3 Top Dividend Stocks to Buy in December to Boost Your Passive Income in 2026

Core Viewpoint - Investing in dividend stocks like Chevron, NNN REIT, and Verizon is a strategic way to generate passive income, especially as these companies have a history of high and steadily rising dividends, making them attractive options for investors looking to boost their income in 2026 [1][13]. Chevron - Chevron pays a quarterly dividend of $1.71 per share, which annualizes to $6.84, resulting in a yield of 4.6%, significantly higher than the S&P 500's yield of 1.2% [2][5]. - The company has increased its dividend for 38 consecutive years, marking the second-longest streak in the oil sector [2]. - Chevron's breakeven level is low, requiring oil prices to average around $50 per barrel to sustain its dividend and capital spending, allowing it to generate substantial free cash flow even when crude prices are lower [3]. - The recent acquisition of Hess and ongoing capital investments are expected to drive over 10% compound annual free cash flow growth through 2030, supporting continued dividend increases [5]. NNN REIT - NNN REIT offers a quarterly dividend of $0.60 per share, equating to an annualized dividend of $2.40 and a yield of 5.9% [6][7]. - The REIT has a 36-year history of increasing its dividend, the third-longest streak in its sector [6]. - NNN REIT's business model focuses on freestanding retail properties with long-term, triple net leases, providing stable rental income as tenants cover all operating costs [8]. - The REIT conservatively pays out about 70% of its adjusted funds from operations (FFO) in dividends, allowing for reinvestment in new properties and maintaining a conservative balance sheet for financial flexibility [9]. Verizon - Verizon recently raised its quarterly dividend to $0.69 per share, resulting in an annualized dividend of $2.68 and a yield of 6.8% [10]. - The company has a 19-year streak of increasing its dividend payments [10]. - Verizon generates over $7 billion in excess free cash flow after covering capital expenses and dividends, contributing to a strong balance sheet [11]. - The anticipated $20 billion acquisition of Frontier Communications is expected to enhance Verizon's fiber network and customer service capabilities, further supporting dividend growth [12].