Dividend Stocks Are the Gift that Will Keep On Giving You More Income in 2026

Most gifts you buy this holiday season will cost you money. Some might end up costing you more than just the initial purchase price due to unexpected repairs or hidden fees.

However, investing in dividend-paying stocks is one gift that you can buy for yourself this holiday season that will keep on giving to you in 2026. Here are some top dividend investments to consider buying to bring you more income in the coming year.

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Realty Income

Realty Income's (NYSE: O) stated mission is to deliver dependable monthly dividend income to its investors that rises over time. The real estate investment trust (REIT) has certainly been successful in that endeavor over the decades. It has increased its dividend 133 times since its public market listing in 1994, including for the past 113 quarters in a row.

The REIT's monthly dividend currently yields 5.7%, which is several times higher than the average dividend stock (the S&P 500 yields around 1.2% these days). At that rate, every $1,000 invested in Realty Income's stock would generate about $4.75 of dividend income each month ($57 annualized). That payment should rise over the course of the year as Realty Income increases its payout.

Realty Income's diversified real estate portfolio (retail, industrial, gaming, and other properties) produces very stable rental income backed by long-term net leases with some of the world's leading companies. It pays out about three-quarters of its stable cash flow in dividends, retaining the rest to invest in additional income-producing properties. It also has one of the 10 best balance sheets in the REIT sector to support its growing dividend.

Brookfield Infrastructure

Brookfield Infrastructure (NYSE: BIPC)(NYSE: BIP) is a leading global infrastructure company. It owns utility, energy midstream, transportation, and data infrastructure assets. These businesses generate very stable and steadily rising cash flow backed by long-term contracts and government-regulated rate structures, most of which have built-in rate escalation clauses tied to inflation.

The infrastructure company has increased its dividend payment every year since its formation in 2008, growing it at a 9% compound annual rate. Brookfield's payout currently yields 3.8%. The company aims to increase its dividend at a 5% to 9% annual rate in the future.

Brookfield Infrastructure has multiple growth drivers beyond inflation-linked rate increases. The company currently has $7.8 billion of organic expansion projects that it expects to complete over the next two to three years, including multiple data center development projects and two U.S. semiconductor fabrication facilities. Additionally, Brookfield has secured $1.5 billion of new investments so far this year, including in a leading U.S. refined petroleum products pipeline system, a North American rail network, and a bulk fiber network. The company expects to grow its funds from operations (FFO) per share at a more than 10% annual rate in the future, easily supporting its growing dividend.

The Schwab U.S. Dividend Equity ETF

An alternative to investing in individual dividend stocks is purchasing shares of an exchange-traded fund (ETF) that focuses on investing in dividend-paying companies. The Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) is one of the best dividend ETFs. The fund holds 100 top higher-yielding dividend stocks selected based on several dividend quality characteristics, including dividend yield and five-year payment growth rate.

The ETF currently has a dividend yield of 3.7% based on its payment over the past 12 months. While the payment can fluctuate from quarter to quarter based on the timing of dividend payments received by the fund, it has generally headed higher each year. The fund's current holdings have increased their dividends by an average of more than 8% annually over the past five years.

The Schwab U.S. Dividend Equity ETF's top holdings all have exceptional records of increasing their dividends. For example, the current top holding, Bristol Myers Squibb, recently increased its dividend payment by 1.6%, extending its growth streak to 17 years in a row. The high-yielding pharmaceutical giant (4.6% current yield) has paid dividends for 94 straight years. Investing in the Schwab U.S. Dividend Equity ETF enables you to easily collect dividend income from a diversified portfolio of high-quality, high-yielding stocks.

Buy yourself the gift that will keep on giving

High-quality dividend stocks make excellent investments. They pay out a recurring stream of dividend income that rises over time. Realty Income, Brookfield Infrastructure, and the Schwab U.S. Dividend Equity ETF are three great ways to give yourself the gift of a growing income stream in 2026.

Matt DiLallo has positions in Bristol Myers Squibb, Brookfield Infrastructure, Brookfield Infrastructure Partners, Realty Income, and Schwab U.S. Dividend Equity ETF. The Motley Fool has positions in and recommends Bristol Myers Squibb and Realty Income. The Motley Fool recommends Brookfield Infrastructure Partners. The Motley Fool has a disclosure policy.