Attractive Alternatives to the S&P 500
The S&P 500 (SNPINDEX: ^GSPC) currently offers a modest yield of just 1.1%. Investors seeking better returns can turn to dependable dividend growth stocks like Enterprise Products Partners (NYSE: EPD), Realty Income (NYSE: O), and Hormel Foods (NYSE: HRL), which boast yields as high as 6%.
Enterprise Products Partners
Enterprise Products Partners stands as a leading midstream company in North America, owning critical energy infrastructure for the transportation of oil and natural gas. As a master limited partnership, its earnings are primarily driven by fees from asset usage rather than the fluctuating prices of commodities, making it a low-risk option for energy exposure.
Dividend Consistency
Enterprise Products has excelled in rewarding income-focused investors, with a distribution yield around 6% and an impressive history of 27 consecutive annual distribution increases. This well-managed high-yield energy stock is appealing even to conservative investors.
Realty Income’s Scope
With over 15,500 properties, Realty Income is the largest net lease real estate investment trust (REIT). Its diverse asset base spans North America and Europe and includes a focus on retail, along with industrial properties and other niches like casinos. Recent initiatives include debt financing and growth in asset management capabilities.
Monthly Dividends
Realty Income offers a competitive yield of 4.6%, having increased its dividend annually for 30 years. The company is known as “The Monthly Dividend Company,” reflecting their commitment to consistent and reliable dividend payouts, a priority for both management and the board.
Challenges for Hormel Foods
Among these stocks, Hormel Foods faces more challenges. Operating in the consumer staples sector, it has a strong portfolio of food brands but has struggled to maintain profitability amid rising costs. This has led to a stock price decline, raising the dividend yield to around 4.6%.
Outlook for Investors
Hormel’s management has sought to rectify challenges, bringing back a respected former CEO, and has recently reported five quarters of increasing organic sales. With its dividend increase in December 2025 marking 60 years of consecutive annual increases, Hormel continues to demonstrate its reliability as a dividend stock. For those aiming to enhance income in their portfolios, exploring Enterprise, Realty Income, and Hormel is advisable due to their robust business models and substantial dividend histories.
