tiprankstipranks
Advertisement
Advertisement

3 Best Dividend Stocks for Investors Seeking Passive Income in 2026

Story Highlights
  • Sunoco (SUN), Southwest Gas (SWX), and Steve Madden (SHOO) stand out as reliable dividend payers for passive income investors in 2026.
  • Sunoco offers steady, contract‑based cash flow from fuel distribution, supporting a consistent, high‑yield payout.
  • Southwest Gas provides stable, regulated earnings and dependable dividends backed by ongoing infrastructure and population growth in the Southwest.
  • Steve Madden delivers strong free cash flow from its footwear and accessories business, supporting a solid dividend while still investing in growth.
3 Best Dividend Stocks for Investors Seeking Passive Income in 2026

Dividend investors in 2026 are looking for stocks that offer steady income backed by real cash flow. With market volatility still lingering, companies with durable business models and reliable payouts stand out. Today, we have highlighted three stocks, Sunoco (SUN), Southwest Gas (SWX), and Steve Madden (SHOO), that offer high dividend yields and have long‑term growth prospects.

Claim 55% Off TipRanks

Using the TipRanks Stock Screener tool, we picked these three stocks because they have received a “Strong Buy” consensus rating from analysts.

1. Sunoco (SUN)

Sunoco is a dependable income stock in the Energy sector. The company’s fuel distribution model generates consistent, contract‑based cash flow, which supports its high dividend payout. Even in a choppy energy market, Sunoco benefits from long‑term supply agreements and stable fuel volumes. SUN pays a quarterly dividend of $0.92 per share, giving it a 6.88% yield, higher than the sector’s average of 6.5%.

Recently, RBC’s Elvira Scotto raised her Sunoco price target to $78 (11.4% upside potential), saying the company is set to beat its 2026 guidance after a strong Q1 and should keep delivering solid EBITDA growth into 2027.

2. Southwest Gas (SWX) 

Southwest Gas is a steady utility stock with regulated earnings, stable demand, and reliable dividends. It serves fast‑growing areas in the Southwest, where more people and new building projects keep natural gas use rising. The company benefits from steady rate‑base growth and predictable revenue. SWX offers a 3.07% yield, with a $0.62 dividend paid quarterly.

Wells Fargo analyst Shahriar Pourreza started coverage on Southwest Gas stock with a Buy rating and a $105 target, saying the utility stands out in the natural gas group as a solid, fairly priced growth play.

3. Steve Madden (SHOO)

Steve Madden has strong free cash flow as it keeps tight control of inventory and is growing its direct-to-consumer business. The footwear brand’s solid balance sheet allows it to keep paying dividends while still putting money into growth. This makes SHOO a good pick for investors who want income and retail exposure. SHOO has a dividend yield of 2% and pays a quarterly dividend of $0.21.

Williams Trading’s Sam Poser raised his price target on Steven Madden stock to $52 after a strong Q1 and higher FY26 revenue outlook driven by solid full‑price sales across Steve Madden, Dolce Vita, and Kurt Geiger.

Disclaimer & DisclosureReport an Issue

1