My Top 3 High-Yield Dividend Stocks for May 2026

Earning dividend income is a major part of my investment strategy. My goal is to eventually generate enough passive income to offset my basic living expenses.

I like to invest in high-yielding dividend stocks because they should help me reach my goal sooner. Here are my top three to buy this May.

Image source: Getty Images.

Main Street Capital

Main Street Capital (NYSE: MAIN) is a business development company (BDC) focused on providing capital (debt and equity) to middle market companies (less than $500 million in annual revenue). Those investments generate interest and dividend income. The BDC must distribute 90% of its taxable net income to shareholders via dividends each year.

The lender offers investors two dividend streams. It pays a monthly dividend set at a rate it can sustain during tougher times. Main Street has never reduced or suspended its monthly dividend. Instead, it has increased this payment by 141% since its 2007 IPO (including by 3.9% over the past year). Additionally, the BDC periodically pays supplemental quarterly dividends. It has raised its monthly dividend for 12 straight quarters while paying 19 consecutive supplemental dividends. At the current annualized rates, Main Street Capital's income yield is 7.8% at its recent share price.

Vici Properties

Vici Properties (NYSE: VICI) is a real estate investment trust (REIT) focused on experiential real estate. It invests in market-leading gaming, hospitality, wellness, entertainment, and leisure destinations. It leases its owned properties under very long-term, triple-net leases that escalate at rates tied to inflation. Additionally, the REIT invests in real estate-backed loans that generate interest income and often come with the option to purchase the underlying property in the future.

The REIT's dividend currently yields 6.2%. Vici Properties has grown its payout at a 7% compound annual rate since the end of 2018, well above the 2.4% average growth rate of other REITs focused on investing in triple-net real estate. Vici Properties recently closed a $1.2 billion investment in seven gaming properties and expanded a real estate-backed loan investment by $1 billion. These and other investments support the REIT's continued dividend growth.

Verizon

Verizon (NYSE: VZ) is a leading mobile and broadband provider. It generates recurring revenue as customers pay their cellphone and internet bills. The company generates robust cash flow, supporting its 6%-yielding dividend.

Verizon has raised its dividend for 19 consecutive years. The telecom company should be able to continue growing its payout. It expects to generate $21.5 billion of free cash flow this year after funding up to $16.5 billion in capital expenditures. That's 7% more than last year and its highest total since 2020. Verizon should continue growing its free cash flow as it executes its expansion strategy and cost-saving initiatives, supporting continued dividend increases.

Top-notch income stocks

Main Street Capital, Vici Properties, and Verizon don't just pay high-yielding dividends. These companies routinely increase their payouts. That combination of a high current income stream and steady growth is why they're my top high-yielding dividend stocks to buy this month.

Matt DiLallo has positions in Main Street Capital, Verizon Communications, and Vici Properties. The Motley Fool recommends Verizon Communications and Vici Properties. The Motley Fool has a disclosure policy.