Best Income Stocks to Buy for January 21, 2026 — Market Update

On January 21, 2026, investment research firm Zacks Investment Research released its latest list of top income-oriented stocks that have strong earnings expectations and are ranked as Zacks Rank #1 (Strong Buy). These recommendations highlight companies that could offer investors reliable income potential based on their fundamentals, dividend prospects, and financial performance.

Understanding Income Stocks

Income stocks are equities that typically provide regular dividend payments, making them attractive for investors seeking steady cash flow rather than just capital gains. These companies often have established business models, solid earnings, and a history of returning profits to shareholders through dividends. Investors who focus on income stocks are often looking for long-term stability and predictable returns, especially in environments where bond yields or interest rates are unpredictable.

One common method research firms like Zacks use to evaluate stocks is their proprietary Zacks Rank, which ranks stocks from #1 (Strong Buy) to #5 (Strong Sell) based on earnings estimate revisions and other quantitative factors. Stocks ranked #1 are considered strong candidates for earnings outperformance and, in many cases, may also have attractive dividend prospects.

Featured Income Stocks for January 21, 2026

For January 21, 2026, the following three stocks were newly added to the Zacks Rank #1 list specifically for income investors. Each company represents a different industry, offering a diversified set of options for those focused on income opportunities.

1. BNP Paribas (BNPQY)

BNP Paribas is a global banking and financial services firm headquartered in Paris, France. It is one of the largest banks in Europe, with operations spanning retail banking, investment banking, asset management, and corporate financial services.

Because of its size and diversified revenue streams, BNP Paribas often appeals to investors seeking income through dividends as well as stability in different market conditions. Financial institutions such as global banks normally distribute a portion of their earnings as dividends, and a strong earnings outlook can be encouraging to dividend-focused shareholders.

For the January 21 update, BNP Paribas was assigned a Zacks Rank #1 (Strong Buy), indicating that Zacks’ models expect its earnings performance and financial outlook to be favorable compared to broader market expectations. Investors looking for global banking exposure with an income component may view this as a notable inclusion.

2. Postal Realty Trust, Inc. (PSTL)

Postal Realty Trust, Inc. is a real estate investment trust (REIT) that focuses on owning and operating properties leased primarily to the U.S. Postal Service and related enterprises. REITs are unique because they are required by law to distribute most of their taxable income to shareholders in the form of dividends, which often makes them attractive to income investors.

PSTL’s business model centers on long-term lease agreements with government or government-related tenants. This type of lease structure can offer relatively predictable rental income streams, which in turn can support regular dividend distributions. REITs like PSTL are popular among income-oriented investors because of their potential for high dividend yields, though their share prices can be sensitive to changes in interest rate expectations and real estate market conditions.

In the January 21 report, Zacks assigned Postal Realty Trust a #1 Strong Buy rank for income stock investors, suggesting analysts see strong earnings or cash flow ahead that could support dividend payments and possibly share price stability.

3. ZTO Express (Cayman) Inc. (ZTO)

ZTO Express is a leading express delivery firm in China. It operates a large logistics network providing package delivery services across domestic and international markets. As e-commerce continues to expand, so does demand for reliable logistics and shipping services, which can translate into revenue growth for established delivery companies like ZTO.

While many technology and logistics companies may reinvest profits back into expansion rather than pay large dividends, ZTO has been recognized on the income list for its ability to generate free cash flow, which can support shareholder returns such as dividends or stock buybacks. Its addition to the income stock list reflects Zacks’ assessment that ZTO’s earnings prospects and financial performance make it appealing on a risk-adjusted basis for investors focused on income potential.

Because global logistics demand has structural tailwinds — including growth in cross-border shopping and digital commerce — companies like ZTO that efficiently scale delivery services may continue to see earnings improvements. The inclusion of ZTO as a strong buy income stock signals confidence in its near-term earnings trajectory.

How Zacks Determines Income Stock Picks

Zacks uses a systematic approach to determine which stocks make its various lists. This includes evaluating earnings estimate revisions, analyst sentiment, valuation metrics, and cash flow potential. For income stocks specifically, the focus often includes looking at dividend history, payout ratios, and the sustainability of dividends in light of future earnings forecasts.

The Zacks Rank #1 (Strong Buy) is typically given to companies that have recently seen upward revisions in their earnings estimates from analysts or models. Such revisions can be a sign that the company’s business performance is expected to beat the broader consensus. Combining this with solid dividend potential can make a stock attractive to income-oriented investors.

It’s important to note that ranking systems are tools and not guarantees. All investing involves risk, and historical performance does not guarantee future results. Investors should conduct their own research and consider their financial goals before buying any investment. (This content is informational and not financial advice.)

Industry Diversity Among the Picks

The three stocks listed for January 21 span different sectors:

• Financial Services — BNP Paribas operates in banking and financial markets.
• Real Estate Investment Trusts (REITs) — Postal Realty Trust focuses on property income.
• Logistics & Delivery — ZTO Express operates in express shipping and logistics.

This diversity can appeal to investors who want income exposure across a range of economic segments rather than concentration in a single industry. Each sector has different drivers of growth and risk factors, which can help spread out potential volatility in an investment portfolio.

Income Investing: Long-Term Perspective

Investing for income often means setting expectations for steady returns over a longer time horizon, rather than quick gains. Dividends and other forms of distributions can provide a reliable source of cash flow, especially in retirement or for investors who prioritize regular income.

Key factors income investors consider include dividend yield, payout consistency, earnings stability, and balance sheet strength. A high dividend yield alone does not always indicate a good investment — sustainability and underlying earnings power matter just as much.

For example, a company that pays a very high dividend yield but does not have stable earnings may be more likely to cut its dividend in the future. Conversely, companies with moderate but growing dividends and strong earnings projections may offer more reliable long-term income potential.

Diversifying With Income Stocks

Diversification is a core principle of investing that helps reduce risk by spreading assets across different types of investments and industries. For income-focused portfolios, this can mean combining companies with dividend growth potential, REITs with robust payout policies, and other income-producing securities such as bonds or funds.

In the context of the Zacks list, combining global financial firms like BNP Paribas, real estate income producers like Postal Realty Trust, and logistics service providers like ZTO Express illustrates a diversified approach within the income stock segment.

Risks and Considerations

While income stocks can provide dividends, investors should be aware of potential risks:

• Market Volatility: Stock prices can fluctuate widely, affecting total return even if dividends remain stable.
• Dividend Cuts: Economic downturns or company-specific challenges can lead to dividend reductions.
• Interest Rate Sensitivity: REITs and other income securities can be sensitive to changes in interest rates.
• Sector-Specific Risks: Banking, real estate, and logistics each face unique regulatory, economic, or competitive pressures.

For these reasons, income investors often review not just dividend yields but also payout ratios, cash flow statements, and broader economic indicators.

Conclusion: Strategic Income Investing for Early 2026

The January 21, 2026 update from Zacks Investment Research highlights three income stocks with strong buy rankings that could be worth monitoring for their income potential and earnings outlook. By providing a mix of financial services, real estate income, and logistics industry exposure, this list offers a snapshot of opportunities for investors seeking dividend-oriented stocks.

Before making investment decisions, consider your risk tolerance, financial objectives, and the role each stock would play in your broader investment strategy. Income investing can be a powerful tool for long-term financial planning, especially when approached with careful research and risk management.

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