Despite the Federal Reserve’s median forecast of one rate cut in 2026, a growing number of economists and analysts believe no cuts may materialize this year. The Federal Reserve has now held rates steady at 3.5% to 3.75% for two consecutive meetings, as inflation continues to run above the central bank’s 2% target and the labor market shows signs of softening. Fed officials have raised their inflation outlook for 2026, now projecting the personal consumption expenditures price index at 2.7%, which is still well above the 2% target, and seven of 19 FOMC participants signaled they expect rates to stay unchanged for the entire year. Should inflation continue to grind higher, that number is sure to climb.
Growth and income investors looking for safe passive income and hoping to grab some total return along the way should focus on quality stocks that pay 5%+ dividends now. Expectations for rate cuts have been in place for months, and many on Wall Street felt two were a given for 2026, and some believed there was a possibility of three. With those seemingly dashed, high-quality stocks that yield 5% or more will be in demand, more and more investors are concluding that the no-rate-cut scenario is becoming increasingly clear.
We screened our 24/7 Wall St. quality high-yield dividend research database for stocks that can withstand market volatility, pay 5% or higher dividends, and offer solid upside potential, especially when this sell-off is finished. It’s important to remember that we had a brief bear market last year, when some of the major indices were down 20%, and that we rebounded smartly. When this current selling is over, the major indices should rebound fast, but with that in mind, investors should scale buy into stocks now, buying a partial position in anticipation of more selling.
All five of our top ideas are Buy-rated at many of the top Wall Street firms we cover.
Why do we cover high-yield dividend stocks?
Since 1926, dividends have accounted for approximately 32% of the S&P 500’s total return, while capital appreciation has accounted for 68%. Therefore, sustainable dividend income and the potential for capital appreciation are essential to total return expectations. A study by Hartford Funds, in collaboration with Ned Davis Research, found that dividend stocks delivered an annualized return of 9.18% over the 50 years from 1973 to 2023. Over the same timeline, this was more than double the annualized return for non-payers (3.95%).
Enterprise Products Partners
Enterprise Products Partners (NYSE: EPD) is an American midstream natural gas and crude oil pipeline company headquartered in Houston, Texas. This company is one of the most extensive publicly traded energy partnerships, paying a very reliable 5.87% dividend. The company’s debt-to-EBITDA ratio ranges from 3.1x to 3.4x, which is moderate for a midstream energy company, and its interest coverage ratio is 5x. Enterprise Products Partners generates strong free cash flow, with an operating cash flow of approximately $8.8 billion, resulting in around $4.2 billion in free cash flow annually, after deducting capital expenditures. Another significant benefit for shareholders is that most of the corporate debt is fixed-rate, thereby limiting the risk of rising interest rates.
Enterprise Products Partners provides various midstream energy services, including:
- Gathering
- Processing
- Transporting and storing natural gas, natural gas liquids (NGLs), and fractionation
- Import and export terminalling
- Offshore production platform services
The company has four reportable business segments:
- Natural Gas Pipelines and Services
- NGL Pipelines and Services
- Petrochemical Services
- Crude Oil Pipelines and Services
One reason many analysts like the stock might be its distribution coverage ratio. The company’s coverage ratio is well above 1x, making it relatively less risky in the MLP sector.
Stifel has a Buy rating with a $41 target price.
Ford
Founded in 1903 by Henry Ford and 11 associate investors, this legacy carmaker now pays shareholders a rich 5.09 dividend. Ford Motor Company (NYSE: F) develops, delivers, and services a range of Ford trucks, commercial cars and vans, sport utility vehicles, and Lincoln luxury vehicles worldwide.
It operates through five segments:
- Ford Blue
- Ford Model e
- Ford Pro
- Ford Next
- Ford Credit
The company sells Ford and Lincoln vehicles, service parts, and accessories through distributors, dealers, and dealerships to commercial fleet customers, daily rental car companies, and governments. It also engages in vehicle-related financing and leasing activities through automotive dealers. In addition, the company provides retail installment sale contracts for new and used vehicles, and it directly finances leases for new cars to retail and commercial customers, including leasing companies, government entities, daily rental companies, and fleet customers.
Furthermore, it offers wholesale loans to dealers to finance the purchase of vehicle inventory, as well as loans to fund working capital, enhance dealership facilities, purchase dealership real estate, and support other dealer vehicle programs.
Bank of America recently initiated coverage with a Buy rating and a $17 target price.
