Heading into 2026, investors are looking for companies that offer not only reliable income but also steady long‑term growth as markets move beyond the recent AI‑driven rally. With interest rates expected to ease further, dividend‑paying stocks are becoming more attractive than low‑yield bonds or cash, offering a blend of stability and upside potential.
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Below are five high-yield dividend stocks that combine attractive payouts with solid fundamentals and room for growth in 2026.
1. Verizon Communications (VZ)
Verizon continues to stand out as one of the high-yielding stocks, offering a dividend yield of 6.74% far above the Communication Services sector average of 1.62%. The telecom giant has raised its dividend for 19 consecutive years and maintains a payout ratio below 60%, signaling sustainability.
With a low beta of 0.32, Verizon provides stability at a time when investors may be bracing for volatility.
2. Realty Income (O)
Known as “The Monthly Dividend Company,” Realty Income remains a popular choice among income investors. The REIT boasts a 99% occupancy rate and has raised its dividend more than 130 times, including a recent increase in December. It has a high dividend yield of 5.64% compared with the Real Estate sector’s average of 3.39%.
The company’s monthly payouts and diversified tenant base make it a reliable defensive play, especially if the broader market sees volatility in 2026.
3. Energy Transfer (ET)
Energy Transfer is one of the most reliable high-yield income plays in the Energy sector, thanks to its steady distribution growth and strong cash‑flow generation. The company benefits from a diversified portfolio of pipelines, storage assets, and natural‑gas infrastructure that produce stable, fee-based revenue. Its dividend yield of 8.11% is above the sector’s average of 6.39%.
With energy demand expected to stay strong, Energy Transfer remains well-positioned to sustain and potentially grow its distributions in the coming years.
4. Merck (MRK)
Merck has staged a strong recovery after a difficult 2024, with shares rebounding more than 25% in the past three months. The pharmaceutical giant offers a healthy dividend supported by consistent earnings and a growing drug pipeline. It has a high dividend yield of 3.26%, much above the Healthcare sector’s 1.56%.
Analysts from Scotiabank and Wells Fargo recently reiterated bullish price targets, citing strong momentum heading into 2026. For investors seeking a mix of income and defensive growth, Merck could be an attractive pick.
5. Coca‑Cola (KO)
Coca‑Cola has one of the most reliable dividend growth records in the market. It earned its place as a Dividend King with more than 60 consecutive years of dividend increases. Even in slower economic periods, KO’s pricing power and resilient consumer base help keep revenue stable. Its dividend yield of 2.9% surpasses the Consumer Defensive sector’s average of 2.55%.
The company’s global brand strength, steady demand for its beverages, and wide distribution network support a strong cash flow position. This allows the company to maintain its payout.
Which Stock Is a Good Buy?
Now, let’s use the TipRanks Stock Comparison tool to see how Wall Street analysts are rating VZ, O, KO, MRK, and ET, and which stock they believe has the strongest upside.
