Prudential Financial and British American Tobacco lead a group of five stocks with mid-4% to mid-5% yields and earnings growth forecasts for 2026.
Prudential Financial (PRU) extended its 18-year dividend increase streak, raising its quarterly payout to $1.40 for 2026. The stock trades at $115 with a 4.9% trailing yield, backed by $9.48 in earnings per share and $1.47 trillion in PGIM assets under management. Q1 2026 adjusted operating income rose 8% year-over-year to $3.61 per share.
British American Tobacco (BTI) leads the group with a 5.4% yield and guided 5-8% earnings per share growth for 2026. The five stocks span life insurance, asset management, banking, and consumer staples, trading at valuations that support total returns beyond dividends. Coverage ratios and cash flow durability remain key for sustained payouts.
Prudential faces risks from a 27% decline in international sales to $424 million in Q1, following an extended voluntary sales suspension in Japan.