Defensive Dividend Stocks Draw Analyst Support

Analysts Tilt Toward Defensive, Income-Focused Stocks

Recent research notes point to a cluster of dividend-paying companies in consumer staples, financials, utilities and real estate attracting renewed analyst support. Several firms on a "Dividend Contenders" list, including Mondelez International, U.S. Bancorp, Manulife Financial and American Electric Power, received updated ratings or price targets as strategists reassessed 2026 earnings paths and risk profiles. In parallel, other income-oriented names such as Kinder Morgan, VICI Properties, Iron Mountain, storage-focused REITs and select industrials were the subject of fresh valuation work and ownership changes.

Across these calls, a common theme is the search for steady cash flows and relatively defensive characteristics as investors weigh tariff policy, interest-rate moves and sector-specific cost pressures. While the individual companies face distinct challenges—ranging from cocoa prices to fuel cell project execution—the analyst community is largely framing them as vehicles for income and stability rather than aggressive growth.

Consumer Staples: Cocoa Pressure but Support for Mondelez

JPMorgan lowered its price target on snack maker Mondelez International to $69 from $71 on Jan. 21 but maintained an Overweight rating ahead of the company’s Feb. 3 earnings. The bank expects 2026 earnings momentum to be weighted toward the second half of the year, with higher spending and softer volumes likely to weigh early on. Mondelez itself has warned that "unprecedented cocoa cost inflation" could reduce adjusted EPS by as much as 15% in 2025.

Even so, JPMorgan and other commentators note that Mondelez is entering the period from a position of strength, supported by a global footprint and established brands. CNBC Pro suggested the company could hold up relatively well as it adapts to more price-conscious consumers. With cocoa prices beginning to show signs of easing in 2026, there is potential cost relief ahead for the Cadbury owner. From a risk standpoint, Mondelez is described as a defensive stock, with a beta of 0.04, a 3.4% dividend yield and largely stable share performance over the past 12 months.

Banks and Insurers: Capital Markets Expansion and Upgrades

In U.S. banking, TD Cowen raised its U.S. Bancorp price target to $66 from $65 on Jan. 21 and kept a Buy rating after fourth-quarter 2025 core EPS of $1.26 exceeded expectations. The firm cited upside surprises in net interest income and fees, tight expense control and solid pre-provision operating leverage, noting that the stock outperformed after the earnings release and that the setup appears more supportive heading into 2026.

Separately, U.S. Bancorp announced a plan on Jan. 20 to acquire Wall Street brokerage BTIG for up to $1 billion in cash and stock, bringing in investment banking, institutional sales and trading, research and prime brokerage capabilities. Management characterized the move as a strategic effort to fill product gaps for corporate and institutional clients and to deepen a relationship that dates to 2014. In insurance, CIBC upgraded Manulife Financial to Outperformer from Neutral on Jan. 8, lifting its price target to C$58. The call reflects steady progress toward medium-term goals, potential upside versus consensus estimates and the possibility of multiple expansion, supported by a resilient core life business and growing wealth management operations, especially in Asia.

Utilities and Energy: Powering AI and New Technologies

Morgan Stanley reaffirmed an Overweight rating on American Electric Power and raised its price target to $125 from $120 on Jan. 21 as it updated its view on regulated utilities and independent power producers. The bank noted that utilities lagged the S&P 500’s return in December, despite broader market strength. In a separate January 8 report, AEP disclosed that a unit will purchase a substantial portion of its option for solid oxide fuel cells in a deal valued at about $2.65 billion, tied to a planned fuel cell power generation facility near Cheyenne, Wyoming backed by a 20-year offtake agreement.

Pipeline operator Kinder Morgan was also highlighted for its exposure to rising natural gas demand. Its gas pipeline segment delivered record performance last year, driven primarily by liquefied natural gas (LNG) exports, with contracted volumes to LNG facilities expected to rise from 8 billion cubic feet per day to 12 Bcf/d by 2028. The company is seeing additional demand from power generators, partly to support AI data centers, and is pursuing over 10 Bcf/d of opportunities in this area. Kinder Morgan has already secured $10 billion of growth capital projects, about 90% of which are gas-related and nearly 60% tied to power generation, with another $10 billion in potential projects under development.

REITs and Storage: High Yields Amid Rate Sensitivity

Rate-sensitive real estate investment trusts continue to draw institutional activity and mixed analyst views. Public Storage, Extra Space Storage, VICI Properties, Iron Mountain and Ventas all saw incremental stake changes by Resona Asset Management Co. Ltd., ranging from modest selling in some names to increased positions elsewhere. These REITs offer dividend yields between roughly 2.5% and over 6%, reflecting income appeal but also sensitivity to funding costs and economic conditions.

Analyst commentary on individual REITs was broadly neutral to positive. Public Storage retains a Moderate Buy consensus with an average target near $313, while Extra Space Storage and VICI Properties also carry Moderate Buy ratings, supported by expectations for steady cash flows from storage and experiential properties. Iron Mountain, which has expanded from records management into data center and technology-driven services, is rated Moderate Buy as well, with recent dividend increases underscoring management’s income focus.