Top Dividend Stocks to Invest in for the Next Two Years

Investors are advised to consider dividend stocks amidst ongoing market volatility, driven by factors such as President Donald Trump’s trade wars, U.S. fiscal concerns, and economic uncertainty. Two notable stocks mentioned are Nike (NYSE: NKE) and Wells Fargo (NYSE: WFC), both of which have exhibited strong dividend potential alongside company transformations.

Nike’s Turnaround Strategy

Nike’s stock has declined by approximately 39% over the last five years as of June 4, due to increased competition and missteps in brand strategy. The company’s new CEO, Elliot Hill, aims to refocus on product innovation and key markets. Nike has a current dividend yield of about 2.6% and raised its quarterly dividend by 8% in November, marking 23 consecutive years of dividend hikes. It may soon join the Dividend Aristocrats, noted for consistently increasing dividends over at least 25 years.

Wells Fargo’s Recovery

Wells Fargo is recovering from a major scandal that led to regulatory penalties and an asset cap of $1.95 trillion on growth. With new leadership under CEO Charlie Scharf since 2019, the bank has improved its financial posture. The Federal Reserve has lifted its restrictions, allowing Wells Fargo to grow its balance sheet. Analysts expect the bank’s diluted earnings per share to grow by about 8% this year and nearly 14% next year. Its dividends have consumed only 31% of earnings in the last year, indicating strong potential for future payouts.