Best Dividend Stocks to Buy in July 2026: 4% Yields and Rising

Dividend investors are turning to overlooked stocks offering 4% to 6.6% yields as the S&P 500 sits well below 2%. Wall Street analysts have identified four stocks with solid earnings coverage and growth catalysts: Verizon Communications yields 6.6% with 20 consecutive years of dividend increases, Permian Resources offers 3.5% backed by shale demand recovery, Copa Holdings pays 4.58% with trailing earnings covering its dividend several times over, and Best Buy yields 4.8% while planning $300 million in buybacks.

Verizon leads with 6.6% yield and two decades of raises

Verizon Communications (VZ) offers a 6.6% dividend yield and has raised its payout for 20 consecutive years. The wireless carrier operates 146.8 million retail connections and 16.8 million broadband connections across the U.S. market. Management expects at least $21.5 billion in free cash flow this year, which covers approximately $10 billion in total dividend expenditures over the past year, demonstrating the payout is sustainable.

Permian Resources targets higher multiples on acquisition strategy

Permian Resources (PR) recently paid a quarterly base dividend of 16 cents per share, annualizing to 64 cents and yielding 3.5%. Evercore analyst Chris Baker initiated coverage with a $25 price target, citing the company’s low-breakeven inventory and disciplined consolidation in the Permian Basin. Baker highlighted PR’s acquire-and-exploit model, which continually develops new high-quality assets rather than relying on finite inventory, justifying a premium valuation.

Copa and Best Buy offer 4%+ yields with strong coverage

Copa Holdings (CPA), a Latin American airline, hiked its quarterly dividend to $1.71 in early 2026, up 6.2% from $1.61. Trailing earnings of $16.93 per share cover the $6.84 annualized dividend several times over, yielding 4.58%. Best Buy (BBY) yields 4.8% with FY27 EPS guidance nearly 2x covering its $3.84 annual payout. Best Buy management plans $300 million in buybacks, signaling confidence in the business.

Why income investors are moving beyond traditional dividend sectors

With the S&P 500 dividend yield sitting well below 2%, income investors are increasingly forced outside traditional REIT and utility sectors. The four stocks highlighted all pay yields north of 4%, operate in industries most dividend screens ignore (telecom, energy, airlines, retail), and show the earnings coverage and free cash flow to sustain those checks. Analysts note that high yields backed by strong fundamentals offer both current income and capital appreciation potential.

Final Thoughts

Dividend yields above 4% remain available for investors willing to look beyond utilities and REITs. Verizon’s 20-year raise streak, Permian’s acquisition upside, Copa’s airline recovery, and Best Buy’s buyback commitment offer income with growth. The key is verifying earnings coverage before buying.

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