5 stocks with dividends above 4% that have gained at least 20% this year
The combination of a high dividend yield and strong share price growth is rare in the market, because both conditions naturally work against each other. But 2026 created such an environment. The oil shock, the return of capital to value sectors, and fatigue with technology stocks sent energy, chemicals, and asset managers soaring. Which companies today offer a yield above four percent and at the same time have beaten the market by nearly double this year?
Key points
One of the companies has grown so quickly in recent days that its yield has fallen below 4%.
Three of the five companies are paying out more than they earn. They bridge the gap between dividends and generated cash with debt or by issuing new shares.
The highest yield may not be the best choice. One stock pays less, but adds another 4% in share buybacks on top of the dividend.
Three companies rest on the very same macro assumption. Whoever buys them isn't diversifying, but betting on the same thing.
Why dividend stocks are thriving this year
2026 reshuffled the order in the American market differently than most investors expected. While the S&P 500 index posted less than 9% in the first seven months and the technology sector lost momentum after the spring enthusiasm around AI infrastructure, stocks that were still being traded a year ago as boring dividend positions for a conservative portfolio came to the fore.
The main catalyst was the oil shock. The escalation of the Middle East conflict and the closure of the Strait of Hormuz drove the price of oil up to $113 per barrel in April. Even after the subsequent calming, when US oil returned to the range between $75 and $82, prices remain significantly above the levels from the end of 2025. This was directly reflected in the profits of producers, infrastructure operators, and chemical companies that process hydrocarbons into plastics.
The second factor is the shift of capital. After several years when the market rewarded growth potential above all, investor attention has returned to real profitability, margins, and the ability to generate cash. Companies with predictable cash flow and low valuation multiples have thus come into the sights of capital that was previously directed to technology.
For a dividend investor, however, it's a treacherous situation. Dividend yield is the ratio of the annual dividend to the current share price, so every percentage point of price increase automatically reduces this indicator. Companies that today meet both conditions simultaneously are therefore typically in a transition phase, where the market is only just catching up with the reassessment of their fundamentals, but the valuation hasn't yet had time to jump to the level common for quality growth stocks. By nature, this state won't last long.
Overview of selected companies
Company | Price | Div. yield | YTD growth |
TotalEnergies $TTE | $85.4 | 4.66% | +30.0% |
Altria $MO | $68.5 | 6.20% | +18.8% |
ONEOK $OKE | $87.7 | 4.88% | +19.3% |
Dow $DOW | $30.3 | 4.62% | +29.7% |
Franklin Resources $BEN | $34.9 | 3.79% | +46.1% |