January 2026 Dividend Stock Watch List

As I'm writing this blog post, it's currently Friday, December 5th. The temperature here in Central Wisconsin is expected to reach a high of 24 degrees Fahrenheit later today, with some snow in the forecast. This is exactly what you would expect living here in early December.

I have already made all the stock purchases that I anticipate for this month. That's why I'm going to be taking a moment to look ahead to the stocks that are on my watch list for January 2026.

Dividend Stock #1: Brookfield Asset Management (BAM)

The first dividend stock on my watch list for January 2026 is Brookfield Asset Management. The crux of my investment thesis can be found in my September Seeking Alpha article.

Essentially, BAM is an industry leader in the thriving alternative asset management industry. The company has plenty of liquidity and an A- S&P credit rating, too. On top of a 3.3% dividend yield, BAM is targeting at least 15% annual dividend growth. The current $53 share price is also moderately below my $58 fair value estimate, which could set it up for 20% annual total returns through 2030.

Dividend Stock #2: Mastercard (MA)

The next dividend stock that I'm watching for next month is Mastercard. Interested readers can peruse my investment thesis in this recent article.

Despite over $10 trillion in TTM gross dollar volumes, Mastercard has plenty of room to grow further. This is evidenced by an $11 trillion consumer secular opportunity upon which it is capitalizing. Mastercard's 0.6% dividend yield is small, but its dividend can arguably grow at a mid-teens percentage annually over the long haul. The company also possesses an A+ S&P credit rating. I also estimate that shares are worth $605 each, which equates to a decent discount to fair value. That's why I envision 15% annual total returns from Mastercard by the end of 2030.

Dividend Stock #3: VICI Properties (VICI)

The third dividend stock on my watch list for January 2026 is VICI Properties.

My investment thesis is essentially that VICI owns some of the best properties in the world. Along with annual contractual lease escalators that are increasingly being linked to inflation, this should provide it with the ability to grow AFFO per share by 3% to 4% each year. VICI's BBB- S&P credit rating is another positive. The company's 6%+ dividend yield is also well-covered by its AFFO generation, with a payout ratio in the mid-70% range for 2025. At the current $28 share price, shares are trading at a forward 12-month P/AFFO ratio of 11.6, according to FAST Graphs. This is below my fair value P/AFFO ratio of 14.5 and could lead to 13% annual total returns through 2030.

Bonus Dividend Stock: Microsoft (MSFT)

The final dividend stock that I'm watching for next month is Microsoft.

My general investment thesis is that MSFT is a leader in multiple fast-growing markets, such as cloud computing and enterprise software. The company boasts an immaculate AAA S&P credit rating. MSFT's 0.7% dividend yield comes with a payout ratio in the low-20% range for FY 2026. At the current $491 share price, the stock's forward 12-month P/E ratio of 28.5 is below its nine-year average P/E ratio of 30.4 ($523 fair value per share estimate). That puts MSFT in a position to deliver 15% annual total returns by the end of calendar year 2030.

Concluding Thoughts:

There we have it. I'm planning on allocating approximately 40% to BAM, nearly 25% to VICI, and the remainder pretty evenly to MA and MSFT. This should provide a net dividend yield of right around 3% to go with enticing value and exceptional growth prospects.

Discussion:

Are any of BAM, MA, MSFT, or VICI on your watch list for January 2026?

If not, what stocks are you watching for next month/next year?

I appreciate your readership and welcome your comments below!