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Ares Capital has paid a stable or growing dividend over the last 16 years.
Energy Transfer plans to increase its distribution by 3% to 5% annually.
Vici Properties has grown its payout much faster than its peers over the years.
Dividend yields have been steadily declining over the years as many companies have de-emphasized paying dividends. The dividend yield on the S&P 500 is currently near its record low at around 1.1%. That's well below its historical average of more than 4%.
However, several companies prioritize paying dividends, enabling them to offer much higher dividend yields these days. Here are five stocks yielding more than 5% to buy for income in 2026.
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 »
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Ares Capital (NASDAQ: ARCC) pays a monster 9.6% dividend yield. The business development company (BDC) makes debt and equity investments in private middle market companies (those with $100 million to $1 billion in annual revenue). The company primarily makes lower-risk secured loans across a highly diverse portfolio of companies.
The BDC's investment strategy has enabled it to deliver 16 years of paying a stable to growing dividend. The company routinely makes new investments to replace the income from exited investments while also expanding its portfolio. During the third quarter, it committed to invest $3.9 billion across 35 new and 45 existing portfolio companies, more than offsetting the $2.6 billion of investments it exited. Ares Capital has a strong financial profile, enabling it to continue investing in support of its high-yielding dividend payment.
Brookfield Renewable Partners (NYSE: BEP) currently yields 5.5%. That's a much higher yield than its economically equivalent corporate twin, Brookfield Renewable Corporation, which yields 3.8%. While the limited partnership sends investors a Schedule K-1 federal tax form each year, which can complicate tax filing, the higher yield is worth the extra work.
The renewable energy company sells the electricity it generates to utilities and large corporations under long-term, fixed-rate power purchase agreements, which provide it with steadily rising cash flow. Brookfield uses that money to pay its dividend and invest in expanding its portfolio. It currently has a massive backlog of renewable energy development projects. Brookfield also routinely makes acquisitions to expand its portfolio. These investments support the company's plans to increase its dividend payment by 5% to 9% annually.
Energy Transfer (NYSE: ET) has an 8.2% yielding distribution. The master limited partnership (MLP), which also sends a Schedule K-1 to investors, operates a diversified platform of energy midstream assets, including pipelines, processing plants, and export terminals. These assets generate stable cash flow backed by long-term contracts and government-regulated rate structures.
The MLP currently distributes a little more than half its stable cash flow to investors, retaining the rest to fund expansion projects. Energy Transfer expects to invest $5.2 billion in growth projects in 2026, up from $4.6 billion in 2025. It currently has expansion projects underway that should enter commercial service through the end of the decade, led by the $5.6 billion Desert Southwest pipeline expansion. These projects support the MLP's plans to increase its high-yielding payout by 3% to 5% each year.
Starwood Capital (NYSE: STWD) currently yields 10.4%. The real estate investment trust (REIT) has an increasingly diversified portfolio. It started by investing in floating-rate commercial mortgages. Over the years, it has expanded and diversified its portfolio to include residential and infrastructure lending, as well as direct investments in high-quality real estate assets. These investments generate interest and rental income to support Starwood's secure dividend payment, which it has maintained for more than a decade.
The REIT recently took another step to further diversify its portfolio and increase the sustainability of its dividend by acquiring Fundamental Income Properties for $2.2 billion. The portfolio generates durable and steadily growing income (a 2.2% average annual rent increase) backed by long-term net leases (with a 17-year average remaining term). It also provides Starwood with a platform it can expand by acquiring additional properties that produce stable income backed by long-term net leases.
Vici Properties (NYSE: VICI) yields 6.5%. The REIT invests in market-leading gaming, hospitality, wellness, entertainment, and leisure destinations. It primarily owns high-quality properties secured by long-term net leases that increasingly escalate rents at rates tied to inflation. The REIT will also invest in real estate-backed loans, often providing capital to experiential property developers. Those loans generate interest income and frequently come with the option to acquire the underlying real estate in the future.
The REIT has grown its dividend at a 6.6% compound annual rate since its formation in 2018. That's nearly three times faster than the average net lease REIT, which has delivered 2.3% compound annual dividend growth during that time frame. Vici Properties is in a strong position to continue increasing its dividend. It recently announced a $1.2 billion sale-leaseback transaction covering seven gaming assets across Nevada that it expects to close next year. It has ample financial flexibility to continue growing its portfolio in the future to support its rising dividend.
While many other companies have deemphasized dividend payments, Brookfield Renewable, Energy Transfer, Ares Capital, Starwood Capital, and Vici Properties prioritize their shareholder payouts. As a result, they currently offer high-yielding dividends backed by sustainable financial profiles. That makes them great dividend stocks to buy in 2026 to boost your income.
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Matt DiLallo has positions in Ares Capital, Brookfield Renewable, Brookfield Renewable Partners, Energy Transfer, Starwood Property Trust, and Vici Properties. The Motley Fool has positions in and recommends Ares Capital and Starwood Property Trust. The Motley Fool recommends Brookfield Renewable, Brookfield Renewable Partners, and Vici Properties. The Motley Fool has a disclosure policy.
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