These 3 dividend stocks combine income, momentum and upside

With the S&P 500 showing signs of weakness in 2026, income investors face a familiar challenge.

It’s easy to find dividend stocks. Just check the basic filters and you’re done.

But, it is even more difficult to find those who still offer to the positive and without overpaying. Buying a strong business at the wrong time can limit returns, even when the yield looks attractive on the surface. Remember, returns aren’t the only thing investors should be looking at. And that’s why time and conviction matter.

To find these companies, I used Barchart’s Opinion and Strength of Opinion indicators, which use short-term technical signals to measure market momentum, and combined them with strong analyst consensus. This approach helps me find dividend stocks that are paying income today, while still showing signs of strength and potential.

I used Barchart’s stock picker tool to get the list using the following filters.

Annual dividend yield: It has been left blank so I can sort it from highest to lowest later.
Strength of general opinion: Strong – 1%. A stronger signal gives a stronger opinion.
General opinion %: Buy. Barchart’s short-term technical indicator indicates the general opinion, indicating whether the stock is bullish or bearish.
Current Analyst Rating: 4.5 – 5. Companies that are “Song Buys” according to Wall Street.
Number of analysts: 16 or higher The more analyst coverage, the higher the confidence score.
Dividend Investment Ideas: Dividend stocks, dividend aristocrats, dividend kings.

I tapped the screen and got 5 results. I will cover three with the highest annual dividend yield.

Let’s start with the first dividend action:

Permian Resources Corp drilling for oil and natural gas in the Delaware Basin, one of the most productive oil regions here in the US. The company operates as a purely upstream energy business focused on finding and producing oil and gas.

In its most recent financials, the company reported that sales rose 9% year over year to $1.3 billion. However, its net income fell 85% to $59 million due to higher operating expenses and lower commodity prices.

Still, Permian Resources has raised its dividend for two consecutive years, paying an annualized forward dividend of $0.60, which translates to a yield of about 3.7%.

Meanwhile, Barchart Opinion indicates a 100% buy average with maximum strength, suggesting bullish momentum in the short, medium and long term.

Additionally, a consensus of 24 analysts rates the stock as a “Strong Buy,” with upside of up to 28% should it hit the high price target of $21.

The second dividend stock on my list is Valley National Bancorp. The company provides banking services, including loans, deposits and cash management, to individuals and businesses, with a primary focus on commercial lending to small and medium-sized businesses.

In its recent quarterly financial report, sales fell 4% year over year to $827 million, while its net income rose 67% to $163 million. Of this, the company pays an annual forward dividend of $0.44, which translates to a yield of approximately 3.3%.

Similar to Permian Resources, Barchart Opinion shows a 100% buy average with maximum strength, indicating favorable momentum. It also belongs to the top 1% of stocks in both strength and direction.

Meanwhile, a consensus among 15 analysts rates the stock as a “Strong Buy”. The high price target is $16, suggesting a potential upside of 18% from current levels.

The last stock on my list is a dividend king: Cokea company whose products are known to consumers almost everywhere. It has an extensive beverage portfolio, including its namesake soft drink. In its most recent financials, the company reported that sales rose 5% year over year to $12.5 billion. Its net income also rose 30% to $3.7 billion.

Coca-Cola has also increased its dividends for 63 consecutive years, making it very popular with income investors. Today, it pays a forward annual dividend of $2.04, which translates to a yield of about 2.6%. It might not be the highest on this list, but it’s certainly the most stable and durable.

Meanwhile, Barchart Opinion has an overall buy average of 88%, with high strength and direction scores, indicating that there is still more to go.

On the other hand, a consensus of 24 Wall Street analysts rates the stock as a “Strong Buy,” suggesting a 27% upside potential if it hits its high price target of $100.

These three quality dividend stocks have analyst ratings and Barchart Opinion on their side, suggesting bullish momentum in the short, medium and long term.

That said, technical indicators and analyst ratings are only guides, not the whole story. Always do your own research and decide whether the business and the underlying risks align with your investment goals.

As of the date of publication, Rick Orford had no positions (either directly or indirectly) in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. This article was originally published on Barchart.com

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