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With dividend yields not what they once were, investors should be choosing investments wisely in order to maximize returns, according to Trivariate Research. In fact, the yield on the S & P 500 , currently at 1.15%, is approaching its lowest levels in 50 years, founder Adam Parker said in a note Tuesday. The only time it sank lower was when it troughed at 1.09% during the tech bubble, he wrote. However, dividend payers are outperforming the broader market this year. For instance, the ProShares S & P 500 Dividend Aristocrats ETF (NOBL) has gained 3% so far in 2026. In comparison, the S & P 500 is down about 1%. Companies that increase their payouts have also had returns that slightly top that of their industry groups since Covid-19, Parker wrote. That is a shift from in-line performance prior to the pandemic. Junk stocks and those with the lowest payout ratio saw the most outperformance in recent years, he said. “This is another in many examples of shareholder returns, like buybacks as well, working better post-COVID than prior,” he said. “Dividend increases have worked best in Real Estate, Industrials, and Utilities; worst in Communication Services, Technology, and Consumer Staple.” Consistent dividend increases can be a signal of a company’s financial stability and disciplined management. With that in mind, Parker came up with a long list of stock ideas that focuses on companies with the lowest payout ratio — a measurement of how much of a company’s earnings is paid out to its shareholders. The companies all recently announced dividend increases. In addition, being in the bottom quintile of payout ratio sets them up to increase their payout again in the future, Parker said. Here are some of the names that made the cut. Dell Technologies , which yields about 1.4%, announced its dividend hike earlier this year. The quarterly payout went to 63 cents per share from about 53 cents a share. The stock, which hit a 52-week high on Wednesday, is up about 47% so far this year thanks to soaring demand for its artificial-intelligence servers. Shares got a big boost after Dell reported a fourth-quarter beat on both the top and bottom lines in late February. The tech company’s estimates for fiscal 2027 revenue also blew past Wall Street’s estimates. DELL YTD mountain Dell Technologies year to date The stock has an average analyst rating of overweight, but roughly 6% downside to the average price target, according to FactSet. Toll Brothers , which has a roughly 0.8% dividend yield, also made the list. The homebuilder announced a 4% dividend increase in March to 26 cents per share, to be paid on April 24 to shareholders of record on April 10. TOL YTD mountain Toll Brothers year to date In February, Toll Brothers reported revenue of $2.15 billion for the fiscal first-quarter, beating the FactSet consensus call for $1.85 billion. The stock has an average analyst rating of overweight and 22% upside to the average price target, per FactSet. Among those bullish on the stock is Truist, which initiated coverage last month with a buy rating. “In our view, TOL is undervalued compared to our view of future ROE [return on equity] potential,” the firm said in a note. “The company is uniquely positioned to benefit from any greenshoots in the resilient luxury home market in 2027.” Toll Brothers has gained more than 3% year to date. Lastly, Steel Dynamics yields about 1.2% and is up 9% so far in 2026. The company has benefited from President Donald Trump ‘s tariffs on steel and aluminum imports, with its stock rising 68% over the last 12 months. However, in March Steel Dynamics issued first-quarter guidance that fell short of Wall Street’s expectations. The company is set to report earnings after the close on April 20. — CNBC’s Michael Bloom contributed reporting.
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