Investing in dividend stocks is a great way to generate passive income. Many companies pay lucrative and steadily rising dividends. That allows investors to collect a growing stream of passive income.
Chevron (CVX +1.01%), NNN REIT (NNN +1.10%), and Verizon (VZ +0.26%) are three top dividend stocks. Here's why they're great ones to buy this December to get a head start on boosting your passive income in 2026.
Image source: Verizon.
A well-oiled, dividend-paying machine
Chevron currently pays a quarterly dividend of $1.71 per share ($6.84 annualized). That gives the oil giant a 4.6% yield at the current stock price, roughly triple the S&P 500's dividend yield (1.2%). Chevron has increased its dividend payment for 38 straight years, the second-longest streak in the oil sector.
The company's high-yielding payout is on a very sustainable foundation. Chevron has one of the lowest upstream breakeven levels in the oil sector. It only needs oil to average around $50 a barrel to fund its dividend and capital spending program. That enables Chevron to produce lots of free cash flow, even at lower oil prices (crude is currently in the low $60s). Additionally, it has one of the industry's strongest balance sheets.
NYSE: CVX
Key Data Points
Chevron's already robust free cash flow is on track to grow significantly over the next five years. The company's recently closed acquisition of Hess, along with organic capital investments to expand its worldwide operations, should fuel a more than 10% compound annual free cash flow growth through 2030. That should supply Chevron with ample fuel to continue increasing its dividend.
As consistent as they come
NNN REIT pays a $0.60 per share quarterly dividend ($2.40 annualized). At that rate, the real estate investment trust (REIT) has a 5.9% yield. The landlord has increased its dividend for 36 straight years, the third-longest streak in the REIT sector.
NYSE: NNN
Key Data Points
The REIT has a straightforward business model. It invests in freestanding retail properties secured by long-term, triple net leases (NNN). NNN leases produce very stable rental income because tenants cover all property operating costs, including routine maintenance, real estate taxes, and building insurance.
NNN REIT pays out a conservative percentage of its stable cash flow in dividends (about 70% of its adjusted FFO). That enables it to retain some cash to fund new income-generating property investments. The REIT also has a very conservative balance sheet, giving it additional financial flexibility to make new investments. A steady stream of new investments enables NNN REIT to continue increasing its dividend.
A cash flow machine
Verizon recently increased its quarterly dividend payment to $0.69 per share ($2.68 annually). That extended its dividend growth streak to 19 years in a row. At its new dividend rate, Verizon's dividend yields 6.8%.
NYSE: VZ
Key Data Points
The telecom giant produces a tremendous amount of recurring cash flow as consumers pay their wireless and internet bills. Through the third quarter, Verizon generated over $7 billion in excess free cash flow after funding the capital expenses to maintain and expand its network and its dividend payments. That enabled the company to strengthen its already rock-solid balance sheet.
Verizon expects to produce even more free cash flow next year. It should benefit from closing its $20 billion acquisition of Frontier Communications, which will expand its fiber network and ability to cross-sell wireless and internet services to more customers. That should allow the company to continue increasing its lucrative dividend.
Big-time passive income boosters
Chevron, NNN REIT, and Verizon have terrific track records of paying dividends. They're in an excellent position to continue increasing their high-yielding payouts in 2026. That makes them great dividend stocks to buy this month to boost your passive income in the coming year.
