Kicking off the new year with a strategic selection of dividend-paying equities is a proven approach for wealth building. This year’s curated list of 26 stocks to buy spans multiple sectors and income strategies, blending ultra-high yielders exceeding 6% with growth-oriented picks offering moderate payouts but exceptional upside potential. Whether you’re seeking stability or expansion, these equities deliver on both fronts.
The Income Aristocrats: 50+ Years of Consecutive Increases
Nothing speaks louder than consistency. These three dividend champions have raised payouts for over five decades, making them the gold standard for income investors:
Stock
Sector
Market Cap
Forward Yield
AbbVie (ABBV)
Pharmaceuticals
$405B
3%
The Coca-Cola Company (KO)
Beverages
$301B
2.9%
Walmart (WMT)
Retail
$888B
0.8%
AbbVie’s narrative is particularly compelling. Despite navigating the patent cliff when its flagship drug Humira lost exclusivity in early 2023, the pharmaceutical giant has orchestrated a remarkable turnaround. Today, it ranks among healthcare’s premier income vehicles for serious dividend chasers.
Government-Incentivized High Yields
The U.S. tax code rewards certain investment structures with exceptional distributions. Companies required to pass 90%+ of earnings to shareholders include:
Stock
Category
Market Cap
Forward Yield
Ares Capital (ARCC)
Business Development Company
$14B
9.5%
Realty Income (O)
Real Estate Investment Trust
$52B
5.7%
Realty Income deserves special mention—beyond its generous yield, it delivers monthly payouts and boasts 30 consecutive years of dividend growth. The monthly cadence appeals especially to investors seeking predictable cash flow.
Growth Giants That Also Pay
The “Magnificent Seven” rarely attract attention for dividends, yet three tech titans merit consideration as buy stocks that blend appreciation with modest income:
Stock
Focus
Market Cap
Forward Yield
Alphabet (GOOG/GOOGL)
Search & Cloud
$3.8T
0.27%
Apple (AAPL)
Consumer Tech
$4T
0.38%
Microsoft (MSFT)
Software & Cloud
$3.6T
0.75%
Alphabet particularly stands out for 2026. The company dominates artificial intelligence with a top-three cloud platform, leading large language models, and rapidly gaining traction in custom AI chips. For growth-focused income investors, it checks virtually every box.
Energy Sector Stalwarts: Reliable High Income
Energy has long been the go-to for serious dividend seekers. These four names offer compelling yields backed by essential infrastructure:
Stock
Specialization
Market Cap
Forward Yield
Chevron (CVX)
Integrated Oil & Gas
$306B
4.5%
Enbridge (ENB)
Midstream & Utilities
$104B
5.8%
Energy Transfer (ET)
Midstream
$56B
8%
Enterprise Products Partners (EPD)
Midstream
$69B
6.8%
Enbridge emerges as the sector’s crown jewel. Its pipeline network transports 30% of North American crude and roughly 20% of U.S. natural gas consumption. Adding to its appeal, Enbridge operates as North America’s largest natural gas utility with 31 consecutive years of dividend growth.
Utilities & Infrastructure: The Safe Haven Play
When markets turn turbulent, utility and infrastructure equities provide shelter. Seven names particularly appeal:
Stock
Asset Type
Market Cap
Forward Yield
Brookfield Infrastructure Partners (BIP)
Diversified Infrastructure
$16B
4.9%
Brookfield Infrastructure Corp (BIPC)
Diversified Infrastructure
$5B
3.8%
Brookfield Renewable Partners (BEP)
Clean Energy
$18B
5.5%
Brookfield Renewable Corp (BEPC)
Clean Energy
$7B
3.9%
Clearway Energy (CWEN)
Renewables
$7B
5.4%
Dominion Energy (D)
Traditional Utility
$50B
4.5%
Evergy (EVRG)
Regional Utility
$17B
3.8%
The Brookfield ecosystem deserves elaboration. Both renewable and infrastructure segments operate dual-share structures—partnerships (LPs) and corporate entities—allowing investors flexibility. These companies share parentage under Brookfield Asset Management (BAM), creating a cohesive ecosystem for diversified infrastructure exposure.
Undervalued Dividend Champions: Income Plus Upside
What surpasses solid income? That same income paired with bargain valuations. These six equities deliver both:
Stock
Industry
Market Cap
Forward Yield
Pfizer (PFE)
Pharmaceuticals
$142B
6.9%
Prudential Financial (PRU)
Financial Services
$40B
4.8%
UnitedHealth Group (UNH)
Healthcare
$300B
2.7%
United Parcel Service (UPS)
Logistics
$84B
6.6%
US Bancorp (USB)
Banking
$83B
3.8%
Verizon Communications (VZ)
Telecom
$172B
6.8%
All six trade at forward P/E multiples significantly below the S&P 500’s valuation level. UnitedHealth Group particularly stands out—after a disappointing 2025, the health insurance and pharmacy benefits giant appears primed for a meaningful 2026 recovery.
