My Top 3 Dividend Stocks for March 2026
March 21, 2026
Dividend stocks have been in high demand this year as investors seek a safe haven from stock market volatility.
The Dow Jones U.S. Dividend 100 Index is up nearly 12% year to date, easily beating all of the major market indexes. Even the broader Morningstar US Dividend Growth Index is beating the S&P 500 and Nasdaq indexes, up about 3% year to date.
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Good dividend stocks are in demand for a couple of reasons. One, in a market with negative returns, they pay out income, often at an elevated yield, no matter how the stock performs. But also, dividend stocks tend to be offered by more value-oriented, stable companies that perform relatively well in choppy market conditions. In addition, the dividend can be reinvested in the stock to boost returns.
Here are three dividend stocks to consider for March that tick off one or more of these boxes.
If you are looking for pure high dividend yields, then Ares Capital (NASDAQ: ARCC) is an excellent choice. Ares Capital is a business development company (BDC), which is mandated by federal statute to pay out 90% of taxable income to shareholders in dividends, in exchange for certain tax breaks. They are quite simply built for dividends.
Ares Capital lends money to mid-sized companies across industries to help them grow, restructure, make acquisitions, or accomplish other goals. As of Dec. 31, 2025, it had invested $29.5 billion in 603 companies, with the majority in senior secured loans, meaning they get paid back first if the company goes under.
Ares Capital pays out a quarterly dividend of $0.48 per share at a ridiculously high yield of 10.7%. That’s one of the highest yields you’ll find. It has not raised its dividend in three years, but it has not lowered it either, maintaining it at $0.48 per quarter since the end of 2022.
If you are seeking steady, consistent dividend growth with the potential for high returns, then you may want to consider S&P Global (NYSE: SPGI). Few stocks have been as consistent as S&P Global, which has raised its dividend annually for 53 straight years, making it a Dividend King.
The company, which is the leading credit rating agency and indexer, does not pay out a super-high yield — just 0.91% — but it has typically generated an excellent market-beating return. Over the past 10 years, it has posted an average annualized return of 16.4%, or 17.4% with the dividend reinvested, which beats the S&P 500. Strong stock price returns generally diminish yields.
The stock is trading down 17% year to date, but analysts are bullish on its prospects, given its cheap valuation and dominance in two of its markets. Some 93% of analysts rate S&P Global as a buy with a median price target of $546 per share, which suggests 26% upside over the next 12 months.
American Express (NYSE: AXP) just made a big move with its dividend. Earlier this month, the credit card increased its dividend by a massive 16% to $0.95 per share, which now yields 1.27%.
This is the fifth straight year of dividend raises for American Express, and in that time, its dividend has more than doubled from $0.43 per share at the end of 2021. The new dividend will pay out on May 8 to shareholders of record by April 3.
While American Express’ yield is not as high as others, it offers a nice boost for a stock that has high upside.
American Express grew revenue by 10% and earnings by 15% in 2025, and calls for similar growth numbers in 2026. The company tends to do well in market downturns as its clientele is typically made up of higher earners who tend to be less impacted by macroeconomic forces. Further, it is less sensitive to interest rates as most of its income comes from fees.
Wall Street sees significant growth potential for American Express with a median price target of $393 per share, which would indicate 30% upside over the next 12 months.
These are three dividend stocks to put on your radar for March.
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American Express is an advertising partner of Motley Fool Money. Dave Kovaleski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Ares Capital and S&P Global. The Motley Fool has a disclosure policy.
My Top 3 Dividend Stocks for March 2026 was originally published by The Motley Fool
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