Three Dividend-Yielding Opportunities Worth Watching in 2026

Why Dividend Stocks Continue to Outperform

Historical data shows a compelling case for income-focused investing. Over the past five decades, dividend-paying stocks have significantly outpaced their non-dividend counterparts, delivering average annual returns of 9.2% versus 4.3%. Among these, dividend growth stocks have proven especially rewarding with a 10.2% average annual return. Three companies stand out as particularly compelling candidates heading into 2026: Enterprise Products Partners (NYSE: EPD), Medtronic (NYSE: MDT), and VICI Properties (NYSE: VICI).

Enterprise Products Partners: Capitalizing on Completed Infrastructure Buildout

Enterprise Products Partners operates as a master limited partnership managing midstream energy infrastructure. The company wrapped up a major capital deployment cycle that started in 2022, with $6 billion in organic projects beginning commercial operations in the second half of 2025. As these assets ramp up operations, they’ll unlock substantial incremental cash generation for the partnership.

The partnership hit peak capital expenditure this year at $4.5 billion. Management projects spending will decline to $2.2-$2.5 billion annually going forward. This combination—rising cash flows alongside falling capital needs—positions the MLP to generate materially higher free cash flow during 2026 and beyond.

The immediate beneficiary will be shareholders. Enterprise recently expanded its share repurchase program from $2 billion to $5 billion. More significantly, the partnership has stretched its distribution increase streak to 27 consecutive years, most recently raising payouts by 3.8%. With its 6.7% yield and strengthening financial position, further distribution growth appears highly probable.

Medtronic: Approaching a Rare Dividend Milestone

Medtronic has demonstrated unwavering commitment to shareholders through 48 consecutive years of dividend increases—putting it just two years away from achieving Dividend King status, an exclusive club reserved for companies maintaining 50+ years of consecutive raises.

The medical devices manufacturer’s current 2.8% yield towers above the broader market’s 1.2%, reflecting the company’s stable cash generation. Recent operational performance supports confidence in its trajectory. In the second quarter of fiscal 2026, revenue expanded 6.6% year-over-year while earnings per share climbed 8%.

Looking ahead, management has outlined several strategic initiatives designed to unlock additional value. The company plans to spin off its diabetes care division next year, a move anticipated to improve operational margins and per-share earnings. Beyond this separation, Medtronic is evaluating supplementary options including potential asset sales and strategic acquisitions. These maneuvers could meaningfully accelerate growth momentum and reinforce the company’s dividend-raising capacity.

VICI Properties: Real Estate Growth Through Strategic Acquisitions

VICI Properties, a real estate investment trust specializing in experiential assets, maintains an exceptional track record. The REIT has delivered eight consecutive years of dividend increases since its inception, growing payouts at a 6.6% compound annual rate—substantially outpacing the 2.3% average among NNN lease properties REITs. Its current distribution yields 6.4%.

The portfolio expansion accelerates with a newly announced transaction. VICI recently reached an agreement to acquire seven gaming properties in Nevada through a $1.2 billion sale-leaseback arrangement with Golden Entertainment. Closing is targeted for mid-2026. This acquisition introduces diversification through Las Vegas Locals market exposure while expanding the tenant base to 15 operators. Rental income growth should follow, supporting continued distribution growth.

VICI’s financial engineering extends beyond property acquisitions. The REIT actively deploys capital through credit investments backed by experiential real estate—providing development financing while preserving optionality to acquire underlying assets later. Recent examples include $510 million in development funding for a casino resort and a $450 million mezzanine financing for a luxury mixed-use project. These credit strategies generate interest income while maintaining VICI’s investment flexibility.

The 2026 Outlook: Dividend Growth Catalysts Are Aligned

All three companies bring proven track records of returning capital to shareholders. Enterprise Products Partners transitions from investment mode to cash generation mode. Medtronic approaches a historic dividend milestone while executing strategic reorganization. VICI Properties expands its NNN lease properties footprint through accretive acquisitions.

The alignment of internal catalysts and external market conditions suggests 2026 will bring further distribution increases across all three positions. For income-focused investors, these dynamics merit serious consideration.