Retirees Are Winning Big in 2026: 3 Popular Dividend Stocks Are Soaring

"Retirees watching their portfolios in early 2026 have reason to smile. While tech stocks stumble, dividend stalwarts are delivering steady cash flow and capital appreciation. Consumer Staples (XLP) is up 13.3% year-to-date, while Technology (XLK) has dropped 2.1%. In a year when growth stocks are catching their breath, dividend payers are sprinting ahead. These are blue-chip businesses with decades of dividend increases, fortress balance sheets, and predictable income streams."

"The company beat Q4 earnings with adjusted EPS of $2.59 versus the $2.54 estimate, though revenue of $9.76 billion missed the $9.87 billion consensus. Free cash flow surged 33% year-over-year to $2.51 billion, and orders jumped 23% organically. CEO Vimal Kapur noted: "We concluded 2025 with strong results that exceeded the high end of our guidance for adjusted sales and adjusted EPS.""

"Honeywell has raised its dividend for 23 consecutive years, with the 2025 annual payout reaching $4.58 per share, up 4.8% from 2024's $4.37. At a current yield of 1.9%, it's the lowest yielder of the three, but 574% dividend growth since 1999 shows long-term compounding power. The forward P/E of 23x reflects restructuring optimism. The spin-off of business units is expected to complete over the coming quarters, adding complexity to the near-term outlook."

Dividend stalwarts have delivered steady cash flow and capital appreciation in early 2026, outpacing technology. Consumer Staples (XLP) is up 13.3% year-to-date while Technology (XLK) has dropped 2.1%. Three Dow components favored by retirees are evaluated on year-to-date performance, dividend reliability, and cash generation. Honeywell International (HON) is up 23.1% year-to-date but faces restructuring uncertainty as it splits into automation and aerospace businesses, potentially unlocking value while adding near-term complexity. Honeywell beat Q4 adjusted EPS estimates, saw free cash flow rise 33% to $2.51 billion, and reported 23% organic order growth. Honeywell has increased its dividend for 23 consecutive years, with a 2025 payout of $4.58 and a 1.9% yield. Chevron delivered a 19.1% year-to-date return.

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