Core Viewpoint - Dividend-paying stocks are expected to perform well in 2026 due to declining interest rates and the anticipated continuation of this trend, which will drive demand for dividend stocks and lower borrowing costs for certain sectors [3][4][5]. Group 1: Realty Income - Realty Income is a high-quality REIT with a current dividend yield of 5.72% and a market capitalization of $52.1 billion [7][12]. - The company has a strong track record, having declared 666 consecutive monthly dividends and increased its dividend for over 30 years [9]. - Realty Income focuses on stable tenants less affected by online competition, with a diversified portfolio of 15,500 properties primarily leased to commercial and industrial tenants [10][12][13]. - The company's tenants include 7-Eleven, Dollar General, and Walgreens, which provide non-discretionary items and services [13]. Group 2: NextEra Energy - NextEra Energy is a leading electric utility and renewable energy company with a dividend yield of 2.83% and a market capitalization of $167 billion [14][19]. - The company operates Florida Power & Light Company, the largest rate-regulated electric utility in the U.S., benefiting from Florida's growing population [15]. - NextEra is the world's largest producer of renewable energy from solar and wind, positioning it well for future growth [15]. - The company has increased its dividend for 31 consecutive years and plans to raise it by 10% through 2026, followed by targeted increases of 6% in 2027 and 2028 [18].
Dividend Stocks Are Poised to Perform Well in 2026 -- Here Are 2 of the Best Dividend Stocks to Buy Now