Quarterly Dividend Research · Q2 2026
The State of Dividends — Q2 2026
Our quarterly analysis of 3,730 dividend-paying stocks: 51% trade below fair value, 788 are both cheap and safe, and dividend raises beat cuts 24-to-1.
3,504
Payers analyzed
51%
Below fair value
1,783
Undervalued
6
Pages
What's inside
The valuation landscape
How much of the dividend universe is cheap, fair, or expensive right now.
The cheap-and-safe matrix
The overlap of value and dividend safety — and the names that clear both bars.
Sector deep-dive
Yield, safety and the value spread across all 11 sectors.
Yield, safety & dividend actions
The yield distribution, safety grades, and the quarter's raises vs. cuts.
Key findings
- 51% of the 3,504 dividend payers we track trade below our blended fair-value estimate.
- 788 stocks are both undervalued and carry a Dividend Safety Score of 70+ — the rare cheap-and-safe overlap.
- Financial Services is the standout value sector: ~5.9% average yield with 69% of names screening undervalued.
- Dividend health is robust — 118 increases against just 5 cuts this quarter, a 24-to-1 ratio.
- Among Dividend Aristocrats, only 40% look undervalued vs. 51% market-wide — quality still trades at a premium.
A preview: cheap & safe right now
 XOMAO | $25.42 → $44.42 | +75% |
 RF-PC | $24.17 → $42.21 | +75% |
 BCV | $25.52 → $44.54 | +75% |
 IMKTA | $92.01 → $160.54 | +74% |
 VIPS | $13.92 → $24.26 | +74% |
 OFG | $48.06 → $83.69 | +74% |
Methodology: every payer is valued via DCF, a dividend-discount model and a Graham earnings multiple, then cross-checked against our Dividend Safety Score. For informational purposes only — not investment advice. Cite as: SmarterDividends, "The State of Dividends — Q2 2026," June 2026.
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