Federal Reserve Governor Stephen Miran, whose term ends on January 31, argued in a recent Fox Business interview that the Fed should implement well over 100 basis points (or one percentage point) of rate cuts this year to support economic growth. Miran contends that the current monetary policy is clearly restrictive and holding the economy back. He believes underlying inflation is basically at the Fed’s 2% target. He has consistently advocated for more aggressive rate reductions, having been the sole dissenting vote in favor of larger 50-basis-point cuts at the September, October, and December 2025 FOMC meetings.
Miran’s dovish stance stands in contrast to the vast majority of Fed officials, who have signaled more caution about future rate cuts. However, his views reflect concern that insufficient monetary easing could prevent a recovery in the labor market, which has been under pressure as job creation has slumped, and undermine the broader economic expansion he anticipates for 2026. The governor, who is on leave from his role as a top financial advisor during President Donald Trump’s first term, has repeatedly pressed for significant rate reductions.
However, should the economy take a deep dive during the first half of 2026, it is a good bet that the Federal Reserve would cut rates, and cut them fast, as it has during other times of economic upheaval like 2008/2009 and during the COVID-19 outbreak.
We decided to screen our 24/7 Wall St. high-yield dividend stock research database for stocks yielding at least 5%, Buy-rated by top Wall Street firms, and with solid upside potential. Five companies hit our screens, and all make sense for growth and income investors regardless of the path the Federal Reserve takes in 2026.
Why do we cover top high-yield dividend stocks?
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
Altria Group Inc. (NYSE: MO) is one of the world’s largest producers and marketers of cigarettes and other tobacco-related products. It offers value investors a compelling entry point and a generous 7.06% dividend yield. Altria manufactures and sells smokable and oral tobacco products in the United States through its subsidiaries.
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
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. Energy Transfer L.P. (NYSE: ET) pays a substantial 7.97% distribution. The company 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, 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.
Pfizer
Pfizer Inc. (NYSE: PFE) was established in 1849 in New York by two German entrepreneurs. This top pharmaceutical stock, which pays a huge 6.80% dividend, was a massive winner in the COVID-19 vaccine sweepstakes, but has been crushed over the past two years as many people have not received boosters. Pfizer discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products worldwide. It pays a dependable dividend that has risen annually for the past 14 years.
The company offers medicines and vaccines in various therapeutic areas, including:
- Cardiovascular, metabolic, and women’s health under the Premarin family and Eliquis brands
- Biologics, small molecules, immunotherapies, and biosimilars under the Ibrance, Xtandi, Sutent, Inlyta, Retacrit, Lorbrena, and Braftovi brands
- Sterile injectable and anti-infective medicines and oral COVID-19 treatment under the Sulperazon, Medrol, Zavicefta, Zithromax, Vfend, Panzyga, and Paxlovid brands
Pfizer also provides medicines and vaccines in various therapeutic areas, such as:
- Pneumococcal disease, meningococcal disease, and tick-borne encephalitis
- COVID-19 under the Comirnaty/BNT162b2, Nimenrix, FSME/IMMUN-TicoVac, Trumenba, and the Prevnar family brands
- Biosimilars for chronic immune and inflammatory diseases under the Xeljanz, Enbrel, Inflectra, Eucrisa/Staquis, and Cibinqo brands
- Amyloidosis, hemophilia, and endocrine diseases under the Vyndaqel/Vyndamax, BeneFIX, and Genotropin brands
Pfizer anticipates full-year 2025 revenues in the $62 billion range.
Jefferies has a Buy rating and a $33 target price.
UPS
The delivery giant announced it is cutting its shipping volume for e-commerce giant Amazon.com Inc. (NASDAQ: AMZN) by more than 50% by the second half of 2026, and it was one of the worst performers among top dividend picks, with a dividend yield now at 6.57%. United Parcel Service Inc. (NYSE: UPS) faced headwinds from discontinuing its Amazon business and expectations of slower economic growth. The package delivery company said the move is part of its broader strategy to focus on more profitable, less risky business segments. UPS provides a range of integrated logistics solutions for customers in more than 200 countries and territories.
Its segments include:
- U.S. Domestic Package
- International Package
The U.S. Domestic Package segment offers a range of domestic air and ground package transportation services within the United States. Its air portfolio offers time-definite, same-day, next-day, two-day, and three-day delivery alternatives as well as air cargo services.
UPS’s ground network enables customers to ship using its day-definite ground service. UPS SurePost provides residential ground service for customers with non-urgent, lightweight residential shipments.
The International Package segment comprises its small package operations in Europe, the Indian subcontinent, the Middle East and Africa, Canada, Latin America, and Asia. It offers a selection of guaranteed day- and time-definite international shipping services. Its supply chain solutions consist of forwarding, logistics, and other businesses.
Bank of America has a Buy rating with a $115 price objective.
Verizon
This American multinational telecommunications company continues to offer tremendous value. Verizon Communications Inc. (NYSE: VZ) trades 9.13 times its estimated 2026 earnings, pays a 6.72% dividend, and is up almost 9% in 2025. Verizon provides a range of communications, technology, information, and entertainment products and services to consumers, businesses, and government entities worldwide.
Verizon’s trailing 12-month interest coverage ratio is 4.6× to 5.0×, providing ample cushion for dividend payments. With a very predictable revenue stream from telecom services, the company has less exposure to commodity cycles. In addition, the large scale helps in financing and absorbing shocks.
It operates in two segments:
- Verizon Consumer Group
- Verizon Business Group
The Consumer segment provides wireless services across the United States through Verizon and TracFone networks, as well as through wholesale and other arrangements.
It also provides fixed wireless access (FWA) broadband through its wireless networks and related equipment and devices, such as:
- Smartphones
- Tablets
- Smartwatches and other wireless-enabled connected devices
The segment also offers wireline services in the Mid-Atlantic and northeastern United States through its fiber-optic network, Verizon Fios product portfolio, and copper-based network.
The Business segment provides wireless and wireline communications services and products, including:
- FWA broadband
- Data
- Video and conferencing
- Corporate networking
- Security and managed network
- Local and long-distance voice
Network access services to deliver various IoT services and products to businesses, government customers, and wireless and wireline carriers in the United States and internationally.
TD Cowen has a Buy rating and a $51 price target.
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