More Rate Cuts Are Coming in 2026: Grab These Safe 7% and 8% Dividend Stocks Now

24/7 Wall St. Key Points

  • The inflation data for October and November will be reported on Thursday this week.

  • The data, delayed by the government shutdown, could provide a boost to sagging stocks if it comes in at or below expectations.

  • Buying high-yield dividend stocks now could be a massive win for growth and income investors in 2026.

  • Are you ahead, or behind on retirement? SmartAsset’s free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don’t waste another minute; learn more here.(Sponsor)
By Lee Jackson Published
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More Rate Cuts Are Coming in 2026: Grab These Safe 7% and 8% Dividend Stocks Now

© 24/7 Wall St.

The September inflation reading of 3% represents moderate price growth, which is above the Federal Reserve’s long-term target of 2% but well below the elevated rates seen in 2022 and early 2023. At this level, inflation indicates that the general price level of goods and services has increased by 3% compared to the same period a year earlier, affecting consumers’ purchasing power and potentially influencing central bank policy decisions. The 3% number for September came in below expectations at 3.1%. The data for October and November 2025 will be reported this week on December 18, covering the 12 months ending November 2025. If the inflation remains contained, many on Wall Street think this also opens the door to more rate cuts in 2026, especially if President Trump names a new Federal Reserve chairperson who is likely to be far more dovish than current chair, Jay Powell.

We decided to screen our 24/7 Wall St. high-yield dividend stock database, looking for companies that yield 7% or more but are always forgotten by growth and income investors. Five stocks hit our screen, and once our readers realize they also have forgotten about them, it might be time to take a closer look. Three of the stocks are quality energy MLPs, all of which should continue to shine regardless of current oil prices. All are Buy-rated at top Wall Street banks.

Why do we cover high-yield dividend stocks?

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High-yield dividend stocks offer investors a reliable source of passive income. Passive income is characterized by its ability to generate revenue without requiring the earner’s continuous active effort, making it a desirable financial strategy for those seeking to diversify their income streams or achieve financial independence.

Altria

This is one of the world’s largest producers and marketers of cigarettes and other tobacco-related products, the stock offers value investors a compelling entry point and a generous 7.22% dividend yield. Altria Group Inc. (NYSE: MO) manufactures and sells smokable and oral tobacco products in the United States.

The company primarily sells cigarettes under the Marlboro brand, as well as:

  • Cigars and pipe tobacco, principally under the Black & Mild and Middleton brands
  • Moist smokeless tobacco and snus products under the Copenhagen, Skoal, Red Seal, and Husky brands
  • on! Oral nicotine pouches
  • e-vapor products under the NJOY ACE brand

It sells its tobacco products primarily to wholesalers, including distributors and large retail organizations, such as chain stores.

Altria used to own over 10% of Anheuser-Busch InBev S.A. (NYSE: BUD), the world’s largest brewer. Last year, the company sold 35 million of its 197 million shares through a global secondary offering. That represents 18% of its holdings but still leaves 8% of the outstanding shares in its back pocket. Altria also announced a $2.4 billion stock repurchase plan partially funded by the sale.

Goldman Sachs has a Buy rating with a $72 target price.

Energy Transfer

Energy Transfer L.P. (NYSE: ET) is one of North America’s largest and most diversified midstream energy companies. This top master limited partnership is a safe option for investors seeking energy exposure and income, as the company pays a substantial 8.01% distribution. Energy Transfer owns and operates one of the largest and most diversified portfolios of energy assets in the United States, with a strategic footprint across all major domestic production basins.

The company is a publicly traded limited partnership with core operations that include:

  • Complementary natural gas midstream, intrastate, and interstate transportation and storage assets
  • Crude oil, natural gas liquids (NGL), and refined product transportation and terminalling assets
  • NGL fractionation
  • Various acquisition and marketing assets

Following the acquisition of Enable Partners in December 2021, Energy Transfer owns and operates over 114,000 miles of pipelines and related assets in 41 states, spanning all major U.S. producing regions and markets. This further solidifies its leadership position in the midstream sector.

Through its ownership of Energy Transfer Operating, formerly known as Energy Transfer Partners, the company also owns Lake Charles LNG Company, the general partner interests, the incentive distribution rights, and 28.5 million standard units of Sunoco L.P. (NYSE: SUN), and the public partner interests and 39.7 million standard units of USA Compression Partners L.P. (NYSE: USAC).

J.P. Morgan has an Overweight rating for the shares with a $21 price target.

Healthpeak Properties

This leading company invests in real estate in the healthcare industry, including senior housing, life sciences, and medical offices. Healthpeak Properties Inc. (NYSE: DOC) is a fully integrated real estate investment trust (REIT) with a solid 7.28% dividend.

The company acquires, develops, owns, leases, and manages healthcare real estate across the United States. It owns, operates, and develops real estate focused on healthcare discovery and delivery.

Healthpeak Properties segments include:

  • Lab
  • Outpatient Medical
  • Continuing Care Retirement Community (CCRC)

The Lab segment properties contain laboratory and office space, and are leased primarily to:

  • Biotechnology
  • Medical device and pharmaceutical companies
  • Scientific research institutions
  • Government agencies
  • Organizations involved in the life science industry

The Outpatient medical segment owns, operates, and develops outpatient medical buildings, hospitals, and lab buildings.

Its CCRC segment comprises a retirement community offering independent living, assisted living, memory care, and skilled nursing units, providing a continuum of care within an integrated campus.

Baird has an Outperform rating with a $20 target price.

MPLX

MPLX L.P. (NYSE: MPLX) is a diversified, large-cap master limited partnership formed by Marathon Petroleum Corp. (NYSE: MPC). This company is one of the top holdings in the Alerian MLP Energy Exchange-Traded Fund and pays a healthy 7.24% dividend. MPLX is primarily engaged in transporting crude oil and refined products, with terminals in the U.S. Midwest and Gulf Coast regions, and in natural gas gathering and processing in the Northeast, following its 2015 acquisition of MarkWest Energy.

The company’s assets include:

  • Network of crude oil and refined product pipelines
  • Inland marine business
  • Light-product terminals
  • Storage caverns
  • Refinery tanks
  • Docks
  • Loading racks and associated piping
  • Crude and light-product marine terminals

MPLX also owns:

  • Crude oil and natural gas gathering systems
  • Pipelines, natural gas, and NGL processing and fractionation facilities in key U.S. supply basins

Wells Fargo has set a $59 target price to accompany its Overweight rating.

Plains All American Pipeline

This stock has been locked in a tight trading range and appears poised to break out, while offering a dependable 8.64% dividend yield. Plains All American Pipeline L.P. (NYSE: PAA) engages in the pipeline transportation, terminalling, storage, and gathering of crude oil and natural gas liquids (NGL) in the United States and Canada. It operates in two segments.

The Crude Oil segment offers:

  • Gathering and transporting crude oil through pipelines
  • Gathering systems
  • Trucks, barges, or railcars
  • Terminalling, storage, and other facilities-related services and merchant activities

The Natural Gas Liquids segment provides:

  • Gathering
  • Fractionation
  • Storage
  • Transportation
  • Terminalling activities
  • Ethane, propane, normal butane, iso-butane, natural gasoline, and crude oil refining processes

UBS has a Buy rating with a $25 price target.

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