The Outlier: Extreme Yield Alert
For the aggressive income seeker, one unconventional addition rounds out the portfolio:
Stock
Structure
Market Cap
Forward Yield
FS Credit Opportunities (FSCO)
Closed-End Fund
$1.25B
12.8%
This closed-end fund operates similarly to business development companies through direct lending strategies. While its 12.8% distribution is eye-popping, investors should approach with appropriate caution regarding volatility and capital preservation.
The Bottom Line: A Diversified Income Strategy
From 50-year dividend aristocrats to government-incentivized structures, technology giants balancing growth with returns, energy infrastructure providers, and severely undervalued opportunities, this collection of 26 stocks to buy spans every income investor’s need. The combination of high current yield, growth potential, and valuation discipline creates a framework adaptable to various risk tolerances and investment horizons. Whether you’re building from scratch or optimizing existing positions, this lineup offers multiple pathways to build meaningful portfolio income for 2026.
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Your Guide to 26 High-Yield Stocks Worth Buying in 2026
Building a Powerhouse Income Portfolio
Kicking off the new year with a strategic selection of dividend-paying equities is a proven approach for wealth building. This year’s curated list of 26 stocks to buy spans multiple sectors and income strategies, blending ultra-high yielders exceeding 6% with growth-oriented picks offering moderate payouts but exceptional upside potential. Whether you’re seeking stability or expansion, these equities deliver on both fronts.
The Income Aristocrats: 50+ Years of Consecutive Increases
Nothing speaks louder than consistency. These three dividend champions have raised payouts for over five decades, making them the gold standard for income investors:
AbbVie’s narrative is particularly compelling. Despite navigating the patent cliff when its flagship drug Humira lost exclusivity in early 2023, the pharmaceutical giant has orchestrated a remarkable turnaround. Today, it ranks among healthcare’s premier income vehicles for serious dividend chasers.
Government-Incentivized High Yields
The U.S. tax code rewards certain investment structures with exceptional distributions. Companies required to pass 90%+ of earnings to shareholders include:
Realty Income deserves special mention—beyond its generous yield, it delivers monthly payouts and boasts 30 consecutive years of dividend growth. The monthly cadence appeals especially to investors seeking predictable cash flow.
Growth Giants That Also Pay
The “Magnificent Seven” rarely attract attention for dividends, yet three tech titans merit consideration as buy stocks that blend appreciation with modest income:
Alphabet particularly stands out for 2026. The company dominates artificial intelligence with a top-three cloud platform, leading large language models, and rapidly gaining traction in custom AI chips. For growth-focused income investors, it checks virtually every box.
Energy Sector Stalwarts: Reliable High Income
Energy has long been the go-to for serious dividend seekers. These four names offer compelling yields backed by essential infrastructure:
Enbridge emerges as the sector’s crown jewel. Its pipeline network transports 30% of North American crude and roughly 20% of U.S. natural gas consumption. Adding to its appeal, Enbridge operates as North America’s largest natural gas utility with 31 consecutive years of dividend growth.
Utilities & Infrastructure: The Safe Haven Play
When markets turn turbulent, utility and infrastructure equities provide shelter. Seven names particularly appeal:
The Brookfield ecosystem deserves elaboration. Both renewable and infrastructure segments operate dual-share structures—partnerships (LPs) and corporate entities—allowing investors flexibility. These companies share parentage under Brookfield Asset Management (BAM), creating a cohesive ecosystem for diversified infrastructure exposure.
Undervalued Dividend Champions: Income Plus Upside
What surpasses solid income? That same income paired with bargain valuations. These six equities deliver both:
All six trade at forward P/E multiples significantly below the S&P 500’s valuation level. UnitedHealth Group particularly stands out—after a disappointing 2025, the health insurance and pharmacy benefits giant appears primed for a meaningful 2026 recovery.
The Outlier: Extreme Yield Alert
For the aggressive income seeker, one unconventional addition rounds out the portfolio:
This closed-end fund operates similarly to business development companies through direct lending strategies. While its 12.8% distribution is eye-popping, investors should approach with appropriate caution regarding volatility and capital preservation.
The Bottom Line: A Diversified Income Strategy
From 50-year dividend aristocrats to government-incentivized structures, technology giants balancing growth with returns, energy infrastructure providers, and severely undervalued opportunities, this collection of 26 stocks to buy spans every income investor’s need. The combination of high current yield, growth potential, and valuation discipline creates a framework adaptable to various risk tolerances and investment horizons. Whether you’re building from scratch or optimizing existing positions, this lineup offers multiple pathways to build meaningful portfolio income for 2026.