This Dividend Safety Stock Is Outperforming the S&P 500 in 2026

Owens Corning (OC) is experiencing a strong year-to-date performance, up 37.14% as of mid-August 2026, surpassing the S&P 500 Index's 13.65% gain. The stock's growth has placed it among a select group of large-cap dividend safety stocks. Despite a mixed housing environment, OC has shown solid execution, with second-quarter revenue from continuing operations remaining flat at $2.8 billion and generating $199 million in free cash flow.

Investors are attracted to OC's lower valuation metrics, including a 15.72 times trailing price-to-earnings ratio and a 4.45 times price-to-cash-flow multiple, compared to sector medians of 22.71 and 15.27, respectively. The company offers a forward annual dividend of $3.16 per share, yielding 2.03%, and paid a quarterly dividend of $0.79 per share.

OC's recent second-quarter report revealed revenue of $2.76 billion, essentially unchanged year-over-year but exceeding analyst estimates by 4%. The company reported adjusted EPS of $3.93, surpassing the $3.09 consensus by 27.2%, and adjusted EBITDA of $660 million, exceeding estimates by 16.6% and resulting in a 23.9% margin. OC's operating margin remained steady at 17.5%, matching the prior quarter despite inflationary pressures.

The company generated $244 million in operating cash flow, up 258.44% year-over-year, and returned $264 million to shareholders through repurchases and dividends. Owens Corning manufactures roofing, insulation, and door products for residential and commercial construction markets in North America and Europe. With a stronger portfolio focus and fresh finance leadership, OC's dividend-safety narrative has been strengthened by recent divestitures and a clearer framework for growth and shareholder returns.

Wall Street maintains a "Moderate Buy" rating on OC, with an average price target of $169.53, implying a 9.8% upside from its current price.