While reaching retirement age can be both a blessing and a curse, relying on the U.S. government to provide for your needs is not the best idea. The full retirement age is 66 if you were born from 1943 to 1954 and increases gradually to 67 for those born in 1960 or later. One thing is sure: with the latest May 2026 Social Security cost-of-living adjustment (COLA) projections skyrocketing toward 4.2% due to persistent inflation in essentials like coffee and groceries, Boomers and others will need to generate significant passive income to maintain their purchasing power.
One huge winning hand for passive income is investing in the Dividend Champions. These 137 companies have raised their dividends for 25 years or longer, regardless of market cap. Unlike the Dividend Aristocrats, they don’t have to be in the S&P 500, offering a wider variety of sectors and growth profiles while maintaining the security of annual payout increases.
We screened the current list for the highest-yielding companies. We identified seven stocks that are Buy-rated by top Wall Street firms, offer solid upside to price targets, and represent safer options for growth and income in a 2026 market that remains fully valued.
Altria (MO)
Altria remains a powerhouse for income. As of May 2026, it offers a robust yield of approximately 6.2%, significantly higher than the broader market. While the company continues to pivot toward smoke-free products like NJOY and oral nicotine pouches, its core tobacco business provides the cash flow necessary for its legendary dividend growth. Stifel maintains a Buy rating with a $63 target price.
Enterprise Products Partners (EPD)
This midstream giant provides essential infrastructure for natural gas and crude oil. With a distribution coverage ratio well above 1x, EPD is a premier choice for Boomers seeking energy exposure without extreme volatility. Its current yield sits near 5.9%, supported by 26 years of consecutive increases. JPMorgan maintains an Overweight rating with a $38 target.
Franklin Resources (BEN)
As a global asset manager, Franklin Resources has navigated various market cycles for over 40 years. Following the market shifts of early 2026, the stock appears undervalued with a yield of 5.3%. TD Cowen maintains a Buy rating, noting the company’s strong global footprint as a key differentiator. Target price remains $27.
Pfizer (PFE) — New Recommendation
Pfizer has rejoined the spotlight as a top-tier income play for 2026. Trading at a notable discount to its fair value, the pharmaceutical giant currently yields a massive 6.6%. Its commitment to dividend growth makes it a compelling “4-star” value pick for retirees looking to diversify out of traditional utilities or tobacco.
Sysco (SYY) — New Recommendation
With 56 years of dividend increases, Sysco is the definition of stability. Currently yielding 3.0%, it serves as a safer “Dividend King” alternative to more volatile sectors. As food service demand remains steady in 2026, Sysco offers a defensive posture for any Boomer portfolio.
Polaris (PII)
Polaris continues to dominate the powersports vehicle market. While its 3-year growth has moderated, it maintains a stable 4.0% yield. D.A. Davidson keeps a Buy rating with a $60 target, citing the company’s consistent capital return to shareholders through both dividends and buybacks.
Realty Income (O)
Known as “The Monthly Dividend Company,” Realty Income remains a cornerstone for passive income. With over 15,600 properties across the US and Europe, it provides a yield of 5.1% in the current 2026 interest rate environment. It remains an ideal contrarian investment for those seeking monthly cash flow.
Editor’s Note: This article was updated on May 13, 2026, to reflect the significant rise in Social Security COLA projections from 2.5% to 4.2% based on recent inflation data. We have refreshed all dividend yields and analyst price targets to reflect current market valuations and introduced Pfizer and Sysco as new high-yield candidates to provide a more diversified outlook for the 2026 fiscal year.
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