Best Dividend Stocks 2026: Top 16 High-Yield Picks
Looking for the best dividend stocks to buy in 2026? We've compiled 16 top picks from two trusted sources: Morningstar's undervalued dividend stocks and Sure Dividend's high-yield recommendations.
These stocks offer yields ranging from 2.5% to 8%+, covering multiple sectors including utilities, REITs, energy, and consumer staples. Each pick comes with analysis to help you decide if it fits your portfolio.
2026 Top Dividend Stocks Quick Reference
Morningstar Undervalued Dividend Stocks
Morningstar identifies undervalued stocks using their proprietary fair value estimates. These picks trade below intrinsic value while offering solid dividend yields.
VZ – Verizon
Largest U.S. wireless carrier with stable cash flows from 145 million wireless connections. Trading at a significant discount to fair value with one of the highest yields in the market.
CLX – Clorox
Household products giant behind Clorox bleach, Pine-Sol, and Hidden Valley. Recovering from supply chain challenges with strong brand loyalty.
DVN – Devon Energy
U.S. shale oil producer with variable dividend model tied to cash flow. High yield potential in elevated energy price environments.
DUK – Duke Energy
Regulated utility serving 8 million customers across the Southeast and Midwest. Predictable earnings growth with infrastructure investments.
KHC – Kraft Heinz
Food giant with iconic brands like Heinz, Kraft, Oscar Mayer, and Philadelphia. Turnaround story with cost efficiencies driving margin improvement.
ET – Energy Transfer
Midstream energy giant with 130,000+ miles of pipelines. One of the highest-yielding picks with strong distribution coverage.
DOC – Healthpeak Properties
Healthcare-focused REIT specializing in life science and medical office buildings. Benefiting from aging demographics and biotech growth.
LNT – Alliant Energy
Regulated utility serving Iowa and Wisconsin with focus on renewable energy transition. Steady 5-7% EPS growth target.
MDLZ – Mondelez
Global snack leader owning Oreo, Cadbury, and Ritz. Lower yield but consistent dividend growth with emerging market exposure.
Sure Dividend High-Yield Picks
Sure Dividend focuses on stocks with sustainable high yields and long dividend growth track records. Many of these are Dividend Kings and Aristocrats.
MO – Altria Group
Tobacco giant and Dividend King with 55 years of dividend growth. Despite secular decline in smoking, strong pricing power maintains cash flows.
EPD – Enterprise Products
Largest midstream MLP with 50,000+ miles of pipelines. Investment-grade credit rating with 26 consecutive years of distribution growth.
UVV – Universal Corporation
Global tobacco leaf merchant and Dividend King. Lesser-known but highly reliable with 54 years of dividend increases.
HPQ – HP Inc
PC and printer manufacturer generating consistent cash flow. Aggressive share buyback program complements dividend growth.
NNN – NNN REIT
Triple-net lease REIT with 35 consecutive years of dividend increases. High-quality retail tenants with long-term lease agreements.
EIX – Edison International
California electric utility serving 15 million people. Rate base growth from grid modernization and wildfire mitigation investments.
Featured: Monthly Dividend Champion
O – Realty Income
The "Monthly Dividend Company" paying dividends since 1969. Triple-net lease REIT with 15,000+ properties and monthly dividend payments.
How We Selected These Stocks
Morningstar Criteria
- Trading below fair value estimate
- Wide or narrow economic moat
- Sustainable dividend coverage
- Quality management assessment
Sure Dividend Criteria
- High current yield (5%+)
- Long dividend growth history
- Payout ratio sustainability
- Sector diversification
Sector Distribution
Our 2026 picks span multiple sectors for diversification:
Key Risks to Consider
Utilities, REITs, and high-yield stocks often decline when rates rise.
Heavy weighting in energy and utilities—diversify with growth stocks.
High yields sometimes signal distress. Monitor payout ratios carefully.
The Bottom Line
Our 2026 dividend stock picks offer something for every income investor—from high-yield energy MLPs to steady utility dividends to monthly-paying REITs.
The key is matching stocks to your goals: higher yields come with more risk, while lower yields often mean more reliable dividend growth. Consider building a diversified portfolio across multiple sectors and yield levels.
Calculate Your Dividend Income
Use our dividend calculators to project your potential income from these top picks.
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