Top 3 Dividend Stocks To Watch In October 2026

Inflation is back in the spotlight after wholesale prices jumped 6.3% annually in September, with energy costs taking a bigger bite out of business budgets. Income from cash and low yielding assets can quickly feel left behind when prices move like this. That is where long running dividend payers with 5%+ yields can help. This article looks at three such stocks that combine resilience with meaningful regular payouts.

The stocks covered below are one slice of the opportunity set. The full screen surfaced 4 more dividend payers with equally solid stories that are not covered in this article.

If you want to identify which of these income ideas truly fit your risk profile and cash flow goals, head straight to the Dividend Aristocrats screener to filter, analyze, and zero in on your highest conviction dividend plays.

RLI (RLI)

Overview: RLI Corp. is a specialty insurer that earns recurring premiums from commercial casualty, property, and surety coverage for businesses and individuals.

Operations: RLI generates about US$1.6b in premium related revenue, led by US$996 million from Casualty, US$499 million from Property, and US$147 million from Surety, almost entirely in the United States.

Market Cap: US$5.2b

RLI matters for income investors because its specialty property and casualty platform provides the kind of recurring premium stream that can underpin a richer dividend yield through different market cycles.

"The softening of commercial and E&S property markets, with intense competition and rate giveback on hurricane and earthquake risks, is expected to keep pressure on RLI’s ability to grow property premiums while protecting loss ratios."

The real test for RLI’s dividend appeal lies in how one less visible cost pressure shapes future underwriting margins and earnings resilience.

Those margin pressures are only half the story, and the full narrative for RLI explains how RLI could still compound value if pricing and discipline diverge from headline property trends.

Adams Diversified Equity Fund (ADX)

Overview: Adams Diversified Equity Fund is a Baltimore based closed end fund that manages a broad US equity portfolio focused on regular dividends.

Operations: Adams Diversified Equity Fund generates about US$34 million in closed end fund related revenue, entirely from investors in the United States.

Market Cap: US$3.3b

Adams Diversified Equity Fund appeals to dividend hunters because it packages a diversified stock portfolio into a single ticker that has historically produced regular, often 5%+ payouts, even though those distributions ultimately depend on portfolio returns. The stock is priced at about 5.3x earnings and trades at a deep discount to estimated fair value. However, the income stream relies on one key assumption about how those distributions are funded and sustained over time.

That funding question is exactly what the analysis report for Adams Diversified Equity Fund examines, showing where Adams Diversified Equity Fund payouts could decouple from portfolio reality.

First National Bank Alaska (FBAK)

Overview: First National Bank Alaska is a long-established regional bank that funds 5%+ dividend potential through recurring Alaskan commercial and retail banking income.

Operations: First National Bank Alaska generates US$225 million from general banking and trust services, entirely from customers in the United States, primarily Alaska.

Market Cap: US$1.0b

First National Bank Alaska is connected to the Dividend Aristocrats theme through steady net interest income, a strong 37.1% net profit margin, and a recently affirmed US$4.00 quarterly dividend that together support high yields. However, the Alaska focused loan book means income investors are still relying on how one regional concentration risk shapes future payout resilience.

That regional concentration question makes the 2 key rewards and 1 important warning sign a quick way to see how First National Bank Alaska’s payout profile compares with that risk focus.

Seeking Alternatives Before Momentum Flies

Fresh income ideas do not stay overlooked for long. Once yield momentum gets caught, prices can move fast and entry points start dropping. Scan the next wave and act now.

• Spot cash flow strength before it goes mainstream by running the list of solid balance sheet and fundamentals (25 results). Focus on businesses built to handle tougher conditions while returns still look under the radar for now.
• Ride early AI momentum by zeroing in on 39 profitable AI stocks that aren't just burning cash so you focus on companies already earning money from AI instead of funding endless experiments.
• Position ahead of the next infrastructure breakout with 43 power grid technology and infrastructure stocks while upgrades, grid hardening, and electrification demand are still priced as slow burn stories.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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