10 Top-Performing Dividend Stocks

Dividend-paying stocks that combine healthy balance sheets with hefty yields can provide steady income, cushion against market downturns, and grow investments at a healthy clip. In the second quarter of 2026, the top-performing dividend payers included healthcare company CVS Health CVS, asset management firm Franklin Resources BEN, and tools and accessories firm Stanley Black & Decker SWK.

To find the quarter’s best-performing income-focused stocks, we screened the Morningstar Dividend Leaders Index, which tracks the 100 highest-yielding stocks from a broad basket of consistent dividend payers.

The Top-Performing Dividend Leaders of Q2

1. CVS Health CVS
2. Franklin Resources BEN
3. Stanley Black & Decker SWK
4. MSC Industrial Direct MSM
5. Sirius XM Holdings SIRI
6. Skyworks Solutions SWKS
7. Reynolds Consumer Products REYN
8. T. Rowe Price Group TROW
9. Fifth Third FITB
10. Ford F

In the second quarter, the Dividend Leaders Index fell 3.18%, while the broad Morningstar Dividend Composite Index gained 7.27%. In the 12 months leading up to June 30, the Dividend Leaders Index gained 21.48%, and the Dividend Composite Index gained 20.36%. The overall US stock market, as measured by the Morningstar US Market Index, gained 15.52% on the quarter and 22.55% on the year.

Yields and Metrics for Q2’s Best-Performing Dividend Stocks

CVS Health

Healthcare plans company CVS rose 45.26% in the second quarter and gained 53.83% over the past 12 months. Trading at $103.45, its stock has a forward dividend yield of 2.57%. CVS pays investors an annual dividend of $2.66 per share. The stock, which has no economic moat, is trading near its fair value estimate of $105 per share, leaving it with a Morningstar Rating of 3 stars.

Franklin Resources

Asset management firm Franklin gained 42.26% in the second quarter and climbed 44.99% over the past 12 months. The stock’s $33.27 price gives it a forward dividend yield of 3.97%. Franklin pays investors an annual dividend of $1.32 per share. With a fair value estimate of $30 per share and no economic moat, the stock is 11% overvalued and has a Morningstar Rating of 3 stars.

Stanley Black & Decker

Tools and accessories firm Black & Decker rose 33.85% in the second quarter and gained 43.82% over the past 12 months. Trading at $94.12, its stock has a forward dividend yield of 3.53%. Black & Decker pays investors an annual dividend of $3.32 per share. The stock has a quantitative Morningstar Rating of 5 stars.

MSC Industrial Direct

Industrial distributor MSC gained 29.86% in the second quarter and climbed 43.98% over the past 12 months. The stock’s $118.95 price gives it a forward dividend yield of 2.93%. MSC pays investors an annual dividend of $3.48 per share. With a fair value estimate of $67 per share and a narrow economic moat, the stock is 78% overvalued and has a Morningstar Rating of 1 star.

Sirius XM Holdings

Entertainment company Sirius XM climbed 29.16% in the second quarter and rose 33.30% over the past 12 months. At $29.54, its stock has a forward dividend yield of 3.66% and an annual dividend of $1.08 per share. The stock, which has no economic moat, is trading near its fair value estimate of $31 per share. It has a Morningstar Rating of 3 stars.

Skyworks Solutions

Semiconductor company Skyworks rose 27.94% in the second quarter and lost 5.21% over the past 12 months. Trading at $67.80, its stock has a forward dividend yield of 4.19%. Skyworks pays investors an annual dividend of $2.84 per share. The stock, which has no economic moat, is trading at an 18% discount to its fair value estimate of $83 per share, leaving it with a Morningstar Rating of 4 stars.

Reynolds Consumer Products

Packaging and containers company Reynolds gained 27.83% in the second quarter and climbed 29.62% over the past 12 months. The stock’s $26.85 price gives it a forward dividend yield of 3.43%. Reynolds pays investors an annual dividend of $0.92 per share. The stock has a quantitative Morningstar Rating of 3 stars.

T. Rowe Price Group

Asset management firm T. Rowe Price rose 27.57% in the second quarter and gained 23.14% over the past 12 months. Trading at $113.69, its stock has a forward dividend yield of 4.57%. T. Rowe Price pays investors an annual dividend of $5.20 per share. The stock, which has a narrow economic moat, is currently trading at an 8% premium to its fair value estimate of $105 per share, leaving it with a Morningstar Rating of 3 stars.

Fifth Third

Regional bank Fifth Third climbed 22.19% in the second quarter and rose 40.94% over the past 12 months. At $56.37, its stock has a forward dividend yield of 2.84% and an annual dividend of $1.60 per share. The stock, which has a narrow economic moat, is trading near its fair value estimate of $54 per share. It has a Morningstar Rating of 3 stars.

Ford

Auto manufacturer Ford gained 21.75% in the second quarter and climbed 33.64% over the past 12 months. The stock’s $13.90 price gives it a forward dividend yield of 4.32%. Ford pays investors an annual dividend of $0.60 per share. With a fair value estimate of $19 per share and no economic moat, the stock is 27% undervalued and has a Morningstar Rating of 4 stars.

The Best Dividend Stock Leaders: More Ideas to Consider

Investors who would like to find more top-performing or cheap dividend stocks can do the following:

• Use the Morningstar Investor Screener tool to find the best dividend stocks according to your specific criteria. You can search for stocks based on their dividend yields, valuation measures like price/earnings ratios, and more.
• Use Morningstar Investor to build a watchlist of the best dividend stocks and easily follow those stocks’ valuations, ratings, and dividend yields.
• Watch our dividend stock video series, hosted by David Harrell, for ideas to consider.
• Review the full list of dividend stocks included in the Morningstar Dividend Leaders Index. Those dividend stocks with Morningstar Ratings of 4 or 5 stars are undervalued, according to our metrics.
• When it comes to buying stocks, it’s more than just dividends. Read here how valuations and competitive advantages—known as economic moats—matter when it comes to a stock’s potential for outperformance.
• Read Morningstar’s Guide to Stock Investing to learn how our approach to investing can inform your stock-picking process.

Companies not formally covered by a Morningstar analyst are statistically matched to analyst-rated companies, allowing our models to calculate a quantitative star rating.