Top 3 Dividend ETF Picks for 2026
After three years during which tech and AI stocks have been almost the only groups driving gains in the U.S. equity market, it would be easy to forget that dividend stocks still deserve consideration as long-term portfolio allocations.
Over the course of decades, dividend stocks have proven their ability to enhance risk-adjusted returns, mitigate portfolio volatility, and deliver steady income streams. This makes them ideal for both income investors and longer-term growth-oriented investors.
Heading into 2026, the U.S. economy looks like it's still in good shape. In the December projections that the Federal Reserve released this past week, it indicated that it expects real U.S. GDP growth to accelerate from 1.7% in 2025 to 2.3% in 2026. On the other hand, it just lowered the federal funds rate by a quarter-point. Generally, the central bank cuts its benchmark interest rates when it feels the economy could use a little support.
Source Fool.com
