Sure, the S&P 500 (^GSPC +1.20%) has bounced back after flirting with a correction. However, many growth stocks remain highly volatile. Bond yields have risen. Whether they stay at attractive levels depends largely on the Federal Reserve’s next actions — and the Fed is virtually paralyzed by uncertainty about inflation and the job market.
Now is a great time to invest in dividend stocks with above-average yields, though. The elite stocks in this group pay juicy dividends, generate strong cash flow, have resilient business models, and have long track records of being dependable sources of income. Here are my picks for the best high-yield dividend stocks to buy for 2026 and beyond.
Image source: Getty Images.
1. AbbVie
AbbVie‘s (ABBV 0.34%) forward dividend yield of 3.3% is only a hair above two times the 1.1% yield of the S&P 500, which is the threshold I use for high-yield dividend stocks. However, the big pharma stock still made the cut and offers investors much more than just an attractive yield.
I’d put AbbVie’s status as a Dividend King at the top of the list. Dividend Kings are stocks that have increased their dividends for at least 50 consecutive years. AbbVie has increased its dividend for 53 consecutive years, including the time it was part of Abbott Labs (ABT +1.40%).
Today’s Change
(-0.34%) $-0.70
Current Price
$208.28
Key Data Points
Market Cap
$369B
Day’s Range
$207.87 – $212.25
52wk Range
$168.54 – $244.81
Volume
300K
Avg Vol
7.1M
Gross Margin
70.12%
Dividend Yield
3.23%
Value investors should like AbbVie almost as much as income investors. The stock trades at only 14.3 times forward earnings, well below the average forward price-to-earnings ratios of 20 for the S&P 500 and 17.4 for the S&P 500 healthcare sector.
This high-yield dividend stock should also deliver solid growth over the next few years. AbbVie’s lineup features several drugs with strong sales momentum, especially autoimmune disease drugs Rinvoq and Skyrizi. The company’s pipeline includes multiple promising late-stage programs that could drive future growth.
2. Enbridge
Enbridge (ENB +0.23%) offers a mouth-watering dividend yield of 5.4%. The company also has a strong track record of dividend hikes, having increased its dividend for 31 consecutive years.
Many energy sector stocks are volatile, swinging up and down with oil prices. Enbridge, though, is more stable. It operates over 18,000 miles of crude oil pipeline and over 19,000 miles of natural gas pipeline. These pipelines are similar to toll roads, charging based on volume rather than commodity prices.
Today’s Change
(0.23%) $0.12
Current Price
$52.69
Key Data Points
Market Cap
$115B
Day’s Range
$51.72 – $52.77
52wk Range
$43.59 – $55.44
Volume
308K
Avg Vol
5.3M
Gross Margin
32.74%
Dividend Yield
5.20%
In addition to being a top pipeline stock, Enbridge is the largest natural gas utility in North America by volume. It delivers around 9.3 billion cubic feet of natural gas each day to 7.1 million customers. The utility component of the company’s business provides it with even greater stability.
There’s even more good news about this stock. Enbridge has visible growth through the end of the decade, with roughly $50 billion of opportunities identified. The company expects to deliver growth across all aspects of its business, especially in natural gas transmission.
3. Realty Income
Realty Income‘s (O +0.65%) dividend yield currently stands at 5%. Like Enbridge, this real estate investment trust (REIT) has increased its dividend for 31 consecutive years. One key differentiator for Realty Income, though, is that it pays monthly rather than quarterly dividends.
The REIT’s highly diversified portfolio is a big plus. Realty Income owns 15,511 properties with an occupancy rate of 98.9%. Its client base includes 1,761 tenants representing 92 industries. Many of its tenants operate in resilient markets, such as grocery stores, convenience stores, home improvement stores, and dollar stores.
Today’s Change
(0.65%) $0.42
Current Price
$65.06
Key Data Points
Market Cap
$61B
Day’s Range
$64.27 – $65.27
52wk Range
$54.38 – $67.94
Volume
160K
Avg Vol
6.3M
Gross Margin
48.73%
Dividend Yield
4.97%
I like Realty Income’s track record during challenging periods. For example, the REIT’s occupancy rate has never fallen below 96.6% this century — even during the Great Recession and the COVID-19 pandemic.
What about Realty Income’s growth prospects? They look good, too. The company has particularly promising opportunities in Europe, where the total addressable market is $8.5 trillion and competition is limited.
Leave a comment