Market Overview: Dividend Growth Outside AI Themes
An analysis titled "Beyond AI: Where Investors Can Still Find Dividend Growth in 2026" was published by Investing.com PH, Canada, and US regarding market opportunities outside of Artificial Intelligence themes for the year 2026.
According to reported data from Wall Street Horizon, 31% of global firms increased their dividends in a specific quarter. This figure represents an increase from 30% recorded in Q2 2025.
S&P 500 Yield and Goldman Sachs Projections
Reported analysis indicates that the S&P 500 dividend yield has reportedly sunk toward all-time lows near 1%. Conversely, Goldman Sachs projects an S&P 500 target level of 8,000 for the market.
The report notes that international dividend stocks delivered 35% returns year-to-date in 2025. This performance offered diversification with only a 3% tech allocation compared to 33% for U.S. markets.
Banking Sector Performance
JPMorgan Chase & Co (JPM) and Bank of America experienced strong performance in 2025, benefiting from higher interest rates through mid-2025 and deregulation. Banks with strong deposit franchises are expected to maintain profitability as rates stabilize.
Oil and Gas Sector Dynamics
Oil and gas companies face volatility in WTI and Brent crude markets, which may lead them to prioritize shareholders over risky capital expenditure projects. Verified data indicates that Brent and WTI crude oil have recently dipped into the $70s per barrel.
Consumer Staples: PepsiCo Inc and Coca-Cola
PepsiCo Inc is highlighted for its stable dividend history, innovative approach, and global market reach as a compelling option for consistent returns. Additionally, Coca-Cola is noted for strong brand recognition and a global distribution network ensuring steady income flow.
Utilities: NextEra Energy
NextEra Energy is cited as the nation's largest producer of renewable energy and largest utility. Utilities with exposure to data center growth may offer 4-6% yields plus growth.
Real Estate Investment Trusts (REITs)
Realty Income (O) is identified as a top dividend stock for July 2026, with an approximate yield of 5.1%. The company raised its full-year 2026 Adjusted Funds From Operations (AFFO) guidance to $4.41–$4.44 per share and increased its investment volume target to $9.5 billion.
Realty Income has a history of 115 consecutive quarterly dividend increases.
Pharmaceuticals: AbbVie
AbbVie (ABBV) is listed as a top dividend stock for July 2026, with an approximate yield of 3.3%.
Telcommunications Sector
AT&T and Verizon are noted for reliable dividend payments and the rollout of 5G technology.
S&P/TSX Composite High Dividend Growth Index Methodology
The S&P/TSX Composite High Dividend Growth Index is cited as a method where positions are weighted by yield based on forecasted dividend-yield growth.