Investors love it dividend stocks, especially those with high yields, because they provide a substantial income stream and offer significant total return potential. Total return includes interest, capital gains, dividends, and distributions made over time. In other words, the total return of an investment or portfolio consists of income and stock appreciation. Let’s examine the concept of total return. If you buy a stock at $20 that pays a 3% dividend ($0.60 per share) and the price increases 10% to $22 in one year, your total return is ($22 + $0.60 − $20) = 13%. This combines price appreciation and dividends received.
Now that the trading year is coming to an end, many investors will be looking to restart by 2026.
If the S&P 500 closes at roughly the same level it is trading at now on December 31, we will post the third consecutive year of double-digit gains.
While AI and hyperscalers will remain a focus in 2026, total return may be on many investors’ minds after a strong three-year run.
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There is nearly 10,000 publicly traded stocks in the United States; Not even the smartest investors with the best tools can find them all right away. Many investors and traders often maintain a small list of key stocks that they follow when looking for capital gains or high-yielding dividends. We decided to examine our 24/7 Wall St. high-yield database for solid companies yielding at least 6% with solid dividend coverage. Five of the stocks that hit our screens in December are potential total return champions that could offer investors a smooth ride into 2026, as we could see some major selling at some point next year. All are rated Buy on the top Wall Street companies we cover.
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Since 1926, Dividends have accounted for approximately 32% of the S&P 500’s total return, while capital appreciation has accounted for 68%. Therefore, sustainable dividend income and potential capital appreciation are essential for total return expectations. A study by Hartford Funds, in collaboration with Ned Davis Research, found that dividend stocks generated an annualized return of 9.18% over the past 50 years (1973 to 2023). Over the same period, this was more than double the annualized return on defaulters (3.95%).
Altria Group Inc. (NYSE: MO) is one of the world’s largest producers and marketers of cigarettes and other oral and smokable tobacco-related products in the United States. Its shares offer value investors a 6.26% dividend yield, a compelling entry point, and a generous 6.92% dividend yield.
The company mainly sells cigarettes under the Marlboro brand, as well as:
Cigars and pipe tobacco, mainly under the Black & Mild and Middleton brands.
Smokeless moist tobacco and snus products from Copenhagen, Skoal, Red Seal and Husky brands
in! oral nicotine pouches
E-vapor products under the NJOY ACE brand
sell your tobacco products primarily to wholesalers, including distributors and large retail organizations such as chain stores.
Used Altria own more than 10% of Anheuser-Busch InBev SA (NYSE: BUD), the world’s largest brewer. Last year, the company sold 35 million of its 197 million shares through a global secondary offering. That represents 18% of his holdings, but still leaves 8% of the outstanding shares in his back pocket. Altria also announced a $2.4 billion share buyback plan partially funded by the sale.
Stifel has a Buy rating with a $72 price target.
Business products Partners LP (NYSE: EPD) is an American midstream oil and natural gas pipeline company headquartered in Houston, Texas. This company is one of the largest publicly traded energy associations and pays a very reliable dividend of 6.81%. The company’s debt-to-EBITDA ratio ranges between 3.1 and 3.4 times, which is moderate for a midstream energy company, and its interest coverage ratio is 5 times.
Business products Partners generates strong free cash flow, with operating cash flow of approximately $8.8 billion, resulting in about $4.2 billion in free cash flow annually, after deducting capital expenditures. Another significant benefit for shareholders is that most corporate debt is fixed rate, which limits the risk of rising interest rates.
Business products Partners offers various midstream energy services, including:
Meeting
Treatment
Transportation and storage of natural gas, natural gas liquids (NGL) and fractionation.
Import and export terminalization
Offshore production platform services
The company has four reportable business segments:
Gas Pipelines and Natural Gas Services
NGL Pipelines and Services
Petrochemical services
Crude Oil Pipelines and Services
a reason Many analysts like the stock could be its distribution coverage ratio. The company’s coverage ratio is well above 1x, making it relatively less risky among MLPs.
