2 High-Yield Dividend Stocks to Buy in 2026

Stocks with high dividend yields can look very rewarding. Who doesn't like getting 4%, 5%, even 6% or more back on their investment each year, before factoring in capital gains? But these stocks can just as easily woo investors, only for major problems to surface. Next thing you know, a company cuts the dividend, and investors are sitting on steep losses.

It doesn't have to be that way. Some stocks have high dividend yields and strong business fundamentals. These stocks can be game changers for investors looking to boost their portfolios with dividend income.

Here are two top high-yield dividend stocks to buy and hold. They can easily afford their huge dividends, and their compelling price tags make them strong buys for 2026.

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1. A 6.6% yield and solid earnings growth make Verizon a no-brainer

Verizon Communications (NYSE: VZ) is a wireless carrier and one of only three companies that dominate the U.S. communications market. Verizon has approximately 146.8 million wireless retail connections and 16.8 million broadband connections. Connectivity is practically as essential to modern life in America as gas and electric utility service. People depend on their smartphones and devices to communicate, socialize, and work.

As a result, Verizon generates steady revenue streams, making it a fantastic dividend stock. Management has increased the dividend for 20 consecutive years and counting. Importantly, Verizon can afford the payout. Management expects the business to earn at least $21.5 billion in free cash flow this year, which is cash profits left after capital reinvestment. That covers approximately $10 billion of Verizon's total dividend expenditures over the past year.

Historically, Verizon hasn't grown very fast, but that's starting to change. Connectivity is increasingly important in a world where artificial intelligence (AI) is driving enormous data traffic, and future technologies can require connection to control sources -- autonomous vehicles, for example.

Analysts currently expect Verizon to grow earnings by an average of 8% annually over the next three to five years. That growth and yield make Verizon a table-pounding buy at less than 9 times 2026 earnings estimates.

2. Buy Realty Income for its 5.1% yield and monthly payouts

Realty Income (NYSE: O) is one of the world's largest real estate investment trusts (REITs). These are companies that acquire and lease real estate, sharing their income with investors as nonqualified dividends. Realty Income has a global portfolio of 15,571 properties, focusing on retail tenants in recession-resistant industries. Realty Income uses net leases, in which the tenant is responsible for property maintenance, insurance, and taxes. This business model produces very stable rental streams.

Now, here's a sparkling dividend track record. Realty Income has raised its dividend 135 times since going public in 1994, over 31 consecutive years. It also pays a monthly dividend, giving investors steady income year-round.

Last but not least, Realty Income's 2026 guided funds from operations (FFO) per share of $4.41-$4.44 easily covers the $3.25 it has paid out over the past year. Funds from operations are a non-GAAP metric REITs use to quantify their earnings. The FFO coverage leaves a cushion for unexpected downturns, as investors saw during the COVID-19 pandemic.

Realty Income was never a growth stock; the company's annualized lifetime dividend growth rate is only 4.2%. Management has expanded into new markets in recent years to seek growth opportunities. That has sprinkled some industrial properties, data centers, and casinos into the portfolio.

But make no mistake, Realty Income is a tortoise, not a hare. Fortunately, it doesn't need to be, given that shares trade at only 14 times Realty Income's 2026 FFO guidance. A 5.1% dividend yield is simply icing on the cake.

Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Realty Income. The Motley Fool recommends Verizon Communications. The Motley Fool has a disclosure policy.