2 No-Brainer Dividend Stocks to Buy in 2026

Dividends have rarely been as cool as they are right now. It’s one of the few investing strategies generating positive returns this year, as a flight to quality finds even growth investors warming up to the timeless appeal of steady distributions.

I want to zoom in on two stocks in particular. Costco (COST +0.88%) and Cintas (CTAS 2.86%) are strong businesses that you probably already know. They also happen to have long histories of strong dividend hikes. Their payouts are manageable. These are quality dividend stocks, making them no-brainer investments in 2026.

Image source: Getty Images.

They are very different companies. Costco is the top dog in warehouse clubs, famous for more than just its $1.50 hot dog and soda combos. Cintas is the country’s leading provider of corporate identity uniform rentals, first aid kits, and other workplace essentials.

The two stocks have a lot in common. They both posted year-over-year revenue growth of 9% in their latest quarters, announced earlier this month. Their dividend yields are modest, and their P/E ratios are high, but the distributions are secure. Both companies are returning roughly a third of their trailing earnings to shareholders in the form of payouts. Costco and Cintas also have boosted their dividends annually for more than two decades, and those hikes have been substantial. Let’s take a closer look at both companies.

1. Costco

Costco stock is a great place to start. It’s probably one of the most recession-resistant retailers out there. Sure, Costco will sell flashy TVs and book travel plans for its members, but at its core it’s a place that offers its growing fan base great prices on groceries and household essentials.

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NASDAQ: COST

Costco Wholesale

Today’s Change

(0.88%) $8.58

Current Price

$983.44

Key Data Points

Market Cap

$432B

Day’s Range

$973.37 - $987.39

52wk Range

$844.06 - $1067.08

Volume

16K

Avg Vol

2.2M

Gross Margin

12.93%

Dividend Yield

0.53%

The markups are modest. The money it collects in annual membership fees accounts for the lion’s share of its net income. Don’t let the 3% net margin dissuade you. Costco makes it up in volume, and it’s also why membership renewals are high and comps are robust.

Costco should be near the top of safe stocks in the retail space, even with a forward earnings multiple of 48. You pay a premium for a premium company. Costco has delivered positive top-line growth in 32 of its last 33 years.

Let’s close by talking about the dividend. The stock’s 0.5% yield is admittedly unimpressive, but next month it should stretch its streak of payout hikes to 23 years. Costco has also issued much larger special dividends as one-time distributions four times over the past 11 years.

2. Cintas

If Costco being set to jack up its dividend rate for 23 consecutive years is impressive, Cintas is working on a 43-year run. Cintas came through with a strong financial update this week. It was another “beat and raise” performance for the industry leader.

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NASDAQ: CTAS

Cintas

Today’s Change

(-2.86%) $-5.07

Current Price

$171.78

Key Data Points

Market Cap

$71B

Day’s Range

$171.47 - $176.47

52wk Range

$171.47 - $229.24

Volume

827K

Avg Vol

2M

Gross Margin

52.49%

Dividend Yield

0.98%

It’s trading at a rich 36 times forward earnings, but – like Costco – Cintas has earned the market premium. Is a business that outfits businesses, in more ways than one, vulnerable to economic downturns and a shift to remote workforces? Sure. But Cintas finds a way to keep growing by picking up smaller rivals through accretive deals in this fragmented industry. The stock’s 1% yield may not seem like much, but you know the payouts will keep rising with every passing year.