Best Nasdaq-100 Dividend Stocks: January 2026
In today's volatile market, investors are increasingly seeking the security offered by companies that generate stable cash flow. In this analysis, we focus on four Nasdaq-100 companies that stand out for their strong combination of dividend yield and business growth. We excluded the highest-yielding stock, Kraft Heinz (6.6%), because its sales revenue is declining and its profit growth is deceptive, stemming from accounting changes rather than real business success.
Exelon is a utility giant that offers investors much-needed stability in the current environment. The company's latest results are impressive: operating profit grew by over 25% year-over-year as revenues increased faster than expenses. This demonstrates the company's ability to manage its operations effectively and grow profitability even in a challenging economic climate.
For investors, the main attraction is its 4.50% dividend yield, which is very respectable for this sector. As a provider of essential services, its cash flows are generally secure. Based on historical patterns, the next dividend payment is expected in February 2026, making it a good choice for securing near-term cash flow.
Fastenal, a distributor of industrial and construction supplies, has gained new growth momentum. Its operating profit grew by nearly 13% and revenue by over 8%, driven by high demand for safety equipment. Unlike many other industrial companies grappling with a cyclical downturn, Fastenal is successfully growing its market share and sales volumes.
The stock offers an attractive 4.11% dividend yield. The company is known for its shareholder-friendly policies and pays dividends quarterly. The next payout is expected in January 2026, allowing investors to start earning an immediate return on their investment.
Paychex is a technology company that provides payroll and human resources solutions. Its operating profit has returned to growth (+6.3%), and sales revenue has jumped by a remarkable 18%, supported by the successful acquisition of Paycor. While part of the growth is acquisitive, it demonstrates the company's ambition and ability to expand into new markets.
For investors, this translates to a 3.76% dividend yield. Paychex is a rare example of a stable dividend payer in the technology sector with a strong balance sheet. The next dividend payment can be expected in February 2026, offering a good balance between growth and income.
American Electric Power is another strong utility in our selection, notable for its core business growth. Thanks to investments in its grid and rate adjustments, the company's sales revenue grew by over 11%. This confirms that demand for electricity and its transmission remains strong, creating a solid foundation for future profits.
The stock offers a 3.23% dividend yield. It is a safe choice for a more conservative investor who values lower risk and steady progress. Similar to other utilities, its next dividend payment is expected in February 2026.
Conclusion
In summary, these four companies offer a good balance between dividend income and business growth. Exelon and Fastenal are particularly strong candidates right now due to their high yields and accelerating profit growth. However, it's worth remembering that dividend payouts and stock prices can change, so it's important to keep an eye on the companies' quarterly results.
RYTM content is for informational purposes only, not financial advice or recommendations. You are solely responsible for your investment decisions. Always consult a professional.