The constant barrage of artificial intelligence driving the hyperscaler complex massive spending spree is starting to fatigue many investors. With a war still in progress, albeit on a regional basis, in two sections of the world and government spending exploding the deficit higher, many across Wall Street are starting to agree that something has to give at some point, and it may be soon. With second-quarter earnings in full force, they need to come in strong with positive forward guidance. With the S&P 500 trading at 25.7 times trailing earnings, valuations as high as those of the dot-com era, many investors may be starting to wobble. Add in the forward 12-month earnings price to earnings at 23, which is also above the historical average of 18, and trouble could be brewing.
Hopes for rate cuts are effectively out the window, at least for now, as sticky inflation and higher energy prices could crimp corporate margins, and a cooling labor market adds in all the ingredients for a 10% sell-off. Add in the fact that July is a notoriously troublesome month for momentum investors, and many may want to derisk a high-beta portfolio while staying invested. We screened our 24/7 Wall St. defensive high-yield stock database for stocks investors could shift to now that are likely to hold up far better during a 10% or bigger sell-off. Five of our favorite companies hit our screens, and all are Buy-rated at the top Wall Street firms we cover, and all have paid dependable dividends uninterrupted for years.
Why do we cover defensive high-yield stocks?
Investors love defensive, high-yield dividend stocks because they offer dependable passive income streams and an excellent opportunity for solid total return. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the total return on an investment or portfolio consists of income and stock appreciation. At 24/7 Wall St., we have focused on dividend stocks for over 15 years because, despite the stock market’s ups and downs, many people need reliable passive income streams to supplement their income from employment or other sources such as Social Security and pensions.
Altria
This is one of the world’s largest producers and marketers of tobacco, cigarettes, and related products. This tobacco company offers value investors a great entry point. Altria (NYSE:MO | MO Price Prediction) manufactures and sells smokable and oral tobacco products in the United States. Altria is the undisputed yield leader among consumer staples Dividend Kings.
Altria leads its peer group with a high yet secure 5.91% dividend yield, backed by a stable 82% cash payout ratio. The company’s core strength relies on Marlboro, which holds a durable 40% share of the U.S. cigarette market and leverages pricing power to offset volume declines. Additionally, Altria’s low beta of 0.51 provides defensive, low-volatility insulation during broader market downturns.
The company primarily sells cigarettes under the Marlboro brand, as well as:
- Cigars and pipe tobacco, principally under the Black & Mild and Middleton brands
- Moist smokeless tobacco and snus products under the Copenhagen, Skoal, Red Seal, and Husky brands
- on! Oral nicotine pouches
- e-vapor products under the NJOY ACE brand
It sells its tobacco products primarily to wholesalers, including distributors and large retail organizations, such as chain stores.
Altria used to own over 10% of Anheuser-Busch InBev (NYSE: BUD), the world’s largest brewer. Last year, the company sold 35 million of its 197 million shares through a global secondary offering. That represents 18% of its holdings but still leaves 8% of the outstanding shares in its back pocket. Altria also announced a $2.4 billion stock repurchase plan partially funded by the sale.
UBS has a Buy rating with a $79 price target.
Enbridge
Enbridge (NYSE:ENB) owns and operates pipelines throughout Canada and the United States. This is an off-the-radar idea based in Canada, poised to break out to new highs soon, and pays a rich 6.96% dividend. Enbridge operates as an energy infrastructure company. Enbridge announced its 31st consecutive annual dividend increase in 2026, lifting the payout by another 3%, and has paid dividends for over 70 years. With roughly 98% of its annual earnings backed by long-term, fixed-rate contracts and regulated rate structures, the company stands out as one of the most defensive and reliable plays in the energy infrastructure sector. The company is the largest natural gas utility in North America by volume, delivering about 9.3 billion cubic feet daily to 7.1 million customers with a toll-road-like model that’s less exposed to price swings.
The company operates through five segments:
- Liquids Pipelines
- Gas Transmission and Midstream
- Gas Distribution and Storage
- Renewable Power Generation
- Energy Services
The Liquids Pipelines segment operates pipelines and related terminals in Canada and the United States to transport various grades of crude oil and other liquid hydrocarbons.
The Gas Transmission and Midstream segment invests in natural gas pipelines and gathering and processing facilities in Canada and the United States.
The Gas Distribution and Storage segment is involved in natural gas utility operations, serving residential, commercial, and industrial customers in Ontario, as well as in natural gas distribution and energy transportation activities in Quebec.
The Renewable Power Generation segment operates power-generating assets, including wind, solar, geothermal, and waste heat recovery facilities, as well as transmission assets, in North America and Europe.
The Energy Services segment provides energy marketing services to refiners, producers, and other customers, as well as physical commodity marketing and logistical services in Canada and the United States.