J.Morgan It has an Overweight rating with a $38 price target.
this leader The company invests in real estate in the healthcare industry, including senior housing, life sciences and physician offices. Healthpeak Properties Inc. (NYSE: DOC) is a fully integrated real estate investment trust (REIT) that pays a stellar 6.98% dividend.
The company acquires, develops, owns, leases and manages healthcare real estate throughout the United States. Owns, operates and develops real estate focused on the discovery and delivery of healthcare.
health spike Property segments include:
The outpatient The medical segment owns, operates and develops medical buildings, hospitals and outpatient laboratories.
The laboratory segment The properties contain laboratory and office space, and are primarily rented to:
Biotechnology
Pharmaceutical and medical device companies
Scientific research institutions
Government agencies
Organizations involved in the life sciences industry.
Your CCRC segment is a retirement community offering independent living, assisted living, memory care and skilled nursing units, providing a continuum of care within an integrated campus.
Pfizer Inc. (NYSE: PFE) was founded in 1849 in New York by two German businessmen. This major pharmaceutical stock was a big winner in the COVID-19 vaccine sweepstakes, but has been crushed over the past two years because many people haven’t received boosters. Pfizer discovers, develops, manufactures, markets, distributes and sells biopharmaceutical products worldwide. It pays a reliable 6.78% dividend, which has increased annually for the past 15 years.
The company offers medicines and vaccines in various therapeutic areas, including:
Cardiovascular, metabolic and women’s health under the Premarin family and Eliquis brands
Biologics, small molecules, immunotherapies and biosimilars under the brands Ibrance, Xtandi, Sutent, Inlyta, Retacrit, Lorbrena and Braftovi.
Sterile injectable and anti-infective medications and oral COVID-19 treatment from the brands Sulperazon, Medrol, Zavicefta, Zithromax, Vfend, Panzyga and Paxlovid.
Pfizer too provides medicines and vaccines in various therapeutic areas, such as:
Pneumococcal disease, meningococcal disease, and tick-borne encephalitis.
COVID-19 under the brands Comirnaty/BNT162b2, Nimenrix, FSME/IMMUN-TicoVac, Trumenba and the Prevnar family
Biosimilars for chronic immune and inflammatory diseases under the brands Xeljanz, Enbrel, Inflectra, Eucrisa/Staquis and Cibinqo.
Amyloidosis, hemophilia and endocrine diseases under the brands Vyndaqel/Vyndamax, BeneFIX and Genotropin.
Pfizer anticipates full-year 2025 revenue in the range of $61.0 to $64.0 billion. This includes the expectation that revenue from COVID-19 products in 2025 will be broadly consistent with 2024 levels, after excluding approximately $1.2 billion of Paxlovid non-recurring revenue in 2024.
Jefferies has a Buy rating and a $33 price target.
this american The multinational telecommunications company continues to offer enormous value. Verizon Communications Inc. (NYSE: VZ) trades at 9.13 times its estimated 2026 earnings, pays a 6.60% dividend, and is up just 2% in 2025. The company offers a range of communications, technology, information and entertainment products and services to consumers, businesses and government entities around the world.
opera in two segments:
Verizon Consumer Group
Verizon Business Group
The consumer The segment offers wireless services throughout the United States through the Verizon and TracFone networks, as well as through wholesale and other agreements. It also provides fixed wireless access (FWA) broadband through its wireless networks and related equipment and devices, such as:
the segment also offers landline services in the Mid-Atlantic and Northeastern United States through its fiber optic network, its Verizon Fios product portfolio and its copper network.
The business The segment provides wired and wireless communications services and products, including:
Network access services to offer various IoT services and products to enterprises, government customers, and wireless and wireline operators in the United States and internationally.
Goldman Sachs It has a Buy rating and a $52 price target.
Five Must-Own Dividend Aristocrats That Can Withstand a Big Selloff Coming
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