Over the past three decades, real estate income has increased monthly dividends 132 times.
Enterprise Products Partners has increased its distribution for 27 consecutive years.
Main Street Capital has a unique dividend policy.
10 Stocks We Like More Than Real Estate Income ›
High yielding dividend stocks can be powerful passive income producers. The best pay long-term dividends that keep growing. This allows investors to collect a profitable and growing stream of passive income.
Company product partners(NYSE: EPD ), Real estate income(NYSE:O)and Main street capital(NYSE: MAIN) stands out for its high-quality, high-yield payouts. These dividend stocks pay out between 5.8% and 7.6%, which have steadily increased over the years. With more growth ahead, they can help increase your passive income production in 2026.
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Realty Income pays a monthly dividend that currently yields 5.8%. A real estate investment trust (REIT) pays dividends flawlessly. The company has increased the payment at least once a year since the 1994 has been listed on the exchange (a total of 132 times), including increases in the last 112 consecutive quarters. During that period, the payout grew by 4.2% at a compound annual rate.
REITs generate very stable cash flow. It owns a well-diversified portfolio of commercial properties (retail, industrial, gaming and others) secured by long-term net leases. These leases provide stable and continuously growing rental income backed by annual rental escalation clauses.
Real Estate Income has a very conservative dividend payout ratio and a fortress balance sheet. This provides financial flexibility to invest in new income generating commercial premises. These investments add to the rental income, allowing the REIT to continue to increase its monthly dividend payment.
Enterprise Products Partners’ distribution currently yields 7.2 percent. A master limited liability partnership (MLP) that sends a K-1 federal tax schedule form to investors each year also has an excellent payment record. It has increased its distribution for 27 consecutive years, every year since the IPO.
The mid-stream energy giant generates a very stable cash flow. Most of its assets are managed under long-term fee contracts or government-regulated rate structures. MLPs pay out a conservative percentage for distributions of their steady cash flow, keeping the rest to invest in development projects.
Enterprise Products Partners is currently completing a major multi-year development phase that began in 2022. These capital projects provide it with significant additional revenue. Meanwhile, it will generate even more free cash flow next year as capital spending falls. This will allow the MLP to return even more money to investors in 2026.
Main Street Capital is a business development company (BDC) with a rather unique dividend policy. It pays monthly dividends at a rate that can be sustained in more challenging market conditions. Therefore, it never stopped or reduced this payment. Instead, it has increased its monthly dividend by more than 130% since its IPO in 2007, including 4% in the past year. In addition, it periodically pays additional quarterly dividends to ensure that it meets IRS requirements that BDCs pay out at least 90% of their earnings in dividends. At current payout rates, Main Street Capital has a 7.6% dividend yield.
BDCs provide debt and equity capital to smaller private companies. Its debt investments typically have double-digit interest yields, while most of its equity investments generate dividend income. These income streams help support dividend payments.
Main Street Capital’s equity investments allow you to increase the value of your portfolio. The company can cash out the appreciation in value of these investments to invest in new debt and equity securities. It also has a strong balance sheet that supports its growth. New investments in the portfolio help support consistently increasing monthly dividends and the ability to continue to pay significant additional dividends.
Enterprise Products Partners, Realty Income and Main Street Capital provide investors with attractive, long-term and continuously growing passive income streams. This makes them a great dividend stock to buy now that 2026 will pay off. would receive more passive income.
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Matt DiLallo holds positions at Enterprise Products Partners, Main Street Capital and Realty Income. The Motley Fool has positions and recommends Real Estate Income. Enterprise Products Partners is recommended by The Motley Fool. The Motley Fool has a disclosure policy.
The Motley Fool originally published “3 Dividend Stocks With Yields Between 5.8% and 7.6% to Boost Your Passive Income Stream in 2026.”
