Income Investing: Exploring Growth and Stability
When it comes to income investing, the perception often skews toward stability rather than explosive returns. But what if you could have a blend of both? This is what investors might expect in 2026, as three high-dividend stocks are quietly outperforming the market, potentially leaving even more room for growth.
1. Broadcom
Broadcom (AVGO) experienced a remarkable rebound despite a drop of 15% during the first four months of the year in the semiconductor sector. Now, its forward dividend yield might seem modest at 0.6%, but it’s worth noting that Broadcom has increased its dividend 13 times over the last decade, boasting a compound annual growth rate of around 30%. This surge in dividends aligns well with the company’s robust free cash flow.
Additionally, Broadcom has been proactive with share buybacks, recently completing a $7.8 billion buyback in early 2026—considerably exceeding its dividend payouts. Investors can likely expect continued dividend growth, and with a consensus price target indicating a 14% upside, the outlook seems positive. Notably, revenue growth in Broadcom’s AI sector is thriving.
2. Enterprise Product Partners
In the context of geopolitical uncertainty with the ongoing war in Iran, Enterprise Products Partners (EPD) has reaped benefits. This midstream energy company has seen its pipeline inventories rise significantly, largely due to increasing U.S. oil and gas demand. Similar to Broadcom, Enterprise is tapping into the AI boom, as data centers demand stable energy sources, with natural gas being a prime candidate.
The company operates over 50,000 miles of pipelines, generating around two-thirds of its gross operating margin from the transportation and processing of natural gas. Notably, Enterprise has increased its distributions for an impressive 27 consecutive years, and its current dividend yield is about 5.8%. With approximately 90% of its long-term contracts featuring clauses to protect against inflation, the stability of its distributions looks promising.
3. Texas Instruments
Texas Instruments (TXN) ranks as the strongest performer among these three dividend stocks so far this year. The semiconductor giant’s stock has consistently outperformed the S&P 500, particularly in the past six weeks. Established in 1930, Texas Instruments has a remarkable track record, having raised its dividend for 22 consecutive years, with a projected yield over 1.8%.
The company plans to allocate between 40% to 80% of its free cash flow back to shareholders through dividends, which bodes well for investors. With expectations of significant growth in its primary markets—industrial, automotive, and data centers—Texas Instruments is well-positioned. These sectors are projected to account for 75% of its 2025 revenue, a substantial increase from 43% in 2013.
