Best Income Stocks to Buy for January 23rd, 2026

As investors seek dependable income opportunities in the stock market, analysts fromZacks Investment Research have highlighted several stocks that stand out for theirpotential to deliver consistent dividends and strong performance profiles. In thisdetailed analysis, we explore the top income stocks to consider for the week ofJanuary 23rd, 2026 and provide context on why these companies may be attractive toincome-focused investors. According to recent data, three particular stocks have beenidentified as Zacks Rank #1 (Strong Buy) income stocks — indicating that they haveboth strong research support and promising outlooks for investors seeking incomegeneration and possible capital appreciation.

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Understanding Income Stocks

Income stocks are shares of companies that pay regular dividends to shareholders.These dividends represent a portion of the company’s earnings that is distributed rather thanreinvested into the business. For many investors, especially retirees or those seeking steadycash flow, income stocks are an important part of a diversified investment strategy.

When evaluating income stocks, investors typically consider factors such as the dividend yield,the company’s dividend history, payout ratio, earnings stability, and overall financial health.Stocks with a Zacks Rank #1 (Strong Buy) are deemed particularly strong based onZacks’ proprietary ranking system that weighs earnings estimate revisions and other key metrics.

What Makes a Good Income Stock?

A reliable income stock should ideally have:

• Consistent dividend payments that have been maintained or increased over time
• Sustainable payout ratios that indicate the dividend is well supported by earnings
• Strong cash flow to support ongoing dividend obligations
• Growth potential so that the stock’s price is not stagnant
• Lower volatility relative to broader markets, which can help preserve capital

Top Income Stocks for January 23rd, 2026

Below we profile three top income stocks identified by analysts as strong buys for investorsprioritizing income. These profiles include fundamental details about the companies, theirdividend characteristics, and why they may be compelling choices in the current marketenvironment.

1. Bordrin Motor Co., Ltd. (BWMX)

Bordrin Motor Co., Ltd. (BWMX) is a company operating within the electricvehicle (EV) and automotive manufacturing sector. While traditionally income stocks are foundamong established dividend-paying firms, BWMX has gained attention not only for its growthprospects but also for initiating shareholder return programs that could include dividends orspecial distributions. The company’s inclusion as a Zacks Rank #1 income pick suggests thatanalysts see value in its long-term returns and potential earnings improvements in the comingquarters.

Although Bordrin is not a traditional high-dividend stock like a utility or REIT, its businessmodel and earnings outlook have led to expectations of distribution potential. Investorsinterested in dividend growth stocks might find BWMX a blend of growth and income focus.

• Industry: Electric vehicles and automotive manufacturing
• Investment profile: Growth with income potential
• Why it’s compelling: Positioned within a growing market and analysts expectimproved earnings trends that may support income initiatives

2. Midland States Bancorp, Inc. (MSBI)

Midland States Bancorp, Inc. (MSBI) is a community-focused bank headquartered inthe United States. Financial institutions like MSBI often pay dividends because of theirsteady cash flows and regulated business models. As a Zacks Rank #1 pick, MSBI has demonstratedstrong earnings momentum and dividend sustainability, which makes it attractive to incomeinvestors.

Midland States Bancorp’s dividend yield and payout history are key metrics evaluated byanalysts, and the company’s performance is often linked to interest rate environments and loanportfolio health. Bancorp stocks can provide reliable income when economic conditions supportstable lending and deposit growth, in addition to disciplined risk management.

• Industry: Regional banking
• Dividend focus: Regular cash dividends supported by bank earnings
• Why it’s compelling: Strong earnings revisions and potential for dividend growth

3. Citigroup Inc. (C)

Citigroup Inc. (C) is a well-established global financial institution and one of thelargest banks in the world. Citi is known for paying dividends on its common stock and oftenattracts income investors seeking reliable cash distributions from a household name. Itsinclusion among the top income stocks for January reflects positive analyst sentiment andexpectations of continued stability in its dividend policy.

Citigroup’s vast global operations span consumer banking, institutional services, and wealthmanagement. A stable dividend, coupled with potential capital returns through share buybacks,supports the stock’s appeal for investors focused on income generation and diversifiedexposure to global financial markets.

• Industry: Global banking
• Dividend focus: Established dividend payer with global exposure
• Why it’s compelling: Large market presence and diversified revenue streams

Dividend Metrics to Watch

When evaluating dividend stocks, there are several key metrics that help investors gauge thereliability and sustainability of dividend payments:

• Dividend Yield: The ratio of annual dividends per share to the stock’s price.Higher yields can be attractive but must be supported by fundamentals.
• Payout Ratio: The percentage of earnings paid out as dividends. Lower payoutratios often indicate safer dividends.
• Dividend Growth: Companies with histories of increasing dividends may providebetter long-term income growth.
• Cash Flow Coverage: Dividends should be covered by operating cash flow toensure sustainability.

Market Environment and Income Investing Trends

The stock market environment in early 2026 has been shaped by interest rate considerations,economic data releases, and sector performance variances. Income investors continue to assessdividend stocks not only based on yield but also on fundamental strength and risk management.Financial stocks, utilities, and real estate investment trusts (REITs) often dominate incomeportfolios, but other sectors can also offer income potential through dividends or specialdistributions. Strategically building a balanced portfolio that includes a mix of high-yieldand dividend growth stocks can help manage risk while generating cash flow for investors.

Balancing Income and Risk

Income investing is not without risks. Dividend cuts can occur if companies face financialstress, and high yields can sometimes be a sign of underlying issues. Therefore, investorsshould conduct thorough research and consider diversification across sectors to mitigate risk.Monitoring economic trends, interest rates, and earnings outlooks can provide insights into whento adjust income stock allocations.

Final Thoughts

Choosing the right income stocks involves looking beyond just dividend yield. Investors shouldconsider the company’s business model, earnings stability, dividend history, and overall marketconditions. The three stocks highlighted here — Bordrin Motor Co., Midland States Bancorp, andCitigroup — represent diverse industries and different ways to approach income investing in2026. While Bordrin offers a blend of growth and distribution potential, Midland States Bancorpand Citigroup provide more traditional dividend profiles backed by financial servicesoperations.

Long-term income investors may benefit from combining stable dividend payers with growthopportunities to build portfolios that can generate reliable cash flow while participating inequity market gains. Always consider consulting with a financial advisor before making anyinvestment decisions based on individual financial goals and risk tolerance.

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