Royal Bank of Canada has an Outperform rating and a $79 target price.
Realty Income
This real estate investment trust has paid monthly dividends consistently for years. Top-rated Realty Income (NYSE:O) owns over 15,500 properties with a 98.9% occupancy rate across 1,761 tenants in 92 industries, many in strong categories like grocery stores and dollar stores. Occupancy has never fallen below 96.6% this century, even during the Great Recession and the COVID-19 pandemic. This is an ideal stock for growth and income investors seeking a safer contrarian idea for the rest of 2026, with a 5.12% dividend yield. Realty Income is an S&P 500 company that acquires and manages freestanding commercial properties that generate rental revenue under long-term net lease agreements with its commercial clients.
It is engaged in a single business activity: leasing property to clients, generally on a net basis. This business activity spans various geographic boundaries and encompasses a range of property types and clients across multiple industries. Widely considered the gold standard of monthly dividend stocks, Realty Income has been paying dividends since 1969. It has paid 667 consecutive monthly dividends as of early 2026 and increased its dividend 132 times since its 1994 IPO.
The company owns or holds interests in approximately 15,621 properties in all 50 states and:
- United Kingdom
- France
- Germany
- Ireland
- Italy
- Portugal
- Spain
With clients operating in 89 industries, its property types include retail, industrial, gaming, and other categories such as agriculture and office.
Its primary industry concentrations include:
- Grocery stores
- Convenience stores
- Dollar stores
- Drug stores
- Home improvement stores
- Restaurants
- Quick service
Jefferies has a Buy rating with a $69 target price.
VICI Properties
Vici Properties (NYSE:VICI) is a real estate investment trust based in New York City that specializes in casino and entertainment properties, paying a stellar dividend yield of 6.88%. This is one of the top picks across Wall Street in the net lease group and is ideal for more conservative investors seeking gaming exposure and a substantial dividend. It is an S&P 500 experiential REIT with one of the largest portfolios of market-leading gaming, hospitality, and entertainment destinations, including three iconic entertainment facilities on the Las Vegas Strip:
- Caesars Palace Las Vegas
- MGM Grand
- The Venetian Resort Las Vegas
VICI Properties owns 93 experiential assets across a geographically diverse portfolio of 54 gaming properties and 39 other experiential properties across the United States and Canada. The portfolio comprises approximately 127 million square feet and features approximately 60,300 hotel rooms, as well as over 500 restaurants, bars, nightclubs, and sportsbooks. Gaming revenue has proven remarkably resilient in recent downturns, and its triple-net lease structure means it collects rent regardless of tenant profitability swings.
Its properties are occupied by industry-leading gaming, leisure, and hospitality operators under these long-term, triple-net lease agreements.
VICI Properties has a growing array of real estate and financing partnerships with leading operators in other experiential sectors, including:
- Bowlero
- Cabot
- Canyon Ranch
- Chelsea Piers
- Great Wolf Resorts
- Homefield
- Kalahari Resorts
VICI Properties also owns four championship golf courses and 33 acres of undeveloped and underdeveloped land adjacent to the Las Vegas Strip.
The Bank of America price target for the Buy-rated shares is $34.
Verizon
Verizon Communications (NYSE:VZ) is an American multinational telecommunications company that continues to offer tremendous value. It trades at 9.13 times its estimated 2026 earnings and pays a 6.66% dividend. Verizon provides a range of communications, technology, information, and entertainment products and services to consumers, businesses, and government entities worldwide.
Verizon’s trailing 12-month interest coverage ratio is 4.6× to 5×, providing ample cushion for dividend payments. With a very predictable revenue stream from telecom services, the company has less exposure to commodity cycles. In addition, the large scale helps in financing and absorbing shocks. Publish rep[orts indicate that management has increased the dividend for 20 consecutive years and expects at least $21.5 billion in free cash flow this year.
It operates in two segments:
- Verizon Consumer Group
- Verizon Business Group
The Consumer segment provides wireless services across the United States through Verizon and TracFone networks, as well as through wholesale and other arrangements. It also provides fixed wireless access (FWA) broadband through its wireless networks and related equipment and devices, such as:
- Smartphones
- Tablets
- Smartwatches
- Other wireless-enabled connected devices
The segment also offers wireline services in the Mid-Atlantic and northeastern United States through its fiber-optic network, Verizon Fios product portfolio, and copper-based network.
The Business segment provides wireless and wireline communications services and products, including:
- FWA broadband
- Data
- Video and conferencing
- Corporate networking
- Security and managed network
- Local and long-distance voice
Network access services to deliver various IoT services and products to businesses, government customers, and wireless and wireline carriers in the United States and internationally.
Raymond James has an Outperform rating with a $56 target price.
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