3 Top Non-AI Dividend Stocks For 2026 – Sure Dividend

Visitor Put up by Tom Hutchinson, Chief Analyst, Cabot Dividend Investor

The S&P is up a staggering 95% since this bull market started in October of 2022. It’s up 128% this decade, for a mean annual return of about 15%, which is 50% greater than the historic common.

The excessive returns are notably spectacular contemplating this decade has included a world pandemic, the very best inflation in 40 years, and the very best rates of interest in 20 years.

If prognosticators noticed these issues coming of their crystal balls, they possible would have predicted a awful market. However returns have been stellar for one dominant motive – expertise.

The unreal intelligence catalyst is driving earnings development via the roof available in the market’s largest sector. The expertise is actual, and it supplies a once-in-a-generation catalyst. With out expertise, market returns for the previous few years can be fairly uninspired.

With that in thoughts, Certain Dividend has compiled a listing of 130+ expertise shares full with vital investing metrics, which you’ll entry beneath:

However the market has gotten dear. In line with The Wall Avenue Journal, the present S&P 500 worth/earnings ratio is 25.63. That’s nicely above historic averages, and such lofty valuations have hardly ever been sustained prior to now.

In fact, expertise has by no means been such an enormous a part of the index. The “Magnificent 7” shares plus Broadcom (AVGO) account for roughly 40% of the index. These shares at the moment commerce at a mean P/E ratio of 31 occasions. Nvidia (NVDA) accounts for about 8% of the index all by itself. For perspective, your complete vitality sector accounts for lower than 3% of the index.

If you happen to take out the over-representation of expertise, valuations aren’t that prime. An equal-weight S&P 500 has a present P/E ratio of simply 17 occasions. The massive expertise weighting is what makes present valuations excessive by historic requirements, and people excessive expertise valuations are justified by greater earnings development.

Will the AI growth proceed in 2026? There’s rising investor angst relating to the sustainability of expertise valuations and whether or not all this huge AI funding will ship tangible payoffs. Expertise inventory costs might proceed to fall and drag the indexes decrease. I imagine the AI catalyst is actual and nonetheless within the early levels. However expertise might nonetheless have a harder yr in 2026.

Happily, there are plenty of shares that aren’t expertise. The remainder of the market cares extra about rates of interest and the economic system, and people issues are shaping up nicely. The Fed is in a rate-cutting cycle, inflation is subdued, oil is reasonable, and a better stage of financial development is anticipated in 2026.

The rally is broadening, and 2026 could also be a yr for non-technology shares to shine. Total earnings are anticipated to develop 14% this yr, with a lot of the expansion over final yr coming from different sectors. Many shares in different industries promote at cheaper valuations than the market, and efficiency is bettering as buyers search to diversify past expertise.

Even when expertise and the general market flounder in 2026, a number of sectors might have an amazing yr, possibly the very best yr of this decade thus far. Notable sectors which might be nicely positioned forward of the brand new yr embrace well being care, financials, and utilities.

After a tough patch for many of 2025, well being care is again and on a tear. Returns have blown away all different sectors over the previous three months, and the momentum might proceed. Earnings estimates have been rising in financials and utilities. Monetary shares profit from a stronger economic system and decrease, or not less than steady, rates of interest. Utilities profit from AI as electrical energy demand continues to soar.

The bull market has been lopsided towards expertise thus far. However 2026 is shaping as much as be a yr for different shares to catch up. Listed here are some good ones to think about.

AbbVie Inc. (ABBV)

AbbVie is a U.S.-based biopharmaceutical firm fashioned in 2013 as a derivative from Abbott Laboratories (ABT). AbbVie is a research-based pharmaceutical firm that makes a speciality of small-molecule medication. It’s a cutting-edge firm with sturdy publicity to high-demand wants in immunology and oncology, and it has a terrific pipeline.

The corporate turned that nook from the patent expiration of its bestselling drug Humira. AbbVie has lengthy deliberate for this eventuality and has executed a stellar job launching new medication able to changing the diminishing Humira income.

