Chris Lange
6 min read
Quick Read
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ET delivered 19 consecutive distribution raises and zero analyst Sells, while ARCC tops the group with a 9.76% yield and $988 million in dividend cushion.
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EPD’s 1.9x distribution coverage and record $2.83 billion quarterly EBITDA make it the safest payout in this above-5% yield group.
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Just released. Our analysts combed the entire stock market and named the ten best stocks to buy right now, and British American Tobacco didn’t make the cut. Enter your email to see the names that beat BTI. The report is free. Enter your email and see if any of your stocks made the cut.
Income investors have had to work harder for yield in 2026 as tightening credit spreads and rising equity valuations compressed payouts across the S&P 500. That has pushed serious dividend hunters to a narrow shelf of names still throwing off cash well above the market, without triggering the usual red flags of a value trap. The screen for this list is straightforward: a current yield comfortably above 5%, a Wall Street consensus that still skews to Buy, a recent distribution increase, and coverage metrics that suggest the payout is durable.
Five names cleared every hurdle. We counted them down from #5 to #1.
#5. MPLX: Highest Yield in the Group, Most Divided Analyst Bench
MPLX (NYSE:MPLX) offers the fattest headline yield of the midstream trio at 7.15%, comfortably in ultra-high-yield territory above 6%. The MLP raised its Q2 2026 distribution to $1.0765 per common unit, a 12.5% year-over-year increase, and CEO Maryann Mannen reaffirmed that MPLX plans to grow the payout “at this rate again in 2026 and in 2027” while targeting 1.3x coverage. Leverage sits at 3.7x versus a 4.0x target. The rub: the analyst bench is split. The consensus breaks down to 2 Strong Buys, 5 Buys, 7 Holds and 1 Strong Sell, with an average target of $62.85 against a current price of $59.86. The risk is concentration: parent Marathon Petroleum still drives a large slice of throughput.
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#4. British American Tobacco: Sterling Payer, Slower Growth
British American Tobacco (NYSE:BTI) yields 6.09% and trades at a forward P/E of 10x. The FY2025 dividend of 245.04p per ordinary share was +2.0% versus 2024, and management is running a £1.3 billion share buyback in 2026. The bull case is the smokeless pivot: Velo revenue rose 48% at constant currency globally, and Modern Oral hit $1.165 billion, up 47.4%. Analysts lean bullish with 1 Strong Buy, 5 Buys and 1 Hold, target $70.43. Risk: combustibles still shrink, and FY2026 revenue guidance sits at the lower end of 3% to 5%.
