Three Dividend Powerhouses Positioned for Growth in 2026

Dividend investing has proven its staying power. Historical data reveals that over the past five decades, dividend-paying stocks have consistently outpaced their non-dividend counterparts, delivering returns of 9.2% annually versus 4.3%. Among these, dividend growth stocks have emerged as the strongest performers, averaging 10.2% annual gains.

Three companies stand out as prime candidates for investors seeking reliable income with growth potential: Enterprise Products Partners, Medtronic, and VICI Properties. All three have demonstrated remarkable track records of expanding their payouts year after year, with catalysts already in motion that should accelerate dividend growth throughout 2026.

VICI Properties: A REIT Reshaping Real Estate Income

VICI Properties has become a standout performer in the real estate investment trust landscape. Since its inception, the company has boosted its dividend for eight consecutive years, achieving an impressive 6.6% compound annual growth rate—substantially outpacing the 2.3% average seen among peer REITs focused on triple net lease properties. (For those interested in evaluating such properties systematically, a triple net lease calculator can help investors assess the income potential of NNN real estate.)

The REIT’s current dividend yield of 6.4% reflects its commitment to shareholder returns. A significant catalyst is unfolding in 2026: VICI Properties has agreed to acquire seven gaming assets in Nevada through a $1.2 billion sale-leaseback arrangement with Golden Entertainment. This transaction, expected to close mid-2026, will expand the company’s geographic reach into the Las Vegas Locals market while adding a 15th tenant to its portfolio.

Beyond acquisitions, VICI Properties is employing credit strategies that generate additional income streams. The company recently committed $510 million in development funds for a casino-resort project and extended a $450 million mezzanine loan supporting a luxury mixed-use development. These investments produce interest income while creating future acquisition opportunities, further supporting the REIT’s ability to sustain dividend expansion.

Enterprise Products Partners: Capital Investments Converting to Cash Flow

Enterprise Products Partners, a master limited partnership, is transitioning from a heavy investment phase into a cash generation phase. The company deployed its peak investment spending of $4.5 billion this year, while preparing to scale back to $2.2 billion to $2.5 billion annually going forward.

The shift is deliberate: during the second half of this year, the MLP placed $6 billion in organic capital projects into service. As these infrastructure assets ramp up operations in coming quarters, they will generate substantial incremental cash flow—the primary driver of future distributions.

With expenditures declining and cash flows accelerating, Enterprise Products Partners is positioned to generate significantly more free cash flow in 2026. This improved financial flexibility enables the company to expand both its distribution payments and its repurchase program, which was recently increased from $2 billion to $5 billion.

The company’s track record is equally impressive: it has raised its distribution for 27 consecutive years. The current yield of 6.7% stands to grow even more attractive as the partnership channels additional cash back to unit holders.

Medtronic: A Near-Dividend King on the Verge of History

Medtronic operates in a different league, with 48 years of consecutive dividend increases already in the books. The medical technology giant is just two years away from joining an exclusive club: companies that achieve 50 consecutive years of dividend growth—a distinction known as “Dividend King” status.

The company’s financial momentum supports continued expansion. In its fiscal 2026 second quarter, Medtronic achieved 6.6% revenue growth while earnings per share surged 8%. Its current dividend yield of 2.8% more than doubles the S&P 500’s 1.2%, providing meaningful income above the broader market.

Strategic initiatives are underway to accelerate growth further. Medtronic plans to separate its diabetes business unit next year, a move expected to enhance margins and boost earnings per share. The company is also evaluating other strategic options, including potential acquisitions and additional divestitures. These transformations should position the company for accelerated growth, creating room for even more robust dividend increases as it progresses toward Dividend King status.

A Strategic Window for Income Investors

All three companies share a compelling narrative: established dividend growth histories coupled with near-term catalysts that should drive payouts higher in 2026. Enterprise Products Partners will benefit from the commercial deployment of major infrastructure projects. Medtronic stands on the threshold of becoming a Dividend King. VICI Properties is expanding its real estate footprint while diversifying its tenant base.

For income-focused investors, these three stocks represent compelling opportunities to capture both current yield and future growth—a rare combination worth exploring before these catalysts fully materialize.