Dividends become attractive in 2026. First, investors began to doubt the growth of the technology sector, which is often focused on a few names. Adding to the current angst is that those words seem to revolve around topics and vibes.
At the core of this concern is instability. More retail investors are trading stocks than ever before. That, in addition to high-speed trading algorithms, can cause concern for even the most patient long-term investor.
That makes the income gains attractive. But profitability is only important if the underlying business supports dividend growth, and more importantly, greater returns for investors.
Avoid the Yield Trap
A high yield is not automatically a good yield. Sometimes it shows danger rather than opportunity. A “yield trap” occurs when a stock's price has fallen so far that the dividend yield looks attractive on paper, even though the underlying business can no longer support the payout. Warning signs include a payout ratio that approaches or exceeds 100% of earnings or free cash flow, rising debt levels, and declining income levels.
AT&T NYSE: T is a well-known example. Investors chased its yield for years before the company cut its dividend by nearly half in 2022 to redirect cash flow to debt reduction. The lesson: a sustainable payout ratio and a healthy balance sheet are more important than a headline yield.
That's why investors need to look beyond the attractive high yield and consider the underlying business. That's something investors can consider in these three stocks that offer a combination of reliable income with the added benefit of stock price growth in the second half of 2026 and beyond.
The Toll-Taker Dividend Play
Enterprise Product Partners NYSE: EPD is a mid-sized energy company with pipelines, storage facilities, processing plants, and export facilities throughout North America. The company transports commodities such as natural gas, natural gas liquids (NGLs), and crude oil.
Business Products Partners Today
Business Product Partners
- 52 week interval
- $30.01
▼
$40.17
- Dividend Yield
- 5.98%
- The P/E ratio
- 13.62
- Target Value
- $39.94
The main advantage of investing in mid-cap companies is that their business models are not dependent on the prices of crude oil or natural gas. They just collect money for what they deliver.
The immediate focus for investors is the country's concerns with Iran and the Strait of Hormuz. In its Q1 2026 earnings report, the company cited supply constraints that could cause earnings volatility. However, that concern will disappear once traffic through the Strait is normal.
Regardless of the landscape, EPD has delivered about a 15% gain in the first quarter of 2026 and is trading just below its consensus price of $39.94. That pairs well with a dividend yield of 6% and has increased for 28 years in a row.
Investors should be aware that Enterprise Product Partners is a master limited partnership (MLP). This makes the dividend as attractive as a real estate investment trust (REIT), but the structure comes with risk and tax concerns that investors should research before allocating money.
MPLX Doubles Down on Permian Growth
Mplx Today
- 52 week interval
- $47.80
▼
$59.98
- Dividend Yield
- 7.54%
- The P/E ratio
- 12.38
- Target Value
- $61.60
Another powerhouse name to consider is MPLX NYSE: MPLX. MPLX benefits from its relationship with parent company Marathon Petroleum NYSE: MPCwhich has a significant economic interest in the partnership and provides a built-in customer base for its refining segment.
That relationship, combined with an aggressive growth capital program in the Permian and Delaware basins, positions MPLX to expand natural gas processing and NGL capacity as production in the region continues to rise.
MPLX is up about 5% in the first half of 2026 and the consensus price is $61.60, which is about 8% above recent prices. It also suggests that there are many positives associated with a budget yielding more than 7.5%. MPLX has also historically maintained a leveraged distribution ratio comfortably above 1x—a cushion that gives the partnership room to continue increasing its payout even as asset markets fluctuate.
Big Income From Private Credit
Investing in private equity is crazy, right? Maybe and maybe not. These companies have been under the microscope as investors in some of them are under pressure, with investors asking for their money back due to concerns about loan quality.
Ares Capital Today
As of 07/2/2026 04:00 PM Eastern
- 52 week interval
- $17.40
▼
$23.42
- Dividend Yield
- 10.25%
- The P/E ratio
- 11.49
- Target Value
- $20.60
That said, these companies tend to pay attractive dividends and, under the right circumstances, can provide an opportunity for share price growth. Ares Capital NYSE: ARCC seems like a safe name in this space. The company's Q1 2026 earnings report highlighted the company's healthy, diversified portfolio.
That supports a balance sheet that makes the dividend, which yields a juicy 10.3%, very attractive for income. Also, analysts have a consensus price target of $20.60, which suggests upside of more than 10%.
The concern is that higher interest rates could force a reduction in profits.
However, if the Federal Reserve keeps rates at their current levels, which is still a very high-yielding outcome, Ares looks like a solid choice for cash-strapped investors.
Before you consider Business Product Partners, you'll want to hear this.
MarketBeat tracks Wall Street's top and most effective research analysts and the stocks they recommend to their clients every day. MarketBeat identified five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on… and Enterprise Products Partners was not on the list.
Although Enterprise Products Partners currently has a hold rating among analysts, senior analysts believe these five stocks are a better buy.
View Five Stocks Here
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