Growth stocks have clearly provided much of the total return many investors have seen within their portfolio in recent years. That’s a dynamic some investors clearly expect to continue, with capital inflows into higher-growth stocks continuing to outpace the move in value stocks and companies paying out meaningful dividend yields.
That said, the macro environment we’re heading into for the duration of 2026 looks to be far different than the one we entered into this past year. Plenty of exuberance around re-elected president Donald Trump’s tax policies prompted earnings growth expectations to be ratcheted up. But with tariff, trade and geopolitical policies now providing investors with plenty of concern around inflation and a slowing jobs market, it’s unclear whether these high-flying growth stocks can have a fourth double-digit up year in a row.
For investors looking to play more defense within their portfolios, here are three top dividend stocks I think are worth considering right now.
PepsiCo (PEP)
In the world of carbonated beverages and snacks, PepsiCo (NASDAQ:PEP | PEP Price Prediction) has built quite an amazing empire. With past acquisitions including that of Frito-Lays, and a number of other banner snack and beverage brands under its umbrella, Pepsi is a solid #2 player in this highly profitable cash flow producing sector.
Pepsi’s upside in the past has come from immense pricing power, which I’d argue hasn’t gone away. The ability for Pepsi to raise prices on its core snack business in particular has driven significant margin explosion in recent years, with the company’s gross margin coming in at 53.6% this past quarter and its operating margin coming in right around 15%. For this sector, that’s incredible.
Despite concerns that the company’s business model is inherently cyclical, we’ve seen robust sales through past down markets. Thus, I’d argue his is a dividend stock with a solid defensive tilt.
On the dividend front, Pepsi’s 4% dividend yield is impressive. But I’d argue the company’s 53-year track record of raising its dividend is even more impressive.
So, for investors looking for a company with a rock-solid balance sheet, a dividend growth profile that’s hard to come by, and a world-class brand with a moat that’s nearly impenetrable, Pepsi is a top choice I think investors can’t ignore.
Restaurant Brands (QSR)
Another dividend stock I’d definitely put in the defensive bucket right now is Restaurant Brands (NYSE:QSR). Shares of the quick service restaurant provider have traded within a relatively narrow band over the past two years, with many investors (myself included) expecting to see a breakout come at some point.
I still think we’ll see a breakout in the years to come, and in fact, I think 2026 could be this company’s year. That’s because the parent company of Burger King, Popeye’s Louisiana Kitchen and Tim Horton’s (among other banners) has incredibly stable and growing cash flows driven by both organic same-store sales growth and continued global expansion in higher-growth markets in Asia.
With operating income surging nearly 15% ithis past quarter and adjusted EPS also rising double digits, Restaurant Brands’ core dividend yield of 3.7% is well-covered. And if we do see more trade-down take place in the dining away from home segment, I think the company’s increasingly attractive value offerings should drive continued growth, bear market or not.
Thus, for those seeking a defensive 3.7% yield with plenty of dividend growth potential over the long-term (and a business model that’s still growing), Restaurant Brands is a stock I think could provide double-digit total returns for at least a decade or two ahead. Personally, that’s good enough for me.
Constellation Energy (CEG)
In the utilities sector, Constellation Energy (NASDAQ:CEG) is one of my top picks for investors looking not only for robust dividend distributions today, but a solid growth profile over the medium to long-term.
This company’s focus isn’t on the traditional electricity and natural gas utilities business many investors commonly think of. Rather, the company’s nuclear-focused business model provides the energy source of the future, and one that’s come in much higher demand of late thanks to the rise of artificial intelligence and the impressive electricity demand we’re likely to see for decades to come.
Indeed, in order for the U.S. economy to support the kind of data center buildout that’s expected (given the country’s aging infrastructure on this front), more small modular nuclear reactors are going to need to be built. Constellation supplies such opportunities, with plenty of spending spurring solid stock price appreciation in recent years. That’s a trend I think can continue.
Now, Constellation Energy is a stock that used to provide a reasonable dividend yield five years ago. That’s before this stock shot more than 800% higher over this time frame. Still providing a 0.4% yield with plenty of potential to ramp up distributions in the years to come, the real winners from this stock’s rise have been those who were able to lock in 4%-5% yields five years ago.
That said, I think that as the company continues to grow, Constellation Energy is likely to pass on more of its cash flows to investors in the form of dividend increases and share buybacks. I’d want to be on the right side of this trend, which is why CEG stock still looks like a buy to me even after its impressive rally.
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