Hey it’s Zach,
I’ve got a quick bonus update for you today!
Despite dividend stocks performing well in 2026, several high-quality blue chips look historically cheap right now.
I screened all 168 stocks on my personal watchlist for companies trading above their 90th percentile 5-year dividend yield. Today, I’m sharing 7 dividend stocks trading at historically high yields.
Stock Analysis
7 Dividend Stocks Trading at Historically High Yields
Forward Dividend Yield: 3.66% (95th percentile over 5 years; 98th percentile over 10 years).
Yield Context: The 5-year median yield is 1.59%, making current levels historically elevated.
Dividend Growth & Safety: 5-year CAGR of 13.12% with a 10.14% increase in its most recent raise. The payout ratio remains safe with a 34% FCF payout ratio and 48% earnings payout ratio.
Forward Dividend Yield: 3.90% (99th percentile over 5 years; 100th percentile all-time).
Yield Context: The highest starting yield since 2007, barring the 2009 Financial Crisis peak (2.5%).
Dividend Growth & Safety: 5-year dividend CAGR of 8.32%, though recent growth slowed to 2.5%. 2026 FCF payout ratio sits at 110%, but recent quarterly FCF ($0.72 EPS) suggests cash flows are beginning to recover.
Forward Dividend Yield: 4.31% (98th percentile over 5 years; 99th percentile over 10 years).
Yield Context: Trades at historically high yields while Coca-Cola trades near all-time highs at its 0th percentile yield.
Dividend Growth & Safety: Dividend King with 50+ consecutive years of raises and a 5-year CAGR of 6.6%. Trailing 12-month free cash flow ($9.2B) comfortably covers total dividends paid ($7.8B).
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Forward Dividend Yield: 2.72% (98th percentile over 5 years; 90th percentile over 10 years).
Yield Context: Median 5-year yield is 2.28%.
Dividend Growth & Safety: Decades of annual increases with a 5-year CAGR of 7.59%. Dividend is well-covered with a 71% FCF payout ratio and 59% EPS payout ratio.
Forward Dividend Yield: 3.61% (93rd percentile over 5 years; 97th percentile over 10 years).
Yield Context: Median yield over the last decade sits at 1.84%.
Dividend Growth & Safety: Dividend Aristocrat with a 5-year CAGR of 7.14% and a recent 6.67% dividend hike. Sustainable payment supported by a 65% FCF payout ratio.
Forward Dividend Yield: 2.28% ($5.00/share annual dividend; 97th percentile over 5 years).
Yield Context: 5-year median yield is 1.95%.
Dividend Growth & Safety: High historical dividend growth (257% over 10 years) has slowed to a 4.35% 3-year CAGR. Very safe coverage with a 34.5% FCF payout ratio.
Forward Dividend Yield: ~2.70% (97th percentile over 5 years; fair value over 10+ year view).
Yield Context: 5-year median yield is 2.49%.
Dividend Growth & Safety: Dividend King with over 50 years of raises, though growth is modest (4.59% 5-year CAGR). Exceptional safety with a 64% FCF payout ratio and an 'A' safety rating.
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– Zach
Founder, Dividend Data
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Disclaimer: Dividend Dividend (Dividend Data LLC) is not a professional financial service. All materials released from Dividend Data (Dividend Data LLC) are for educational and entertainment purposes. Dividend Data (Dividend Data LLC) is not a replacement for a professional's opinion. Contributors to the Dividend Data (Dividend Data LLC) might have equities mentioned in the newsletter