Securing Passive Income: 6 High-Yield Dividend Stocks with Strong Payouts and Growth Potential for 2026 and Beyond

In a rising interest rate environment, income-focused investors face a dual challenge: securing reliable dividend yields while ensuring the sustainability of those payouts. As borrowing costs climb, companies with disciplined capital structures and resilient cash flows become increasingly attractive. Drawing on recent market analysis and financial metrics, six stocks stand out for their ability to balance high yields with long-term growth potential. These selections span energy, utilities, telecommunications, and real estate, offering diversified exposure to sectors poised to thrive in 2026 and beyond.

1. Energy Transfer LP (ET): A High-Yield MLP with Resilient Cash Flows

Energy Transfer LP, a master limited partnership (MLP), offers a forward yield of 8.2% and a payout ratio of 99.18% of earnings, which is typical for its structure according to recent analysis. With 2024 revenue of $82.7 billion and a market cap of $56.3 billion, ET benefits from long-term customer contracts and infrastructure projects that provide stable cash flows. Analysts rate it a "Strong Buy", with a price target suggesting over 54% upside potential. However, its near-100% payout ratio necessitates close monitoring of operational risks, such as regulatory delays or volume fluctuations. For MLP investors, ET's yield and infrastructure-driven growth make it a compelling option despite its high leverage.

2. Oneok Inc (OKE): Energy Infrastructure with Earnings Momentum

Oneok Inc, a midstream energy company, delivers a 5.75% forward yield and a payout ratio of 75.43%, supported by 2024 revenue of $21.7 billion. Analysts anticipate 15%+ earnings-per-share growth in 2026, driven by adjusted EBITDA expansion and stable cash flows. Its debt-to-equity ratio remains manageable, and its focus on natural gas infrastructure aligns with energy transition trends. While its payout ratio approaches the 75% threshold flagged as a sustainability risk, OKE's earnings resilience and strategic positioning in the energy sector justify its inclusion in a diversified portfolio.

3. Permian Resources Corp (PR): Energy Exploration with Disciplined Cost Control

Permian Resources Corp, an oil and gas producer, offers a 4.35% forward yield and a payout ratio of 40%, making it one of the most sustainable high-yield options. With 2024 revenue surging 60% to $5 billion and net income up 106% to $985 million, PR has demonstrated robust cost management, reducing drilling costs to $725 per lateral foot. Its high analyst ratings and 67% price target upside reflect confidence in its ability to capitalize on energy demand while maintaining disciplined capital allocation. For investors seeking growth alongside income, PR's low payout ratio and earnings momentum are key advantages.

4. DTE Energy (DTE): Utilities with Steady Growth and Conservative Payouts

DTE Energy, a utility company, provides a 3.6% forward yield with a payout ratio of 60%, balancing income and reinvestment for growth. Its 2024 revenue of $12.4 billion and net income of $1.4 billion underscore its stability, while 2026 operating EPS guidance of $7.59–$7.73 highlights earnings visibility. Utilities like DTE benefit from regulated environments and rising electricity demand driven by AI and data centers. With a payout ratio well below the 75% risk threshold, DTE exemplifies the "safe-yield" stocks that thrive in higher-rate environments.

5. Verizon Communications (VZ): Telecom with a Sustainable Dividend Streak

Verizon, a telecommunications giant, offers a 6.8% yield and a payout ratio of less than 60%, supported by 19 consecutive years of dividend growth. Its 2024 financials reflect strong cash flow generation, and its 5G infrastructure investments position it to benefit from long-term demand for connectivity. As interest rates rise, telecom stocks like VZ gain appeal due to their low volatility and predictable cash flows. With a payout ratio well within sustainable limits, VZ is a cornerstone for investors prioritizing income stability.

6. Realty Income (O): REITs with Monthly Income and High Occupancy

Realty Income, a real estate investment trust (REIT), delivers a 5.6% yield and distributes dividends monthly, a unique feature in the income space. Its high occupancy rate and diversified property portfolio-spanning retail, industrial, and healthcare-ensure steady rental income. REITs like O benefit from rising rates through higher financing costs for new developments, which can drive demand for existing assets. With a long history of dividend increases and a payout ratio aligned with REIT tax requirements, O provides a reliable income stream with growth potential.

Strategic Considerations for a Rising Rate Environment

While these six stocks offer compelling yields and varying degrees of payout sustainability, investors must remain cautious. Companies with payout ratios exceeding 75% (e.g., ET and OKE) require closer scrutiny of cash flow visibility and operational risks. Conversely, stocks like PR and VZ, with lower payout ratios, provide greater flexibility to navigate economic uncertainties. Diversification across sectors-energy, utilities, telecom, and real estate-further mitigates sector-specific risks.

As 2026 unfolds, the interplay of AI-driven demand, energy transition, and interest rate adjustments will continue reshaping the dividend landscape. For income-focused investors, the key lies in balancing yield with sustainability, ensuring that today's high payouts remain viable in tomorrow's economic reality.