The Long View The Morning Filter: Why 2026 Could Be a Breakout Year for Dividend Stocks
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Dec 1, 2025 Dan Lefkovitz, a Morningstar index strategist and dividend investing expert, discusses the current landscape of dividend stocks. He highlights the impact of the stock buyback boom on dividend yields and explains why the U.S. dividend stocks lag behind international ones. Listeners learn how to identify potential dividend cuts using key metrics like payout ratios and economic moats. Dan also names undervalued stocks and anticipates that 2026 could see a notable shift favoring dividend investors.
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AI Drive Explains Dividend Underperformance
- Dividend-focused portfolios lagged the U.S. market in 2025 mainly because of heavy AI and technology outperformance.
- Dan Lefkovitz attributes much of the gap to giant tech winners like NVIDIA inflating overall market returns.
AI Power Demand Lifted Utilities
- Utilities unexpectedly outperformed as AI-related power demand boosted the sector's growth narrative.
- Dan Lefkovitz highlights rising power needs for AI processing as a key catalyst for utility share gains.
International Dividends Outpaced U.S.
- International dividend stocks outperformed U.S. dividend stocks, helped by weaker U.S. dollar and stronger European and emerging market banks.
- Dan Lefkovitz notes international markets have less tech exposure and more dividend-rich financials.