1 Top Dividend Stock For 2026 That Could Perform Well Even If AI Stocks Fall

2025-12-31 20:51:00 ET

Despite shares falling in 2025, even as the S&P 500 rose sharply, rural retailer Tractor Supply (NASDAQ: TSCO) is one of my top dividend stock ideas for 2026. In fact, its underperformance, despite improving business fundamentals throughout 2025, is a reason to buy; shares are arguably even more undervalued now than they were at the start of the year.

But there's another unique reason to buy Tractor Supply in 2026: It stands in stark contrast to many of the AI (artificial intelligence) -focused market darlings of 2025. While the AI boom may remain a driving force in 2026, it wouldn't be surprising to see AI stocks take a breather or even fall after many of them rose significantly in 2025. And Tractor Supply's simple but powerful needs-based business model represents the type of dependable companies investors might rotate into if the market turns sour on AI stocks.

And even if AI stocks continue rising in 2026, it's good to have some stocks that expose investors to other areas of the market, balancing out AI bets -- and Tractor Supply, with its attractive dividend, is a good option.

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