High-yielding dividend stocks can be powerful passive income producers. The best ones pay durable dividends that steadily rise. That enables investors to collect a lucrative and growing stream of passive income.
Enterprise Products Partners (EPD +0.98%), Realty Income (O +0.96%), and Main Street Capital (MAIN +3.26%) stand out for their high-quality, high-yielding payouts. These dividend stocks have payouts yielding between 5.8% and 7.6% that they've steadily increased over the years. With more growth ahead, they can help power your passive income production in 2026.
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As dependable as they come
Realty Income pays a monthly dividend that currently yields 5.8%. The real estate investment trust (REIT) has a flawless record of paying dividends. The company has increased its payment at least once a year since its public market listing in 1994 (132 times overall), including raising it for the past 112 consecutive quarters. It has grown the payout at a 4.2% compound annual rate during that period.
The REIT generates very stable cash flow. It owns a well-diversified portfolio of commercial properties (retail, industrial, gaming, and others) secured by long-term net leases. Those leases provide stable and steadily rising rental income backed by annual lease escalation clauses.
NYSE: O
Key Data Points
Realty Income has a very conservative dividend payout ratio and a fortress balance sheet. That gives it the financial flexibility to invest in new income-producing commercial properties. Those investments grow its rental income, allowing the REIT to continue raising its monthly dividend payment.
Entering a new phase
Enterprise Products Partners' distribution currently yields 7.2%. The master limited partnership (MLP), which sends investors a Schedule K-1 Federal Tax Form each year, also has a perfect payment record. It has increased its distribution for 27 straight years, every year since its IPO.
NYSE: EPD
Key Data Points
The energy midstream giant produces very stable cash flow. The bulk of its assets operate under long-term fee-based contracts or government-regulated rate structures. The MLP pays out a conservative percentage of its stable cash flow in distributions, retaining the rest to invest in expansion projects.
Enterprise Products Partners is currently wrapping up a major multi-year expansion phase that began in 2022. Those capital projects are supplying it with significant incremental earnings. Meanwhile, with its capital spending on track to fall next year, it will produce even more free cash flow. That will allow the MLP to return even more cash to investors in 2026.
This unique dividend policy adds up
Main Street Capital is a business development company (BDC) with a rather unique dividend policy. It pays a monthly dividend set at a rate it can sustain during more challenging market conditions. As a result, it has never suspended or reduced this payment. Instead, it has increased its monthly dividend by more than 130% since its IPO in 2007, including by 4% over the past year. Additionally, it periodically pays supplemental quarterly dividends to ensure it meets the IRS requirements for BDCs of paying out at least 90% of its income in dividends. At its current payment rates, Main Street Capital has a 7.6% dividend yield.
NYSE: MAIN
Key Data Points
The BDC provides debt and equity capital to smaller private companies. Its debt investments typically have double-digit interest yields, while most of its equity investments generate dividend income. These income streams help support its dividend payments.
Main Street Capital's equity investments enable it to grow the value of its portfolio. The company can cash in on the appreciating value of these investments to make new debt and equity investments. It also has a strong balance sheet to support its growth. New portfolio investments help support its steadily rising monthly dividend and ability to continue paying meaningful supplemental dividends.
Powerful passive income producers
Enterprise Products Partners, Realty Income, and Main Street Capital provide investors with attractive, durable, and steadily rising streams of passive income. That makes them great dividend stocks to buy right now to generate more passive income in 2026.
