Finding a dependable source of income from the stock market has become increasingly difficult in 2026, with the S&P 500 index providing an unimpressive yield of about 1%. In this low-yield climate, companies like Enterprise Products Partners and Realty Income remain top choices for passive income seekers. Both offer attractive yields and a history of consistent performance.
Enterprise Products Partners stands out for its impressive 5.6% yield and its ability to boost its cash distribution for 27 consecutive years. The company focuses on the midstream energy sector, where it owns and operates vital infrastructure like pipelines and storage facilities. Rather than relying on the ups and downs of commodity prices, it generates income by charging fees for the use of its assets.
Enterprise Products Partners: A Steadfast Midstream Play
Unlike companies involved in volatile commodity trading, Enterprise prioritizes stable cash flow. Its large-scale infrastructure projects are expensive to build and take time to develop, resulting in modest growth. However, the company’s solid financial discipline ensures a healthy 1.7x coverage ratio for distributions. This gives investors confidence that regular payouts will continue, even in unpredictable markets.
Enterprise’s operations in the energy sector offer a reliable way to gain exposure to a vital industry. Its strong investment-grade balance sheet is especially valuable in 2026, a year marked by energy sector uncertainty. It allows investors to balance their portfolios while maintaining a foothold in a sector that remains essential for global economic stability.
Realty Income: A Consistent REIT with Global Reach
Realty Income gives investors a 4.9% yield along with a remarkable 31-year history of boosting its dividend. As the largest net-lease REIT, the company manages more than 15,500 properties, mostly single-tenant retail locations. This model helps ensure predictable income by placing most property expenses on the tenants.
Realty Income’s structure reduces its operational costs, making it more resilient to rising expenses. Additionally, over 20% of its rental income comes from Europe, giving the company geographic diversification and spreading risk across multiple markets. This broad presence helps protect against regional downturns.
While it isn't a fast-growing company, Realty Income offers a steady income stream. Its investment-grade balance sheet gives it a clear advantage, particularly since REITs must distribute the majority of their taxable income to maintain tax status. Larger, financially stable companies like Realty Income can more easily raise capital, which helps keep its cost of capital low compared to smaller firms.
Building a Stable Income Portfolio
Both Enterprise Products Partners and Realty Income offer dependable income despite their slower growth rates. For investors who value stability over rapid gains, these two stocks can serve as strong pillars in a well-balanced portfolio. They provide a consistent income base while allowing room for more aggressive, growth-oriented investments.
Enterprise Products Partners and Realty Income are two standout names for income-focused investors in 2026. Enterprise’s 5.6% yield and 27-year streak of increasing distributions highlight its consistent performance in the midstream energy sector. Its fee-based business model insulates it from the commodity price volatility typically seen in upstream and downstream energy companies. By focusing on pipelines, storage, and transportation assets, Enterprise is in a position to collect fees without being overly exposed to the fluctuations of the energy markets.
Its balance sheet, rated investment-grade, further supports the stability of its payouts. With a 1.7x coverage ratio on its distributions, there is a strong buffer to absorb any potential downturns. This level of conservative financial management is especially appealing to investors who are looking for income they can count on. While growth may be modest, the focus is clearly on sustainability and long-term stability.
Realty Income, on the other hand, has managed to achieve a 31-year streak of raising its dividend, with a current yield of 4.9%. As the largest net-lease REIT, the company owns over 15,500 properties, with 80% of those being single-tenant retail spaces. These properties are leased under long-term contracts, often with tenants responsible for property-level expenses. This structure significantly lowers operational risks and costs for the REIT.
The portfolio is also geographically diverse, with over 20% of rental income coming from Europe. This reduces exposure to any one region and helps protect the company from local economic or political issues. Although Realty Income is not a high-growth company, its consistent performance and strong balance sheet are key advantages.
Because REITs are required to distribute at least 90% of their taxable income to maintain their tax-exempt status, they must frequently raise capital. Larger, more established companies like Realty Income are better positioned to do this at a lower cost than smaller peers. This financial advantage makes it easier for the company to fund growth while maintaining its dividend.
For income investors, both Enterprise Products Partners and Realty Income represent solid foundational investments. They deliver predictable, dependable returns and offer a way to build a stable income base without relying on market timing or high-risk strategies. While neither company is likely to deliver explosive growth, both have proven their ability to maintain—and in some cases, grow—their dividends over the long term.
In a market environment where yields are generally low, investors should consider how to balance their portfolios between growth and income. Companies like Enterprise and Realty Income provide that balance by delivering consistent returns and acting as a foundation for more aggressive investments.