Quick Read
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Realty Income (O) has raised its dividend for 29 consecutive years and currently offers a 5.69% yield.
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PepsiCo (PEP) has increased its dividend for 52 straight years with a current yield just below 4%.
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Verizon (VZ) offers a 6.89% dividend yield and has 146.1 million wireless retail connections.
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Some investors get rich while others struggle because they never learned there are two completely different strategies to building wealth. Don’t make the same mistake, learn about both here.
If you have spent the better part of 2025 enjoying having your cash just earning interest or stuck in low-yield funds that felt very safe, it might be time to rethink your income strategy. As yields on savings and cash-friendly accounts are slipping, the stock market’s next growth phase may focus on companies that are paying you to hold their stocks.
In many ways, this is the key with dividend stocks, as you can create a strong passive income return if you invest properly in the right dividend-growth names. Building a portfolio full of dividend stocks helps you not just generate income, but all of the stocks on this list today are also growth opportunities, which means double the benefits.
Why Dividend Investing Is Gaining Momentum
Whether it’s due to an influx of retail investors, Redditors, or just a changing philosophy on how to earn enough to retire, dividend investing is gaining plenty of momentum these days.
After experiencing two years of high interest rates, the easy money that was made in money market funds is fading fast. The benefit of a dividend has never been clearer, in that it gives you a hedge against inflation and an income stream that can compound over time. The real big advantage for dividend investors is that dividend yields can grow, which is why investors are moving from cash to companies that have consistently rewarded shareholders.
These five stocks are a smart way to look at doubling your passive income through dividend investments in 2026.
Realty Income
A dividend investor’s favorite, Realty Income (NYSE: O), has quickly become one of the gold standards of dividend payers. Having raised its dividend for 29 consecutive years, this REIT currently offers a 5.69% yield and an annual dividend of $3.23 for every share owned.
The company owns a massive number of properties in the United States, including commercial assets like office buildings, industrial facilities, and retail spaces. This includes current or previous tenants like Walgreens, FedEx, and even 7-Eleven, all while paying investors every month. The reliability of Realty Income has made it an ideal portfolio staple for both retirees and income-focused investors alike.
PepsiCo
Another investor staple, PepsiCo (NASDAQ:PEP) is far more than just a soda brand, it’s also a global snacks brand. Anyone who loves Doritos, Quaker, Gatorade, and Lay’s has the PepsiCo brand to thank for these beloved favorites.
Best of all, PepsiCo has been a steady, recession-resistant name in the market that has increased its dividend for the last 52 straight years. The current yield sits just below 4% and pays an annual dividend of $5.69, which is hard to ignore. Add in the possibility of an annual raise in the 6-8% range, and PepsiCo leaves room for both future growth and income potential.
Verizon Communications
Yet another staple in the dividend world, Verizon Communications (NYSE:VZ) needs no introduction as one of the nation’s most recognizable brands. With a 6.89% dividend yield, Verizon pays out more than the S&P 500 average, and with more than 146.1 million wireless retail connections, Verizon certainly isn’t going anywhere.
Between its free cash flow and refocusing on growth into 2026, the telecom giant will easily cover its dividend obligations. Even if its growth slows, a focus on 5G infrastructure and enterprise connections will keep Verizon competitive and profitable.
Enterprise Products Partners
Enterprise Products Partners (NYSE:EPD) isn’t a household name like Verizon or Pepsi, but what it lacks in recognition, it more than makes up for it with a 6.94% dividend yield. This results in an annual dividend of $2.18, which means you have yet another source of dependable income in your portfolio.
The company currently has around 50,000 miles of pipeline in its portfolio that are used to transport natural gas liquids, petrochemicals, and other refined products. EPD has also increased its dividend for the last 25 years, with a coverage ratio above 1.7x, which means its earnings are twice what it pays out, giving investors confidence about the future.
NNN REIT
Having two REIT stocks in your portfolio might seem like a lot, but adding NNN REIT (NYSE:NNN) alongside Realty Income gives you not one, but two recession-resistant holdings that can pad your dividend income every year.
For its part, NNN REIT (formerly National Retail Properties) has raised its dividend for the last 34 straight years, even against the backlash of the mortgage and housing crisis in 2008 and 2009. The company’s focus on single-tenant, net-lease properties helps it keep expenses low and cash flow high. With its current 5.85% yield and an annual dividend of $2.40, you’re adding even more long-term growth potential and dividend growth to help double your passive income in 2026.
Doubling Your Income in 2026
Let’s assume for a moment that you are on board with these stocks, which hold an average yield of around 5.8%, nearly triple the S&P average payout. If you invested $200,000 evenly across them, you’d earn approximately $11,600 per year, or $967 per month, before reinvestment and dividend growth. Assuming you’re starting at zero or $1,000 in annual dividends, this is a massive leap in monthly income, and if you reinvest as you go, this number can be far higher in the next five to 10 years.