Here are the best dividend-focused stocks to buy right now, according to experts

Zaven Boyrazian highlights a couple of dividend-focused stock picks from institutional analysts that could deliver impressive results in 2026.

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As 2026 kicks off, investors are already busy hunting for the best stocks to buy. And while there are lots of potential candidates for top performers this year, professional institutional investors have their sights locked onto just a handful of quality UK shares.

Here are what the pros think are worth considering.

1. Incoming rebound for pizza?

Domino’s Pizza Group (LSE:DOM) had a pretty rough 2025. Weak economic conditions hampered demand for pizza takeaway, resulting in lacklustre growth. Throw in the added pressure of inflation on its bottom line leading to earnings stumbling and, ultimately, the CEO stepped down from his role.

With all that in mind, seeing Domino’s shares fall by over 30% since January last year isn’t a major surprise. But could this be a buying opportunity? The analysts at Peel Hunt certainly seem to think so.

With Domino’s free cash flow remaining strong supporting its 6.2% dividend yield, its technological competitive advantages intact, and its price-to-earnings ratio sitting at just 9.1, the stock’s valuation now looks divorced from the underlying business. And subsequently, the shares could see a rapid recovery once UK economic conditions recover.

Of course, there’s no guarantee this recovery will happen anytime soon. If fragile consumer confidence persists throughout 2026 and into 2027, Domino’s shares could remain in dirt-cheap territory for a while. Nevertheless, with the challenges surrounding the company seemingly temporary, it could be a dividend stock worth investigating further.

2. Business communications

Another stock to buy, according to Peel Hunt, is the business communications specialist Gamma Communications (LSE:GAMA). The firm specialises in helping corporations move away from traditional phone systems and use cloud-based internet communications instead.

Like Domino’s, the last 12 months have also been a bit rough for the FTSE 250 stock, falling by more than 30%.

Wider economic uncertainty has seen a sharp drop in demand for Gamma’s services among small- and medium-sized businesses (SMBs) in the UK. And alongside other headwinds, management went on to reduce its earnings guidance, spooking investors in the process.

Yet the experts at Peel Hunt, once again, see a buying opportunity. As UK economic conditions improve, IT investments among SMBs are expected to recover. And looking to the longer term, the secular tailwind of switching to cloud-based communications remains intact.

Perhaps a yellow flag for investors to consider carefully is the upcoming departure of the group’s CFO in March. Considering the business is at a critical junction, navigating through a tough operating landscape, a leadership transition introduces significant execution risk, especially if a talented successor isn’t identified in time.

Nevertheless, with its long-term trajectory still intact and the price-to-earnings ratio sitting at just 12.7, the bar for performance seems to have been set relatively low.

For income investors, the yield may not look too impressive at just 2.3%. But with the company currently on track to deliver its 10th consecutive year of dividend hikes backed by cash flows, this payout could eventually grow to something far more substantial in the long run.

Zaven Boyrazian has no position in any of the shares mentioned. The Motley Fool UK has recommended Domino's Pizza Group Plc and Gamma Communications Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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