Prudential
Prudential Financial (NYSE: PRU) offers a range of insurance, investment management, and other financial products and services. With a rich 5.81% dividend yield, this insurance and investment giant is a safe option for conservative investors. Prudential provides insurance, investment management, and other financial products and services in the United States and internationally. The company has evolved into a major life insurer in the U.S. and Japan, and its conservative business approach has enabled it to maintain a strong balance sheet and exceed regulatory capital requirements.
It operates through five segments:
- PGIM
- Retirement Strategies
- Group Insurance
- Individual Life
- International Business
The PGIM segment offers investment management services and solutions related to public fixed income, public equity, real estate debt and equity, private credit, and other alternatives, as well as multi-asset class strategies, to institutional and retail clients and its general account.
The Retirement Strategies segment provides a range of retirement investment and income products and services to retirement plan sponsors in the public, private, and not-for-profit sectors. It develops and distributes individual variable and fixed annuity products.
The Group Insurance segment offers:
- Various group life plans
- Long-term and short-term group disability
- Group corporate, bank, and trust-owned life insurance in the United States, primarily for institutional clients, for use in connection with employee and membership benefits plans
- Accidental death and dismemberment, and other supplemental health solutions
- Plan administration services in connection with its insurance coverages
The Individual Life segment develops and distributes variable life, universal life, and term life insurance products.
The International Businesses segment develops and distributes life insurance, retirement products, investment products, specific accident and health products, and advisory services. The company provides its products and services to individual and institutional customers through its proprietary and third-party distribution networks.
Jefferies has a Buy rating with a $154 price target.
VICI Properties
Vici Properties (NYSE: VICI) is a real estate investment trust based in New York City that specializes in casino and entertainment properties, paying a stellar dividend yield of 6.38%. This is one of the top picks across Wall Street in the net lease group and is ideal for more conservative investors seeking gaming exposure and a substantial dividend. VICI Properties is an S&P 500 member with one of the largest portfolios of market-leading gaming, hospitality, and entertainment destinations, including three iconic entertainment facilities on the Las Vegas Strip:
- Caesars Palace Las Vegas
- MGM Grand
- The Venetian Resort Las Vegas
VICI Properties owns 93 experiential assets across a geographically diverse portfolio of 54 gaming properties and 39 other experiential properties across the United States and Canada. The portfolio comprises approximately 127 million square feet and features approximately 60,300 hotel rooms, as well as over 500 restaurants, bars, nightclubs, and sportsbooks.
Its properties are occupied by industry-leading gaming, leisure, and hospitality operators under long-term, triple-net lease agreements. The company’s dividend is underpinned by dependable cash flows generated from premier gaming, hospitality, and entertainment properties—all held under long-term triple-net leases. What makes its income stream particularly compelling is that a growing share of those leases include rent escalators tied to inflation, rising from 46% in 2026 to 90% by 2030, effectively baking future income growth right into the portfolio.
VICI Properties has a growing array of real estate and financing partnerships with leading operators in other experiential sectors, including:
- Bowlero
- Cabot
- Canyon Ranch
- Chelsea Piers
- Great Wolf Resorts
- Homefield
- Kalahari Resorts
VICI Properties also owns four championship golf courses and 33 acres of undeveloped and underdeveloped land adjacent to the Las Vegas Strip.
Baird has an Outperform rating with a $34 target price.
Verizon
Verizon Communications (NYSE: VZ) is an American multinational telecommunications company that continues to offer tremendous value. It trades 9.13 times its estimated 2026 earnings and pays a 5.41% dividend. Verizon provides a range of communications, technology, information, and entertainment products and services to consumers, businesses, and government entities worldwide.
Verizon’s trailing 12-month interest coverage ratio is 4.6× to 5×, providing ample cushion for dividend payments. With a very predictable revenue stream from telecom services, the company has less exposure to commodity cycles. In addition, the large scale helps in financing and absorbing shocks. It operates in two segments.
The Consumer segment provides wireless services across the United States through Verizon and TracFone networks, as well as through wholesale and other arrangements. It also provides fixed wireless access (FWA) broadband through its wireless networks and related equipment and devices, such as:
- Smartphones
- Tablets
- Smartwatches and other wireless-enabled connected devices
The segment also offers wireline services in the Mid-Atlantic and northeastern United States through its fiber-optic network, Verizon Fios product portfolio, and copper-based network.
The Business segment provides wireless and wireline communications services and products, including:
- FWA broadband
- Data
- Video and conferencing
- Corporate networking
- Security and managed network
- Local and long-distance voice
Network access services to deliver various IoT services and products to businesses, government customers, and wireless and wireline carriers in the United States and internationally.
Citigroup has given the company a Buy rating and a price target of $55.