Important Points
- Dividend stocks can help investors manage market volatility when headline-driven volatility makes the market feel less volatile than the data suggests.
- Altria, Bristol Myers Squibb and American Electric Power offer different combinations of income, defensive demand and long-term dividend growth.
- Investors should look beyond yield alone and focus on balance sheet reliability, cash flow support and overall profitability potential.
The sector rotation in 2026 was focused on the technology sector and small stocks. But there is tangible evidence that some investors are moving from growth to value in the form of equities.
Despite the feeling that the market is volatile, the value of 1% moves in either direction in the S&P 500 is almost the same. As for the 2% movement, the value is very simple. But the vision can become reality. Ken Fisher of Fisher Investments offers one possible reason for this view: sharp movements often come in clusters, which drive headlines.
Stocks that pay reliable dividends can help investors deal with the emotions created by such topics. The keyword is reliable. Investors should look for companies with a proven track record of increasing dividends over time.
Equity stocks can be less attractive in a long high interest rate environment. However, if the company pays a dividend above the rate of inflation and has the potential for additional capital growth, the total return from these stocks can exceed fixed income investments.
Altria Stock Offers Big Profits With Defensive Appeal
Altria (NYSE: MO ) remains one of the best stocks for investors. As of July 27th, MO had a dividend yield of 5.83% and has raised its dividend for 56 consecutive years. That puts the company in an elite group of stocks known as the Dividend Kings.
The company continues to shift to smokeless products and even traditional (ie, flammable) products generate significant revenue and drive earnings growth, with the most recognized brands in the industry.
The immediate driver of the business can be seen in the year-over-year revenue growth in Q4 2025 and Q1 2026. That shows that consumers are doing what they usually do in times of economic uncertainty.
MO stock has risen significantly since April 2024 and continues to be supported by its 50-day moving average. MO recently traded slightly above its consensus price target and was trading in a range. But that target is likely to rise higher after the company reports earnings.
Bristol Myers Squibb Delivers Profits Despite Patent Cliff Concerns
Healthcare stocks cover many different areas, including the biopharmaceutical industry. Bristol Myers Squibb (NYSE: BMY ) is one of the blue-chip names in this space. The company is the name of blockbuster drugs such as Eliquis and Optivo, which together generated more than $6.1 billion in sales by 2025.
The concern is that both drugs face competition from generics (ie, the patent cliff) in 2028. However, the company will not lose revenue from those drugs, and has a strong pipeline of 50 people in more than 40 disease areas, including oncology, neuroscience, and immunology.
That means BMY's dividend, which has a 4% yield as of this writing, looks safe. It is currently well supported by the company's cash flow and profitability. Bristol Myers has increased its dividend for 17 consecutive years.
However, income investors should pay attention to the dividend growth rate. Developing new drugs is expensive, even for large pharmaceutical companies. It is possible that the company is delaying or stopping its dividend payment.
BMY has delivered a modest return of around 12% over the past five years. However, the stock has rallied since hitting a five-year low in June 2024, rising nearly 60% from that level. At a time when investors are looking for consensus, BMY appears to be a safe, high-yielding option.
America's Electric Power Combines Growing Budget and Demand for AI
American Electric Power (NYSE: AEP) is one of the largest electric utilities in the United States. The company has a diverse history of commerce and industry, including in important states such as Indiana, Ohio, Oklahoma, and Texas.
AEP's stock has risen nearly 51% in the past five years, and most of that growth is from October 2023. The company is playing a key role in modernizing the nation's electric grid. The company has also invested heavily in natural gas, solar, and wind.
In the company's Q1 2026 earnings report, AEP reported that 63 gigawatts (GW) of peak load had gone into contract by 2030. About 90 percent of that demand (up from 56 GW last quarter) is concentrated in Texas and Ohio.
Of the stocks on this list, American Electric Power has the lowest yield of 2.81%. That's a good reminder that, when it comes to finding quality dividend stocks, yield isn't the only thing to consider.
This time around, AEP has increased its dividend for 15 consecutive years, and over the past five years, it has grown that dividend by an average annual rate of more than 5.6%. During that period, AEP delivered a total return of approximately 85%.
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Companies mentioned in this article:
Company
Current Price
Price Changes
Dividend Yield
The P/E ratio
Consensus ratio
Consensus Price Target
Altria Group (MO)
$73.00
+0.0%
5.81%
15.27
Hold on
$70.78
Bristol Myers Squibb (BMY)
$62.68
+1.0%
4.02%
17.61
Hold on
$61.25
| Company | Current Price | Price Changes | Dividend Yield | The P/E ratio | Consensus ratio | Consensus Price Target |
|---|---|---|---|---|---|---|
| Altria Group (MO) | $73.00 | +0.0% | 5.81% | 15.27 | Hold on | $70.78 |
| Bristol Myers Squibb (BMY) | $62.68 | +1.0% | 4.02% | 17.61 | Hold on | $61.25 |
About Chris Markoch
Experience
Chris Markoch has been an associate editor and contributing writer for DividendStocks.com since 2018.
- Professional Background: Christopher Markoch is a freelance writer and market analyst with over 30 years of marketing communications experience, including working with financial services firms and banks. His unique combination of communication skills and market knowledge allows him to dissect complex financial topics for individual investors.
- Confirmation: He holds a Bachelor of Arts degree in Business and Organizational Communication from the University of Akron in Akron, Ohio.
- Financial Experience: Chris has been an editor and contributing writer for DividendStocks.com since 2018 and has written for InvestorPlace. He began writing about finance and investing in 2017, bringing a strong focus on helping readers make honest, informed decisions.
- Writing Focus: He specializes in investing, dividend-paying stocks, and retirement-focused strategies. His work is aimed at individual investors who want to build stable, income-generating portfolios.
- How to Invest: Chris emphasizes the importance of investing in income while maintaining a focus on context and clarity. He believes that fundamentals and technology are important, but they are only truly useful when paired with an understanding of the company's story. That perspective shapes both his investment decisions and the guidance he gives students.
- Motivation: “A story about a company or a stock is important to me,” Chris said. “Fundamentals or technical actions are interesting, but for no reason, they have no context for retail investors. That's what I aim to deliver.”
- Fun fact: Christopher credits thought leaders such as Keith Fitz-Gerald and Shah Gilani for their keen market insights.
- Areas of Expertise: Value investing, retirement stocks, dividend stocks, individual investing
Education
Bachelor of Arts in Business and Organizational Communication, The University of Akron, Akron, Ohio
Previous Experience
InvestorPlace