Humira accounted for 75% of income a number of years in the past. However new immunology medication, Skyrizi and Rinvoq, collectively now have gross sales that already substitute peak Humira revenues. In the newest quarter, the 2 medication had mixed income of $6.9 billion, on tempo to considerably outsell the very best Humira yr. AbbVie has additionally guided for the 2 medication to herald $40 billion by 2029.

Whereas these medication are killing it, AbbVie additionally has a sturdy pipeline of recent medication within the hopper, together with vital cutting-edge indications within the areas of blood most cancers and Parkinson’s. The truth is, there are at the moment 20 medication in section III, the ultimate section earlier than approval. AbbVie additionally at the moment has over 50 medication in earlier phases.

The corporate is formally shifting previous the Humira patent expiration that has held the inventory again for years, regardless of a 169% return over the past 5 years. Think about how ABBV might carry out with no patent cliff and with rising gross sales.

Ally Monetary Inc. (ALLY)

Ally Monetary is the main all-digital banking firm within the U.S. with 3.3 million prospects and over $100 billion in loans. The first income supply is automotive loans (over 70%), however they’re additionally diversified in auto insurance coverage, business lending, mortgage financing, and bank cards.

The corporate was the monetary phase of Common Motors (GM), the place it developed right into a 100-year-old, totally developed auto mortgage enterprise. It was spun off in 2009 in the course of the monetary disaster as a part of GM’s chapter reorganization. The corporate has since targeted on the net enterprise.

The corporate is changing into very nicely established within the high-growth, on-line banking a part of the business. It focuses on this space greater than established banks and should develop right into a a lot greater participant within the years forward.

ALLY has returned a strong 28% within the final yr however continues to be nicely beneath the all-time excessive. It has momentum and is nicely positioned forward of a yr with possible bettering macro fundamentals.

NextEra Vitality, Inc. (NEE)

AI is reworking the utility sector as demand for electrical energy skyrockets to accommodate the large wants of AI knowledge facilities. Rising demand is making electrical utilities development companies as nicely.

The altering setting is including one other vastly constructive dimension to those underrated shares.

NextEra Vitality (NEE) is the nation’s largest producer of renewable vitality and the biggest utility within the nation. It ought to be in a perfect place to profit going ahead.

NEE has traditionally been a famous person performer for a utility. However it has stumbled lately as inflation and rising rates of interest made utilities an out-of-favor sector. However issues are altering. NEE has been trending greater since April.

NEE isn’t just a few boring, stodgy utility inventory with the attainable profit of excellent timing. It has a protracted monitor document of not solely vastly outperforming the utility sector however the general market as nicely. Previous to 2023, NEE’s complete returns greater than doubled these of the S&P 500 within the prior five- and 10-year intervals.

NEE is 2 corporations in a single. It owns Florida Energy and Mild Firm, which is likely one of the best possible regulated utilities within the nation, accounting for about 55% of revenues. It additionally owns NextEra Vitality Assets, the world’s largest generator of renewable vitality from wind and photo voltaic. It accounts for about 45% of earnings and supplies a better stage of development.

NextEra is the very best of each worlds: protection and development. There’s additionally an enormous runway for development initiatives. NextEra has deployed over $50 billion in the previous couple of years for development expansions and acquisitions. It additionally has a big undertaking backlog.

Because the nation’s largest producer of unpolluted vitality, NextEra has an enormous benefit going ahead. The skyrocketing development in electrical energy demand is primarily pushed by knowledge facilities and AI. Expertise corporations are extremely carbon-conscious and can go for clear vitality options every time attainable to scale back their carbon footprint.

Further Assets

The next articles include shares with very lengthy dividend or company histories, ripe for choice for dividend development buyers:

• The Dividend Aristocrats: S&P 500 shares with 25+ years of consecutive dividend will increase.
• The Dividend Kings Listing is much more unique than the Dividend Aristocrats. It’s comprised of 56 shares with 50+ years of consecutive dividend will increase.
• The Excessive Dividend Shares Listing: shares that attraction to buyers within the highest yields of 5% or extra.
• The Month-to-month Dividend Shares Listing: shares that pay dividends each month, for 12 dividend funds per yr.