in dividends in 2026. These stocks have payouts that beat the market

TL;DR

  • Bank of America anticipates dividend payouts to increase in 2026, with an 8% year-over-year growth forecast, following strong EPS growth.
  • The S&P 500's dividend payout ratio is near a record low of 30%, indicating room for companies to raise dividends.
  • Investors are advised to seek companies with dividend yields above market average but not stretched, with a focus on the second quintile of dividend yielders.
  • Highlighted stocks include Reynolds Consumer Products (4% yield), Macy's (3.2% yield), Prologis (3.1% yield), and Exxon Mobil (3.4% yield).
  • These companies have demonstrated positive aspects such as revenue beats, improved guidance, or breaking key resistance levels.

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