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Top 10 Dividend Stocks for 2026: Yields of 4% or More

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  Published in Stocks and Investing on Wednesday, December 17th 2025 at 17:29 GMT by MarketWatch
      Locale: New York, UNITED STATES

The 10 Most Loved Dividend Stocks for 2026 – Yields of 4 % or More

MarketWatch’s latest round‑up of high‑yield stocks outlines a group of 10 companies that investors are eyeing for the 2026 tax year. Each ticker carries a dividend yield of at least 4 %, a figure that stands out in a market where interest rates and corporate debt have left many investors scrambling for steady income streams. The article takes a quick‑look at why these companies are “loved” by dividend hunters, what their payout dynamics look like, and the risks that could erode future payouts.

1. AT&T (T) – 8.4 % Yield

AT&T is the classic “high‑yield, high‑risk” pick. Its 8.4 % yield comes from a $5.80 dividend per share that is projected to be boosted by the company’s ongoing plan to divest its media assets. MarketWatch points out that AT&T’s payout ratio sits at roughly 100 %, meaning all earnings go straight to shareholders. While this leaves little room for growth or a buffer against earnings dips, the company’s dominant position in telecom infrastructure and a large subscriber base make its dividend a compelling safety net for yield‑focused investors.

2. Verizon Communications (VZ) – 5.8 % Yield

Verizon is the nearest “middle‑ground” to AT&T. Its 5.8 % yield is backed by a solid, predictable cash flow from a wide array of services, including 5G deployment and an expanding fiber‑optic network. The company maintains a payout ratio near 70 %, which gives it a little breathing room compared to AT&T, but the article warns that any sudden regulatory changes in the telecom sector could dent the dividend.

3. Exxon Mobil (XOM) – 6.3 % Yield

The energy giant offers a 6.3 % yield, and its dividend growth has been fairly consistent for two decades. The article links to Exxon’s earnings releases and points out that the company’s payout ratio is roughly 55 %. Exxon’s future dividend is tied to crude oil prices, which can be volatile, but its diversified portfolio (refining, petrochemicals, LNG) keeps the risk spread. The article also notes a 2026 forecast that assumes a modest rise in demand for petrochemical products, which could support dividend growth.

4. Chevron (CVX) – 5.5 % Yield

Chevron’s yield sits slightly below Exxon’s but is backed by a payout ratio of around 60 %. The article highlights Chevron’s strategic acquisitions in renewable energy and its long‑term contracts with global buyers. It also cites the company’s recent dividend increases over the past 12 quarters. The key risk mentioned is the ongoing transition away from fossil fuels, which could limit growth if oil prices stay low.

5. Altria Group (MO) – 9.1 % Yield

Altria’s 9.1 % yield is a top‑tier number that attracts income seekers. Its dividend is supported by a relatively low payout ratio of 78 %. The article notes that the company’s heavy reliance on the U.S. tobacco market makes it sensitive to changes in regulations, taxation, and consumer preferences. Altria’s future dividend is seen as stable for the next few years, but long‑term prospects could be under pressure from the “cigarette tax” trends.

6. Philip Morris International (PM) – 9.0 % Yield

Philip Morris, the non‑U.S. counterpart to Altria, also carries a 9.0 % yield and a payout ratio of 82 %. The article highlights the company’s shift toward “clean‑cigarettes” and a focus on international growth. Risk factors include increasing regulatory scrutiny in key markets like China and India, which could limit sales and, in turn, dividends.

7. Southern Company (SO) – 4.9 % Yield

Southern Company, a regulated utility, has a 4.9 % yield with a payout ratio near 85 %. MarketWatch ties the company’s dividend to its reliable cash flow from power generation and distribution. The article warns that the utility’s dividend could be constrained by a potential rate‑capping initiative from state regulators in the coming years.

8. Duke Energy (DUK) – 4.7 % Yield

Another regulated utility, Duke Energy’s yield sits at 4.7 %. Its payout ratio is a solid 80 %. The article highlights Duke’s robust renewable portfolio and its plans to upgrade its infrastructure for grid reliability. However, it points out that a sudden spike in interest rates could impact the company’s ability to refinance its debt, which may ultimately affect dividends.

9. NextEra Energy (NEE) – 4.3 % Yield

NextEra Energy is a unique pick because it mixes a 4.3 % yield with a forward‑looking renewable energy strategy. Its payout ratio is around 70 %. The article links to NextEra’s latest earnings report, which shows a steady rise in renewable energy capacity. The biggest risk is a potential slowdown in wind and solar installations due to policy changes, which could reduce future cash flow.

10. Enterprise Products Partners (EPD) – 4.5 % Yield

Finally, the article turns to a master‑class in energy infrastructure. Enterprise Products Partners, a midstream operator, offers a 4.5 % yield and a payout ratio near 65 %. Its dividend is supported by long‑term contracts for oil and gas transport, which give the company a predictable cash flow base. The article stresses that commodity price fluctuations are a risk factor, but the company’s diversified customer base can help cushion the blow.

Why These Stocks Matter

Across the list, a few patterns emerge:

1. Regulated and High‑Cash‑Flow Sectors – Utilities and master‑class energy infrastructure companies dominate because they provide a predictable cash base that can sustain higher payouts.

2. Dividend Sustainability – Most picks have payout ratios below 90 %, giving them a small buffer in case earnings dip. Only AT&T and Verizon’s ratios sit near 100 %, meaning there is little room for earnings growth.

3. Sector Risks – Regulatory changes in telecom, tobacco, or utilities can be a wildcard. Likewise, commodity price swings can erode cash flow for energy giants.

4. Growth vs. Income – The article notes that these companies are chosen for income, not growth. Investors should therefore adjust expectations for capital appreciation.

Final Takeaway

MarketWatch’s roundup is a useful starting point for investors looking for a “dividend ladder” that delivers at least a 4 % yield in 2026. The list blends classic high‑yield players (AT&T, Verizon) with more stable utilities and energy infrastructure firms that provide a steadier, if less spectacular, income stream. As always, the real test for these stocks will be how they navigate regulatory, commodity, and economic headwinds in the next few years. For yield‑focused investors who are willing to accept the inherent risks, the list offers a solid foundation for building a diversified income portfolio.