Investors love dividend stocks because they provide dependable passive income streams and an excellent opportunity for solid total return. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the total return on an investment or portfolio consists of income and stock appreciation. At 24/7 Wall St., we have focused on dividend stocks for over 15 years because many people need reliable passive income streams to supplement their income from employment or other sources such as Social Security and pensions.
While many investors love the diversification that exchange-traded funds offer, they sometimes come with hefty expenses, year-end capital gains, and holdings that investors plain don’t want to own. Selecting high-quality, well-known companies that offer dividends of 6% or more is one of the best ways to build a reliable passive income stream. Furthermore, sophisticated investors often utilize a “Quality-Weighted Yield” approach, force-ranking companies by risk-adjusted returns to avoid potential yield traps. Plus, some investors can choose to write covered call options on their holdings to generate additional income, effectively layering premiums on top of existing dividends.
We screened our 24/7 Wall St. dividend stocks database, looking for well-known companies that pay reliable dividends of 6% or higher to shareholders and are also rated Buy on Wall Street. Five companies that passive income investors are buying hand over fist made our list, and all make sense for growth and income investors now.
Why do we cover top high-yield dividend stocks?
The current macroeconomic narrative has shifted toward a neutral rate path, with projections suggesting the Federal Reserve may target a 3.0%–3.5% federal funds rate by year-end. As short-term rates fall, dividend stocks become increasingly attractive relative to cash holdings. The more passive income can help cover rising costs—such as mortgages, insurance, taxes, and other expenses—the easier it is for investors to set aside money for future needs as they prepare for or begin retirement.
Altria
Altria (NYSE: MO | MO Price Prediction) is one of the world’s largest producers and marketers of cigarettes and other tobacco-related products. This stock offers value investors a solid entry point and a dividend yield currently hovering near 6.3%. 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 sold 35 million shares of Anheuser-Busch InBev (NYSE: BUD) in 2024, utilizing the proceeds for a $2.4 billion stock repurchase plan. The company maintains an 8% stake in the brewer.
Altria increased its quarterly dividend in the fall of 2025 by 3.9%, from $1.02 to $1.06 per share, marking its 55th consecutive dividend increase.
UBS maintains a Buy rating on the stock with a $74 target price.
Energy Transfer
Energy Transfer (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 distribution yield of approximately 7.0%. It 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. Core operations 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, Energy Transfer owns and operates over 114,000 miles of pipelines and related assets in 41 states. This further solidifies its leadership position in the midstream sector.
Through its ownership of Energy Transfer Operating, the company also owns Lake Charles LNG; the general partner interests, the incentive distribution rights, and 28.5 million standard units of Sunoco (NYSE: SUN); and the public partner interests and 39.7 million standard units of USA Compression Partners (NYSE: USAC).
Wells Fargo has an Overweight rating on the shares, with a $25 target price.
Pfizer
Pfizer (NYSE: PFE) has emerged as a powerhouse for income investors, currently yielding roughly 6.6%. This high-yield pharmaceutical giant trades significantly above its five-year average yield, offering a compelling opportunity for those seeking passive income backed by high free cash flow.
The company continues to leverage its massive scale in global healthcare, focusing on its robust pipeline of vaccines, oncology treatments, and internal medicine. Pfizer’s ability to maintain high payout levels while investing in R&D makes it a standout choice in a transitioning interest rate environment.
Morningstar currently lists Pfizer as a top dividend pick for mid-2026 due to its attractive valuation and dependable payout history.
UPS
United Parcel Service (NYSE: UPS) remains a cornerstone of the logistics sector with a current dividend yield of approximately 6.16%. It provides integrated logistics solutions for customers in more than 200 countries and territories.
The delivery giant is currently executing a strategy to focus on more profitable, less risky business segments. This includes the scheduled reduction of its shipping volume for Amazon by more than 50% through the second half of 2026.
While UPS has never trimmed its dividend since listing in 1999, the current focus is on maintaining stability and profit margins during a period of slower global economic growth.
Its U.S. Domestic Package segment offers a range of domestic air and ground package transportation services, including time-definite delivery alternatives and air cargo services. The International Package segment comprises small package operations across Europe, the Middle East, Africa, Canada, Latin America, and Asia.
Jefferies has a Buy rating with a $130 price objective.
Verizon
Verizon Communications (NYSE: VZ) is an American multinational telecommunications company that continues to offer tremendous value. Its shares trade at approximately 11.5 times estimated 2026 earnings, and it pays a dividend yield of approximately 6.1%. Verizon recently completed a dividend payment of $0.7075 per share on May 1, 2026.
Verizon’s trailing 12-month interest coverage ratio provides an ample cushion for continued dividend payments. With a predictable revenue stream from telecom services, the company remains insulated from commodity cycles.
It operates in two primary segments: the Verizon Consumer Group and the Verizon Business Group. The Consumer segment provides wireless services through Verizon and TracFone networks and fixed wireless access (FWA) broadband. The Business segment provides communications services and products, including corporate networking, security, and IoT services to government and enterprise customers.
Raymond James has an Outperform rating and a $56 price target.
Editor’s Note: This article has been updated with current Federal Reserve interest rate projections for 2026 and refreshed dividend yield data for Verizon, Altria, and Energy Transfer. General Mills was replaced with Pfizer to reflect current high-yield opportunities in the pharmaceutical sector, and new technical insights regarding quality-weighted yields and covered call strategies were added to the investment commentary.
Top Gaining Stocks
Top Losing Stocks