The company’s stock has consistently raised its dividends over the years, and the core business remains robust.
If you’re in the market for high-dividend stocks to kick off 2026 with some steady income, here’s a list of three blue-chip investments that appear to be quite safe. These companies have demonstrated a commitment to increasing their dividend payments recently.
Costco Wholesale , Home Depot , and McDonald’s are all solid picks. Interestingly, these stocks are trading close to their 52-week lows, which makes them available at a bargain. For those seeking long-term dividend stocks to hold not just for a few years but, potentially, for decades, here’s why these might be smart choices to consider.
Costco Wholesale
Costco’s stock has seen significant growth, but as of Monday’s close, it was trading around $945, still nearly 12% above its 52-week low of $844.06. The price-to-earnings ratio has remained stable over the last year. While a 50x price-to-earnings ratio feels a bit inflated, it’s hard to deny the stability and safety that Costco provides as a business.
Costco’s profits have remained strong, as it has become the go-to shopping destination for a wide variety of consumers. Even for those watching their budgets, buying in bulk at Costco can lead to savings in the long run. Its generous return policy adds to its appeal, though one has to be okay with sometimes crowded stores.
Costco’s impressive sales numbers demonstrate its strength, with membership renewal rates typically around 90% or higher. Over the past year, it reported a net income of $8.3 billion on total revenues of $280.4 billion.
While the dividend yield is relatively modest at about 0.6%, the company has raised its quarterly dividend by 86% in the last five years. Occasionally, special dividends are also issued, which can enhance the income potential.
At present, the valuation might not promise a massive return, but if you’re prepared to hold onto it long-term, Costco seems like a reliable addition to your income-generating investments.
Home Depot
Home Depot is another solid dividend stock you might consider for your portfolio. Its stock price has dipped 4% over the last year, sitting about 14% above its 52-week low of $326.31.
With a dividend yield of 2.5%, it’s significantly higher than the average 1.1% found in the S&P 500. Home Depot has been generous with its dividend increases; the current quarterly dividend stands at $2.30, a 53% rise since the end of 2020.
Home Depot carries a P/E ratio of 26x, which aligns with the S&P 500 average, suggesting it remains conservatively valued. Despite consumers cutting back on non-essential purchases, the company has maintained profitability with better margins than Costco, achieving a net income of $14.6 billion out of $166.2 billion in sales over the last year.
McDonald’s
Finally, we have McDonald’s on this list. The stock was just under $307 at Monday’s close, only about 11% off its 52-week low of $276.53. The stock hasn’t seen much volatility recently, reaching a peak of $326.32 in the past year, which, to be honest, isn’t that impressive. It shares a P/E ratio of around 26 times, similar to Home Depot.
Offering a dividend of 2.4%, McDonald’s is poised to join the exclusive ranks of Dividend Kings in 2026. Unless something catastrophic happens, it’s likely to keep increasing its dividend for the next five decades. Currently, the quarterly dividend per share is $1.86, an increase of 44% from $1.29 five years ago.
McDonald’s represents a stable long-term investment. The company’s ability to adapt to evolving consumer preferences, while providing affordable food options, has allowed it to perform well. Over the last four quarters, McDonald’s reported profits of $8.4 billion on revenues of $26.3 billion, with a notable profit margin of 32%.
