Dividend investing remains a core strategy for market participants seeking steady income and long-term capital appreciation in 2026.
With interest rates stabilizing and equity markets navigating a mixed economic backdrop, investors looking for opportunities can focus on companies that combine reliable cash flow, sustainable payout ratios, and strong competitive positioning.
To this end, as 2026 unfolds, Finbold turned to OpenAI’s ChatGPT to identify two dividend stocks worth considering.
Merck & Co (NYSE: MRK)
Merck (NYSE: MRK) enters 2026 as one of the more defensively positioned dividend names in the healthcare space. As of press time, the stock was trading at $121 and offers a forward dividend of $3.40 per share, translating to a yield of 2.80%.
The company maintains a forward payout ratio of 34.93%, a level that signals strong dividend coverage and leaves meaningful room for reinvestment and future increases.
The pharmaceutical giant has raised its dividend for 15 consecutive years, highlighting its long-standing commitment to shareholder returns.
Its quarterly dividend currently stands at $0.85, with the next payment scheduled for early April 2026.
Fundamentally, Merck benefits from the resilience of the healthcare sector, where demand tends to remain stable even during economic slowdowns.
At the same time, its oncology franchise, led by blockbuster treatments such as Keytruda, continues to anchor revenue generation, while the broader drug pipeline provides potential for future growth.
ConocoPhillips (NYSE: COP)
The second pick by the AI model shifts the focus from defensive healthcare to the cyclical dynamics of the energy market with ConocoPhillips (NYSE: COP), a major independent exploration and production company.
Unlike more defensive dividend plays, ConocoPhillips offers investors direct exposure to global oil and gas prices, which can amplify both risks and rewards.
The company has structured its capital strategy around disciplined spending and strong free cash flow generation, a model designed to sustain shareholder returns even when commodity markets fluctuate.
By tying dividends and buybacks closely to cash flow performance, management reinforces the durability of its payout policy across different energy price cycles.
As of the close of the last Friday session, COP was trading at $111.43. The stock carries a forward annual dividend of $3.36 per share, translating to a yield of 3.02%. Its forward payout ratio stands at 50.06%, a moderate level for an energy producer that reflects a balance between reinvestment in production assets and returning capital to shareholders.
The company distributes dividends on a quarterly basis, with the next payment of $0.84 scheduled for March 2026.
Featured image via Shutterstock
