The final quarter of 2025 is about to kick off, and it’s time to start talking about 2026. The equity strategy team at RBC is having this conversation, and their thoughts bear some examination. For now, RBC’s focus is on how today’s market-rally conditions are likely to extend into next year, as embodied in their preliminary S&P 500 target of 7,100 for the year ahead.
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Achieving that target will translate into a gain of 6.8% from current levels. That implies a considerably slower annual gain next year than we’ve seen in 2025, but it still supports an upbeat outlook. Lori Calvasina, head of RBC’s US equity strategy team, writes of the bank’s outlook, “The message we are trying to send with our analysis today is that the S&P 500 appears to be on a path higher over the next 12 months and into the 2nd half of 2026… We do remain on guard for choppy conditions in US equities between now and year-end 2025. Our main concerns have been poor seasonal patterns in September and October in recent years as well as stalling valuations in the S&P 500, top 10 market cap names, and Nasdaq 100…”
RBC’s stock analysts are taking this view and running with it – but with a twist. They’re looking for stocks that will add a significant dividend return to next year’s market gains – shares that can bring up to 7% from the dividend, on top of the predicted market gains. Let’s take a closer look at a couple of the bank’s dividend choices; here they are, presented along with RBC’s comments.
MPLX LP (MPLX)
The first stock on our list here is MPLX, a $52 billion player in North America’s energy sector midstream segment. Midstream companies own and operate the vital infrastructure needed to transport and store hydrocarbon fuels – everything from oil and gas pipelines, to river barges and railway tanker cars, to transfer facilities, to storage tank farms and export terminals. MPLX currently operates a network of assets that includes natural gas gathering and processing facilities, light product and heavy oil terminals, maritime transport facilities, inland river transport, and pipelines that connect all of this together.
Recently, MPLX has been conducting transactions designed to streamline its operations and to expand its active natural gas assets. In August, the company entered into a billion-dollar agreement to divest its gathering and processing assets in the Rocky Mountain region. The agreement, with Harvest Midstream, is expected to close during the fourth quarter of this year.
Meanwhile, at the beginning of September, MPLX closed on its acquisition of Northwind Midstream. The acquisition will bring Northwind’s assets – including sour gas gathering, treating, and processing services in Lea County, New Mexico – into MPLX’s network, and provide significant enhancements to MPLX’s value chains for Permian natural gas and natural gas liquids. MPLX paid $2.375 billion for the acquisition, which was conducted in cash and will be funded by debt financing.
The company finished 2Q25 with $1.4 billion in distributable cash flow, which allowed the return of $1.1 billion in capital to MPLX shareholders. MPLX’s capital returns included the regular quarterly dividend, which was last declared on June 30 and paid out on August 15. At the current $0.9565 per common share, the dividend annualizes to $3.83 per share and gives a forward yield of 7.5%.
For RBC, the key point here is that MPLX remains on a sound growth strategy. The bank’s outlook is laid out by 5-star analyst and energy sector expert Elvira Scotto, who writes, “MPLX continues to execute on its growth strategy. We believe MPLX can continue to meaningfully grow its distribution, supported by its organic and inorganic growth plans. We view MPLX as one of the most compelling income plays among large-cap MLPs with an attractive current yield >7%.”
Scotto goes on to rate this stock as Outperform (Buy), and her price target of $58 implies a one-year upside potential of 13%. Add in the dividend yield, and the total return here can exceed 20%. (To watch Scotto’s track record, click here.)
The Strong Buy consensus rating on MPLX is based on 7 recent reviews, which break down to 6 Buys and 1 Hold. The shares are priced at $51.28 and their $58.29 average price target indicates room for a 14% gain by this time next year. (See MPLX stock forecast.)
Artisan Partners Asset Management, Inc. (APAM)
Next on our list is Artisan Partners, an asset management firm based in Milwaukee, Wisconsin but operating with a global footprint and offices in such major global hubs as New York, Atlanta, Chicago, Boston, London, Hong Kong, Singapore, and San Francisco. Artisan has $178.1 billion in total assets under management, as of August 31 this year. This followed, and improved upon, the company’s record AUM of $175.5 billion reported at the end of Q2.
Artisan takes a multifaceted approach to its investing, using an array of strategies to build a comprehensive portfolio that is designed to generate strong returns. The company has been notably successful at this, and in its last set of financial results, covering 2Q25, Artisan boasted that its High Income strategy, the flagship of its credit team, has consistently outperformed its benchmark after fees, by 170 basis points annually for the past 11 years.
The firm’s International Value strategy has also proven successful over the long term, compounding its capital by 11% per year for the past 23 years – and outperforming its benchmark by 418 basis points after fees.
Along with its strong portfolio growth, Artisan pays out a variable quarterly dividend, which was last paid on August 29 at a rate of 73 cents per share. The current quarterly dividend payment annualizes to $2.92 per common share and gives a forward yield of 6.7%.
Artisan’s dividend policy is supported by the company’s steady revenue and profits. In its 2Q25 report, the firm’s quarterly revenue came to $282.8 million, up 4.4% from the prior year and beating the forecast by $7.9 million. The bottom line, reported as a non-GAAP EPS of 83 cents, was up a penny from 2Q24 and was also a penny better than had been expected.
Among other factors, RBC analyst Kenneth Lee finds Artisan’s diverse investment strategy attractive, writing following the Q2 readout, “Mgmt’s comments suggest more focus on inorganic, bolt-on M&A/liftout opportunities compared to the recent past. We continue to favor APAM’s focus on differentiated outcomes for its clients, high-value-add strategies and capital return through dividends story.”
Looking ahead, Lee – another of RBC’s 5-star analysts – puts an Outperform (Buy) rating on APAM, along with a $51 price target that suggests a 16% gain heading into next year. Add in the forward dividend yield, and investors may see a return of nearly 23% in the next 12 months. (To watch Lee’s track record, click here.)
Overall, Artisan maintains a Moderate Buy consensus rating from the Street’s analysts, based on 3 reviews that split to 1 Buy and 2 Holds. The shares are currently trading for $43.89 and their $46.33 average price target implies a modest gain of 5.5% on the one-year horizon. (See APAM stock forecast.)
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Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.