3 Top Dividend Stocks I Plan to Buy Hand Over Fist in 2026

4 days ago 10

Matt DiLallo, The Motley Fool

Sat, December 20, 2025 astatine 12:35 PM CST 5 min read

Brookfield Renewable aims to summation its dividend by 5% to 9% each year.
Realty Income has hiked its dividend for 113 consecutive quarters.
Medtronic has raised its dividend for 48 consecutive years.
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Investing successful dividend stocks is simply a proven mode to turn wealth. Over the past 50 years, dividend stocks person delivered much than treble the mean yearly full instrumentality compared to non-dividend payers, according to information from Ned Davis Research and Hartford Funds. The highest full returns person travel from companies that steadily summation their dividend payments.

Brookfield Renewable (NYSE: BEPC)(NYSE: BEP), Realty Income (NYSE: O), and Medtronic (NYSE: MDT) person terrific way records of expanding their dividends. That's 1 crushed why I program to bargain a lot much shares successful the coming year.

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Brookfield Renewable's banal presently yields 4%. The starring planetary renewable energy shaper has accrued its outgo by astatine slightest 5% successful each of the past 14 years. It expects to present dividend maturation successful the scope of 5% to 9% annually successful the coming years.

The company's extended renewable vigor portfolio produces very unchangeable currency travel backed chiefly by semipermanent fixed-rate contracts with built-in inflation-linked complaint escalation clauses. As a result, it should present steadily increasing currency flow.

Brookfield besides invests superior to grow its portfolio via improvement projects and acquisitions. It has a immense pipeline of projects nether operation oregon successful precocious stages of development. The institution besides has ample liquidity to money acquisitions that it routinely replenishes by recycling capital. These catalysts thrust Brookfield's presumption that it tin turn its funds from operations (FFO) astatine a much than 10% yearly complaint successful the coming years.

Realty Income pays a monthly dividend that presently yields 5.7%. The existent property concern spot (REIT) has a terrific grounds of expanding its payout. It has raised its outgo 133 times since its nationalist marketplace listing successful 1994, including the past 113 quarters successful a row. The REIT has grown its payout astatine a 4.2% compound yearly complaint during this clip frame.

The landlord is in a beardown position to proceed expanding its dividend. It has a blimpish dividend payout ratio for a REIT astatine astir 75% of its adjusted FFO. That enables it to make around $850 cardinal successful escaped currency travel each twelvemonth to reinvest successful caller income-generating properties. Realty Income besides has 1 of the 10 champion equilibrium sheets successful the REIT sector, giving it further backing flexibility.