3 of the Best Dividend Stocks to Buy in 2026
Key Points
The stocks on this list offer investors above-average yields.
They have also been regularly increasing their dividend payments over the years.
While their returns aren't spectacular this year, their low volatility makes them great options for income-seeking investors.
- 10 stocks we like better than Verizon Communications ›
Whether you're worried about the stock market next year and want some stability, or you're just looking for a way to generate some extra cash, buying dividend stocks in 2026 can be a great idea. Finding dividend stocks isn't hard, but finding quality ones that offer a combination of a high yield, safety, and dividend growth can be a bit more challenging.
Three stocks that check off all those boxes and that I think may be among the best dividend investments to hold on to in 2026 are Verizon Communications (NYSE: VZ), Realty Income (NYSE: O), and ExxonMobil (NYSE: XOM). Here's a closer look at what makes these stocks terrific options for income investors to buy and hold.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Image source: Getty Images.
Verizon Communications
Telecom giant Verizon offers investors a mouthwatering yield of 6.8%. That's more than 6 times higher than the S&P 500 average of 1.1%. In September, the company also announced it would be raising its dividend for a 19th consecutive year.
Verizon's stock is up around just 2% this year, which may be disappointing if you're a growth investor, but if your priority is to collect a good dividend, then that's a great sign of stability. Another sign of good stability: Verizon's low beta of 0.32. That means the stock doesn't copy the market's moves, which can make it a good, resilient stock to hang on to and just collect dividends from.
The company recently changed CEOs, with former PayPal chief Dan Schulman now in charge of things, taking over from Hans Vestberg. Verizon has announced it'll be cutting 13,000 jobs in an effort to "address the complexity and friction that slow us down," according to Schulman.
While Verizon is in the midst of a restructuring, the good news is that with a dividend payout ratio of less than 60%, that high-yielding payout doesn't look to be in any danger.
Realty Income
Another high-yielding stock that is likely to appeal to investors is Realty Income. This real estate investment trust (REIT) has a diverse portfolio of tenants that it collects rent from. And with a high occupancy rate of around 99%, the business looks solid.
This year, the stock has risen close to 8%, but it too has a beta value of 0.81, which indicates a bit of a separation from how the markets are doing. The biggest appeal of this dividend stock is its 5.6% yield, which is well above average. Plus, as a bonus, the REIT makes payments every month rather than every quarter, which is the norm for most income stocks.
Realty Income has been a reliable dividend-paying stock for decades, and it also routinely raises its dividend along the way. In December, it announced the 133rd increase to its monthly dividend. While the increases are typically modest (this latest increase was from $0.2695 to $0.27), they add up over time; in five years, Realty Income's dividend has risen by more than 15%.
ExxonMobil
Oil and gas stocks are usually good places to find income-generating investments. And what better option than to go with one of the largest, most iconic companies in the industry: ExxonMobil. It yields 3.5%, which technically ranks lowest on this list, but it's still a solid payout overall.
ExxonMobil has increased its dividend for an impressive 43 consecutive years. The company recently announced an update for its 2030 plan, which calls for more growth in its operations. It boosted expectations for earnings growth by the end of the decade by an additional $5 billion, as it continues to shed costs and improve profitability.
Although commodity prices may fluctuate, having a strong and disciplined business can enable ExxonMobil to continue being a reliable dividend growth stock, as it has been for decades. It's up around 7% this year, and it has averaged a beta of 0.38 over the past five years.
Should you buy stock in Verizon Communications right now?
Before you buy stock in Verizon Communications, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Verizon Communications wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $506,935!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,067,514!*
Now, it’s worth noting Stock Advisor’s total average return is 958% — a market-crushing outperformance compared to 192% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of December 19, 2025.
David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends PayPal and Realty Income. The Motley Fool recommends Verizon Communications and recommends the following options: long January 2027 $42.50 calls on PayPal and short December 2025 $75 calls on PayPal. The Motley Fool has a disclosure policy.
Recommended Articles
