Most dividend investors are keenly aware of two things. First, dividend stocks are great vehicles for generating a reliable source of income that can be reinvested in a portfolio or used for regular living expenses. It's always great to hold a stock that rewards investors.
And second, you can have too much of a good thing when it comes to high yield. You don't want to fall for dividend traps, in which the yield is high only because the stock price has tanked in recent months. And you want to make sure that the dividend you're getting is sustainable.
So when looking for high-yield dividend stocks, I prefer those that not only have a high yield but are also growing the overall dividend payout. And in the best cases, companies are also seeing gains in stock prices.
Here are three companies that fit that description and are great buys in 2026.
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Sunoco
Sunoco (SUN +3.10%) is an energy company with extensive operations across 32 countries, including more than 14,000 miles of pipeline and 160 terminals. It also has a network of 11,000 retail gasoline stations.
The company operates as a master limited partnership, which means it's structured so it doesn't pay federal income tax; instead, it passes through income, losses, and deductions to investors. The structure means that Sunoco has the tax benefits of a private partnership, but the liquidity advantages of a stock. And with that comes a strong dividend payout.
Sunoco's forward dividend yield of 5.4% complements the stock's year-to-date gain of 33%. On top of that, Sunoco's dividend has gone up 17% in the last three years.
NYSE: SUN
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Nordic American Tankers
Nordic American Tankers (NAT 1.20%) is an international shipping company that transports crude oil worldwide via its fleet of Suezmax tankers. Its main customers are ExxonMobil, BP, TotalEnergies, and Equinor, which collectively account for more than half of the company's business.
While the company has vessels operating in the Persian Gulf, which connects to the Indian Ocean through the contested Strait of Hormuz, it is projecting a strong first quarter, as rising rates have increased revenue and dividends. Management says its operating costs are $9,000 per day, but time-charter equivalent prices for its fleet range from $41,000 to $175,000.
Shares are up 62% so far this year, and the forward dividend yield is 8%.Nordic American Tankers' dividend is up 30% in the last three years.
DHT Holdings
DHT Holdings (DHT 3.23%) is also a crude oil tanker company. It operates a fleet of Very Large Crude Carriers (VLCCs) that are larger than Suezmaxes and is managed through wholly owned management companies in Monaco, Norway, Singapore, and India.
Earnings for the first quarter showed shipping revenue jumping 57% year over year to $186.3 million. Profits totaled $164.5 million, up from $44.1 million a year ago, and earnings per share jumped from $0.27 to $1.02.
NYSE: DHT
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The company's dividends are directly proportional to its income because DHT Holdings has a policy of paying out 100% of its ordinary net income in dividends. So the dividend for the current quarter was $0.64 per share, up from $0.15 per share in the first quarter of 2025.
DHT Holdings stock is up 48% so far this year, and its forward dividend yield is a whopping 13.6%, up 17% over the last three years.
