Although Fed chair Powell expressed caution on Tuesday by highlighting the need for the central bank to balance controlling and supporting the labor market, investors still that the Federal Reserve will cut rates two more times before the year’s end.
Looking ahead to 2026, market forecasts suggest further rate cuts, although the specifics are currently unclear.
Falling interest rates reduce yields on bond and money-market investments, making dividend-paying stocks an attractive alternative for guaranteed passive income.
The key advantage of dividend stocks is consistency: they pay income regardless of market swings. Even if a stock price drops, the dividend amount typically remains unchanged.
This stability brings secondary benefits. Companies that pay steady dividends often attract long-term investors, creating a more stable shareholder base. That stability helps them weather market corrections better than many growth-focused peers.
With economic signals turning softer and rates likely to decline, dividend stocks stand out as a compelling area to watch right now.
How to spot the best dividend stocks to buy right now?
To identify the best dividend stock opportunities of the moment, we turned to the Investing.com screener, in search of stocks meeting the following criteria:
- Market capitalization in excess of $1 billion
- Dividend yield in excess of 5%.
- Dividend payments for more than 10 years
- Positive dividend growth over 3 and 5 years
- Upside potential of over 10% according to InvestingPro Fair Value
- InvestingPro health score above 2.5/5
InvestingPro Fair Value calculates an intelligent average of several recognized valuation models for each stock on the market. The Health Score, on the other hand, is based on several financial metrics and peer comparisons to assess the financial strength of companies.
Please note that although the basic functions of the Investing.com screener are accessible to all, we have utilized metrics reserved for InvestingPro members, specifically the Pro+ plan.
Not an InvestingPro member yet? Click below to subscribe now and take advantage of all available filters and much more.
If you are a Pro+ member and would like to reproduce this search, here are the parameters to enter in the screener:
This exact search enabled us to identify 7 stocks:
These stocks have annual dividend yields ranging from 5% to 11.2%.
They are also undervalued by between 13.2% and 24.7% according to InvestingPro Fair Value, which means they also have interesting upside potential, in addition to solid dividends.
Are you an InvestingPro, Pro+ plan member? Click here to access this screener search.
If you’re not already an InvestingPro member and you’d like to know the stocks on this list, you can subscribe using the link below:
Running a deeper search for dividend stocks
As interest rates are set to fall, dividend stocks will become increasingly attractive, and the stocks identified in this article could be among the best dividend opportunities on the US market.
However, there are other ways of finding the best dividend stocks, including the 8 specialized predefined dividend searches offered on the Investing.com screener:
Note that two of these predefined searches are available free of charge, while six are reserved for InvestingPro members with the Pro+ plan.
Finally, please note that the features mentioned in this article are far from being the only InvestingPro tools useful for market success. In fact, InvestingPro offers a comprehensive range of tools that enable investors deal with stock market volatility, regardless of the conditions. These include:
- AI-managed stock market strategies, re-evaluated monthly
- 10 years of historical financial data for thousands of global stocks
- A database of positions held by investors, billionaires and hedge funds
- member-only analysis and stock-picking articles, in which our analysts “do the work for you” and propose turnkey stock selections
- And many other tools that help tens of thousands of investors outperform the market every day!