Want Safe Dividend Income in 2026 and Beyond? Invest in the Following 3 Ultra-High-Yield Stocks.
- - Want Safe Dividend Income in 2026 and Beyond? Invest in the Following 3 Ultra-High-Yield Stocks.
Keith Speights, The Motley FoolJanuary 5, 2026 at 4:05 AM
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Key Points -
Enbridge's low-risk business model makes its juicy dividend safe.
Realty Income offers an especially impressive track record of dividend increases.
Verizon's growing free cash flow should give income investors a warm and fuzzy feeling about its dividend.
10 stocks we like better than Enbridge ›
Safe and sound. Those are two words that income investors love to hear about the stocks they buy. Unfortunately, those descriptions don't always apply to stocks that pay exceptionally high dividend yields.
However, you don't have to trade off safety for higher income. Want safe dividend income in 2026 and beyond? Invest in the following three ultra-high-yield stocks.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
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1. Enbridge
Enbridge (NYSE: ENB) describes its business profile as "low-risk" and "utility-like." I think the evidence supports those claims.
Over the last 20 years, Enbridge has generated a higher total shareholder return compound annual growth rate (CAGR) than the S&P 500 (SNPINDEX: ^GSPC). However, the stock's volatility rivaled that of utility stocks, putting it well below the S&P 500 and other midstream stocks.
What has enabled Enbridge to deliver those superior risk-adjusted returns? Its low-risk and utility-like businesses. The company operates the world's longest network of pipelines, transporting a significant portion of North American crude oil and natural gas. Thanks to acquisitions in recent years, Enbridge is also the continent's largest natural gas utility based on volume.
This energy leader's forward dividend yield tops 5.8%. Even better, Enbridge declared its 31st consecutive annual dividend increase last month. The company expects to grow its dividend by around 5% per year after 2026.
2. Realty Income
Realty Income (NYSE: O) boasts a track record of 29 consecutive years of positive total operational returns (the sum of annual funds from operations per share growth and dividend yield). That's impressive considering the period included the Great Recession and the COVID-19 pandemic.
The secret to the company's stability is its real estate portfolio. Realty Income ranks as the sixth-largest global real estate investment trust (REIT). It owns 15,542 properties leased to 1,647 clients representing 92 industries.
This REIT has been in business for 56 years. It has solid A3 and A- credit ratings from Moody's (NYSE: MCO) and S&P Global (NYSE: SPGI), respectively. Realty Income's growth prospects also look promising, particularly with the increasing demand for data centers and a significant opportunity in Europe.
If you're seeking an impressive streak of dividend hikes, Realty Income has it. Not only has the company increased its dividend for 30 consecutive years, but it has also increased the dividend for 133 consecutive quarters. Since listing its shares on the New York Stock Exchange in 1994, the REIT has increased its dividend by a CAGR of 4.2%. Realty Income's forward dividend yield currently stands at nearly 5.8%.
3. Verizon Communications
Can you imagine a world where people no longer use their cellphones in 2026? Me either. Perhaps down the road, a new device could render cellphones obsolete. Even if that happens, though, wireless communications will still be critical. That's great news for Verizon Communications (NYSE: VZ).
Verizon is one of the world's largest telecommunications companies, serving millions of businesses and consumers. It competes with only a handful of rivals. The substantial capital expenditures required to operate a telecom business present a high barrier to entry for new competitors.
In September 2025, Verizon announced its 19th consecutive year of dividend increases. The company's forward dividend yield is currently 6.8%. Is such an attractive dividend payout sustainable? I think so. Verizon's free cash flow continues to grow and is more than sufficient to fund its dividend program.
Granted, Verizon is unlikely to deliver jaw-dropping growth. Its revenue increased by only 1.5% year-over-year in the third quarter of 2025, with adjusted earnings per share rising by 1.7%. However, the company could have greater growth opportunities near the end of the decade as 6G networks, which support a wide range of new capabilities including holographic communications, become available.
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Keith Speights has positions in Enbridge, Realty Income, and Verizon Communications. The Motley Fool has positions in and recommends Enbridge, Moody's, Realty Income, and S&P Global. The Motley Fool recommends Verizon Communications. The Motley Fool has a disclosure policy.
Source: “AOL Money”
