Investing $8,000 In Each of These 3 Stocks in 2026 Could Generate $1,500 in Annual Dividends

Source The Motley Fool

Key Points

  • Investing in high-yielding dividend stocks can be risky, but the ones on this list can be gems.

  • These stocks yield between 6.2% and 6.4%.

  • They are in different sectors of the economy and together can help diversify your portfolio.

  • 10 stocks we like better than Verizon Communications ›

Dividend income can be valuable to any type of investor. Whether you use it to pay bills or pad savings, or simply invest back into the stock market, dividends can help you in various ways. Companies that can consistently pay dividends are also among the safest stocks to invest in, as they must have strong financials to do so.

Finding quality high-yielding dividend stocks can be a bit more challenging, simply because stocks with very high yields can often be risky. But there are three stocks that pay more than 6% that can help generate a boatload of recurring dividend income for your portfolio, without adding significant risk: Verizon Communications (NYSE: VZ), United Parcel Service (NYSE: UPS), and Pfizer (NYSE: PFE). Here's how investing $8,000 into each of these stocks could generate $1,500 in annual dividends for your portfolio.

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Verizon Communications

Verizon is an excellent dividend stock to own as the telecom giant generates a lot of recurring income. Its financials are fairly stable, and while its growth rate is often in the low single digits and can be underwhelming for growth investors, it can be ideal for dividend investors.

Currently, Verizon's stock yields 6.2%, which is far above the S&P 500 average of 1.2%. Investing $8,000 in the telecom stock would generate roughly $500 in dividends per year.

This year, Verizon shares have been picking up steam, rallying more than 11% after the company posted strong quarterly results to finish 2025. Last year, its revenue totaled $138.2 billion, up less than 3% from the previous year. While that's not terribly high, it's decent, steady growth that income investors value. Verizon's steady financials make it one of the better dividend stocks you can hold in your portfolio for the long term.

United Parcel Service

You can collect an even higher yield from logistics giant United Parcel Service, better known as just UPS. It pays 6.4%, and investing $8,000 in the stock would produce over $510 in dividends per year.

UPS stock has struggled mightily over the past five years, falling more than 40%, which has pushed its yield to where it is now. Slowing economic conditions and concerns about tariffs have weighed on the outlook for the stock, prompting many investors to look past it.

However, UPS has been slashing jobs, and it's in the midst of reducing the business it does with Amazon in an effort to improve margins and overall profitability. Its revenue declined by 3% to $88.7 billion last year, but the company still generated a strong profit of $5.6 billion.

There are challenges ahead for UPS, but the business is not as risky as it might appear to be at first glance. The ongoing growth in e-commerce, the need for global shipments, and its dominant position in the industry it serves make it an excellent dividend stock to buy and hold.

Pfizer

Rounding out this list of high-yielding stocks is Pfizer. The drugmaker yields 6.3%, in line with the others on this list.

Pfizer's stock has declined more than 25% in the past five years as concerns about its future growth have kept investors away. But through acquisitions and in-house development, Pfizer has amassed a solid pipeline, resulting in over 100 drug candidates.

The company faces some uncertainty ahead, but with plenty of assets to work with, it's not in as dire a situation as many investors fear it may be. Last year, it generated $7.8 billion in profit on revenue totaling $62.6 billion, for a solid profit margin of more than 12%. Revenue declined by less than 2%, but overall, things have been fairly stable for the business of late. And with many drugs in development, there's hope that it might soon have a positive growth catalyst that improves its prospects for the long term.

Investing another $8,000 in the healthcare stock would bring in yet another $500 in dividends. In total, the annual dividend income from all of them combined would be slightly over $1,500, assuming you invested $8,000 in each of them.

Should you buy stock in Verizon Communications right now?

Before you buy stock in Verizon Communications, consider this:

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Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $556,335!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,160,572!*

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*Stock Advisor returns as of April 14, 2026.

David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Pfizer, and United Parcel Service. 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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