Dividend investing is a popular strategy for generating passive income, and as an investor, I'm always on the lookout for high-yielding dividend stocks. In this article, I'll be sharing my top three picks for May 2026, focusing on companies that not only offer attractive dividends but also have a history of increasing their payouts. These stocks are Main Street Capital, Vici Properties, and Verizon.
Main Street Capital
Main Street Capital (MAIN) is a business development company (BDC) that provides capital to middle-market companies, generating both interest and dividend income. One of the key strengths of Main Street Capital is its commitment to its investors. The company has a consistent track record of increasing its monthly dividend, having raised it by 141% since its IPO in 2007. This is a testament to its ability to sustain and grow its dividend payments, even during challenging economic times. Additionally, Main Street Capital has been paying supplemental quarterly dividends for 19 consecutive quarters, further enhancing its income yield of 7.8% at its recent share price.
Vici Properties
Vici Properties (VICI) is a real estate investment trust (REIT) specializing in experiential real estate. The company invests in market-leading gaming, hospitality, wellness, entertainment, and leisure destinations, leasing its properties under long-term, triple-net leases that escalate with inflation. Vici Properties has demonstrated impressive dividend growth, increasing its payout at a 7% compound annual rate since 2018, significantly outpacing the 2.4% average growth rate of other REITs. Recent investments, such as a $1.2 billion deal for seven gaming properties and a $1 billion expansion of real estate-backed loans, further solidify its commitment to dividend growth.
Verizon
Verizon (VZ) is a leading mobile and broadband provider, generating recurring revenue from its customers' cellphone and internet bills. The company's robust cash flow supports its 6%-yielding dividend, and it has a remarkable history of increasing its dividend for 19 consecutive years. With an expected free cash flow of $21.5 billion this year, up 7% from the previous year and the highest since 2020, Verizon is well-positioned to continue growing its payout. Its expansion strategy and cost-saving initiatives further support this growth.
Why These Stocks?
Main Street Capital, Vici Properties, and Verizon stand out for their combination of high-yielding dividends and a consistent history of increasing payouts. This makes them excellent choices for investors seeking both current income and long-term growth. These companies' commitment to their investors and their ability to navigate economic cycles make them top picks for dividend investors looking to build a steady stream of passive income.
In my opinion, these stocks offer a compelling opportunity for investors to generate stable and growing dividends, making them essential additions to any dividend-focused portfolio.
