2 High-Yield Dividend Stocks Worth Buying Before 2026 Ends

Source Motley_fool

Key Points

  • Verizon raised its guidance for a second straight quarter, backed by subscriber growth and stronger customer retention.

  • Pfizer declared its 352nd consecutive quarterly dividend while advancing 96 research programs, including 31 in phase 3.

  • Investors seeking steadier income may prefer Verizon, while those wanting growth and a high yield may opt for Pfizer.

  • 10 stocks we like better than Verizon Communications ›

With 2026 coming to a close, income investors still have opportunities to lock in attractive dividend yields while investing in long-term growth. Verizon Communications (NYSE: VZ) and Pfizer (NYSE: PFE) stand out for their established businesses, shareholder payouts, and growth catalysts. Here's why these two high-yield dividend stocks deserve a closer look before year-end.

Verizon's reliable dividend is backed by growing connectivity demand

A company whose essential service backs its payout is a good place to start. For income-focused investors, Verizon offers a strong combination of high yield, recurring revenue, and essential services. Wireless connectivity has become a necessity for households and businesses, providing a stable source of cash flow for Verizon.

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In its second-quarter results, Verizon reported improving subscriber growth, while mobility and broadband service revenue continued to grow. The company also added more than 1 million mobility and broadband connections during the first half of the year. As a result, management raised its full-year guidance for the second consecutive quarter, indicating stronger confidence in the company's growth outlook.

One encouraging development is Verizon's focus on improving customer retention instead of relying solely on aggressive promotions. Its updated wireless plans, bundled connectivity offerings, and loyalty initiatives give customers more reasons to stay. That means better customer economics can support profitability over time, especially as the company reins in acquisition costs for new customers.

For dividend investors, one of Verizon's strengths is the cash flow generated by its telecommunications business, which gets passed to shareholders. The company's board declared a quarterly dividend of roughly $0.71 per share in September 2026, which represents a forward dividend yield of approximately 6.5%. In other words, investors collect about $6.50 a year for every $100 invested.

That payout continues a long track record of dividend increases. Plus, the company highlighted its commitment to the dividend as part of its capital allocation strategy.

Another company, however, pairs its payout with a growing portfolio of medicines. Let's look at this one next.

An investor looking at a computer.

Image source: Getty Images.

A high yield with a strong growth pipeline

Pharmaceutical giant Pfizer offers a different route to high dividend income: an established pharmaceutical business with a growing portfolio of medicines and expansion into new treatment markets. The company's dividend track record is one of its biggest selling points to income investors.

In October 2026, the company declared a fourth-quarter dividend of $0.43 per share, which implies a forward dividend yield of around 6.1%. It also marks the company's 352nd consecutive quarterly dividend, or 88 straight years of payouts. Management is also committed to maintaining the payout and growing it over the long term.

Meanwhile, Pfizer is building the next phase of its growth through oncology, specialty medicines, and new treatments. The company's cancer portfolio is particularly important, with its investments in innovative therapies creating more room to expand. Pfizer is also seeing progress in breast cancer and bladder cancer treatments, which opens up more commercial opportunities.

The company also continues to advance its research pipeline. Pfizer reported 96 programs across different stages of clinical development, including 31 already in phase 3. That means the pipeline offers multiple potential opportunities for future product launches.

Investors who own Pfizer today get a high dividend yield along with potential growth from its oncology business and research pipeline. Plus, its established track record of medicines and commitment to maintaining and growing the dividend make it a key dividend stock heading into year-end.

Which dividend stock fits which kind of investor?

While both companies offer high yields, they suit different kinds of investors. Both stocks give investors a chance to lock in high yields before the year ends.

For investors who want steadier income, Verizon might be the more reliable option, with recurring revenue from connectivity services behind its payout. Pfizer, on the other hand, could suit investors seeking income plus growth, as it pairs an established portfolio with promising opportunities in oncology and new treatments.

Should you buy stock in Verizon Communications right now?

Before you buy stock in Verizon Communications, consider this:

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Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Pfizer. The Motley Fool recommends Verizon Communications. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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