5 Top Dividend Stocks Yielding More Than 5% to Buy in 2026 | The Motley Fool

Dividend yields have been steadily declining over the years as many companies have de-emphasized paying dividends. The dividend yield on the S&P 500 is currently near its record low at around 1.1%. That's well below its historical average of more than 4%. However, several companies prioritize paying dividends, enabling them to offer much higher dividend yields these days. Here are five stocks yielding more than 5% to buy for income in 2026. Image source: Getty Images. Ares Capital Ares Capital ( ARCC +1.00%) pays a monster 9.6% dividend yield. The business development company (BDC) makes debt and equity investments in private middle market companies (those with $100 million to $1 billion in annual revenue). The company primarily makes lower-risk secured loans across a highly diverse portfolio of companies. The BDC's investment strategy has enabled it to deliver 16 years of paying a stable to growing dividend. The company routinely makes new investments to replace the income from exited investments while also expanding its portfolio. During the third quarter, it committed to invest $3.9 billion across 35 new and 45 existing portfolio companies, more than offsetting the $2.6 billion of investments it exited. Ares Capital has a strong financial profile, enabling it to continue investing in support of its high-yielding dividend payment. NASDAQ: ARCC Key Data Points Brookfield Renewable Partners Brookfield Renewable Partners ( BEP 0.26%) currently yields 5.5%. That's a much higher yield than its economically equivalent corporate twin, Brookfield Renewable Corporation , which yields 3.8%. While the limited partnership sends investors a Schedule K-1 federal tax form each year, which can complicate tax filing, the higher yield is worth the extra work. The renewable energy company sells the electricity it generates to utilities and large corporations under long-term, fixed-rate power purchase agreements, which provide it with steadily rising cash flow. Brookfield uses that money to pay its dividend and invest in expanding its portfolio. It currently has a massive backlog of renewable energy development projects. Brookfield also routinely makes acquisitions to expand its portfolio. These investments support the company's plans to increase its dividend payment by 5% to 9% annually. Energy Transfer Energy Transfer ( ET 0.85%) has an 8.2% yielding distribution. The master limited partnership (MLP), which also sends a Schedule K-1 to investors, operates a diversified platform of energy midstream assets, including pipelines, processing plants, and export terminals. These assets generate stable cash flow backed by long-term contracts and government-regulated rate structures. NYSE: ET Key Data Points The MLP currently distributes a little more than half its stable cash flow to investors, retaining the rest to fund expansion projects. Energy Transfer expects to invest $5.2 billion in growth projects in 2026, up from $4.6 billion in 2025. It currently has expansion projects underway that should enter commercial service through the end of the decade, led by the $5.6 billion Desert Southwest pipeline expansion. These projects support the MLP's plans to increase its high-yielding payout by 3% to 5% each year. Starwood Capital Starwood Capital ( STWD +0.00%)...

Preview: ~500 words