High-Yield Dividend Stocks: A Decade-Long Strategy for Passive Income

For investors seeking to build a resilient, long-term income portfolio, high-yield dividend stocks in the energy and real estate sectors offer a compelling blend of stability and growth potential. These sectors, anchored by infrastructure and real assets, provide predictable cash flows and defensive characteristics that can weather economic cycles. Among the most promising candidates are Enterprise Products Partners (EPD), Kinder Morgan (KMI), and Realty Income (O), each of which combines robust financial metrics, long-term contractual visibility, and a track record of consistent dividend growth.

Enterprise Products Partners: Energy Infrastructure's Dividend Powerhouse

Enterprise Products Partners, a leading energy infrastructure company, has cemented its position as a high-yield dividend stock with a forward yield of 6.8% as of late 2025-nearly six times the S&P 500 average according to stock analysis. This yield is underpinned by strong distributable cash flow (DCF), which totaled $1.8 billion in Q3 2025, despite a slight decline from $2.0 billion in the same period in 2024 as reported in earnings. The company's ability to maintain a payout ratio of 1.5 times DCF coverage in Q3 2025 demonstrates its financial discipline as confirmed in financial reports.

A key catalyst for long-term investors is Enterprise's capital allocation strategy. The partnership expanded its common unit buyback program from $2.0 billion to $5.0 billion, signaling confidence in its cash flow generation according to market analysis. Management also anticipates a material increase in free cash flow in 2026 following the completion of major projects like the Bahia NGL pipeline and Neches River Terminal as detailed in investment analysis. These developments position Enterprise to sustain-and potentially grow-its dividend while reinvesting in infrastructure that aligns with the energy transition.

Kinder Morgan: Fee-Based Growth in Energy's Backbone

Kinder Morgan, a titan in North American energy infrastructure, offers a 4.3% dividend yield with a 2025 payout of $1.17 per share, reflecting a 2% annual increase as reported in Q3 2025 results. The company's financial strength is anchored by 95% of earnings derived from long-term, take-or-pay contracts, ensuring stable cash flows even in volatile markets according to financial analysis. In Q3 2025, Kinder Morgan generated $1.4 billion in cash flow from operations and $600 million in free cash flow, underscoring its ability to fund dividends and growth projects as confirmed in financial guidance.

The company's $9.3 billion project backlog, focused on natural gas and LNG infrastructure, provides a clear growth trajectory. Preliminary 2026 guidance projects net income of $3.1 billion and a dividend increase to $1.19 per share, driven by expanding global demand for natural gas and favorable regulatory tailwinds as projected in market analysis. Kinder Morgan's fee-based business model, combined with its strategic investments in decarbonization technologies, positions it as a durable income generator for the next decade.

Realty Income: The Monthly Dividend Company's Resilience

Realty Income, known as "The Monthly Dividend Company," has delivered 113 consecutive quarterly dividend increases, including a 2025 yield of 5.7% according to financial data. This consistency is supported by a diversified portfolio of 15,500+ properties across the U.S., U.K., and Europe, with tenants in non-discretionary retail and service sectors. These tenants, such as pharmacies and auto repair shops, exhibit low default risk and steady cash flows regardless of economic conditions as noted in financial analysis.

In 2025, Realty Income expanded into high-growth sectors like gaming and data centers, including partnerships with Digital Realty, to diversify its revenue streams according to analyst reports. The company also plans to invest $6 billion in 2025 at an initial weighted average cash yield of 7.5%, further bolstering its income potential as reported in financial updates. Analysts have raised price targets to $60–$63, reflecting confidence in its investment-grade balance sheet (rated A3/A– by Moody's and S&P) and disciplined capital allocation as cited in market analysis.

A Diversified Approach to Long-Term Income

While Enterprise Products Partners and Kinder Morgan offer exposure to energy infrastructure's fee-based growth, Realty Income provides a counterbalance with real estate's inflation-resistant cash flows. Together, these stocks form a diversified core for a decade-long passive income strategy. Enterprise and Kinder Morgan benefit from long-term contracts and capital-light projects, while Realty Income leverages sticky tenant relationships and asset diversification.

For investors prioritizing income preservation and growth, the key is to balance yield with sustainability. Enterprise's 6.8% yield is supported by $1.8 billion in DCF, Kinder Morgan's 4.3% yield by $600 million in free cash flow, and Realty Income's 5.7% yield by $6 billion in 2025 investments. All three companies have demonstrated the ability to navigate macroeconomic headwinds while maintaining-and often increasing-their payouts.

Conclusion

High-yield dividend stocks in energy and real estate are not just about capturing today's attractive yields; they're about securing tomorrow's income. Enterprise Products Partners, Kinder Morgan, and Realty Income exemplify this philosophy, combining robust cash flows, long-term contractual visibility, and disciplined capital returns. For investors with a 10-year horizon, these companies represent a rare trifecta: income, growth, and resilience.