Published on February 17th, 2026 by Bob Ciura
Passive income stocks help you build rising income for retirement and/or financial freedom.
Passive income stocks are meant to be purchased once and never sold.
The beauty of earning passive income is that it allows investors to generate income for doing almost nothing.
The average dividend yield in the S&P 500 Index remains low at just 1.1%.
As a result, income investors should focus on higher-yielding securities, if they want additional income from their stock portfolios.
With this in mind, we compiled a list of high dividend stocks with dividend yields above 5%. You can download your free copy of the high dividend stocks list by clicking on the link below:
This article will discuss 10 passive income stocks with current yields over 6%.
Importantly, these 10 stocks have durable competitive advantages and strong underlying earnings, which support their dividends.
These 10 passive income stocks also have dividend payout ratios at or below 70%, which indicates a sustainable dividend right now.
The list also excludes stocks with a Dividend Risk score of ‘F’ in the Sure Analysis Research Database.
The 10 passive income stocks are listed below by current dividend yield, from lowest to highest.
Table of Contents
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- Passive Income Stock #10: Hormel Foods (HRL)
- Passive Income Stock #9: United Bancorp (UBCP)
- Passive Income Stock #8: Prudential Financial (PRU)
- Passive Income Stock #7: NNN REIT (NNN)
- Passive Income Stock #6: T. Rowe Price Group (TROW)
- Passive Income Stock #5: Enterprise Products Partners LP (EPD)
- Passive Income Stock #4: HP Inc. (HPQ)
- Passive Income Stock #3: Altria Group (MO)
- Passive Income Stock #2: Blue Owl Capital (OWL)
- Passive Income Stock #1: Perrigo plc (PRGO)
Passive Income Stock #10: Hormel Foods (HRL)
- Dividend Yield: 5.0%
Hormel Foods was founded in 1891 in Minnesota. Since that time, the company has grown into a $13 billion market capitalization juggernaut in the food products industry with about $12 billion in annual revenue.
Hormel has kept its core competency as a processor of meat products for well over a hundred years but has also grown into other business lines through acquisitions.
The company sells its products in 80 countries worldwide, and its brands include Skippy, SPAM, Applegate, Justin’s, and more than 30 others.
In addition, Hormel is a member of the Dividend Kings, having increased its dividend for 60 consecutive years.
Hormel posted fourth quarter and full-year earnings on December 4th, 2025.
Source: Investor Presentation
The company saw 32 cents in adjusted earnings-per-share for the quarter, beating estimates by two cents. Revenue was up 1.6% year-over-year and missed estimates by $30 million, coming in at $3.19 billion.
Adjusted operating margin was 7.7% of revenue, while cash flow from operations was $323 million. Volumes in the fourth quarter were flat in the retail segment, down 5% in foodservice, and down 7% in the international segment.
Hormel raised its dividend for the 60th consecutive year, this time adding 0.9% to a new payout of $1.20 per share annually. We start 2026 with an estimate of $1.47 in adjusted earnings-per-share.
Click here to download our most recent Sure Analysis report on HRL (preview of page 1 of 3 shown below):
Passive Income Stock #9: United Bancorp (UBCP)
- Dividend Yield: 5.1%
United Bancorp a financial holding company based in the United States, operating primarily through its wholly-owned subsidiary, United Bank.
The company offers a wide range of banking services including retail and commercial banking, mortgage lending, and investment services.
On August 21st, 2025, United Bancorp raised its dividend by 4.2% (YoY) to a quarterly rate of $0.1850, marking the 19th consecutive sequential (QoQ) increase.
On November 6th, 2025, United Bancorp reported its Q3 results for the period ending September 30th, 2025. The company announced total interest income of $10.6 million, representing a 7.0% year-over-year increase.
This growth was primarily supported by higher loan yields and a 4.5% expansion in gross loans to $496.5 million, as well as new investments in municipal securities at favorable yields.
Net interest income rose 9.6% to $6.7 million, driven by a 16-basis-point expansion in the net interest margin to 3.66%.
EPS was $0.34, marking a 9.7% increase from the prior year’s $0.31, reflecting continued balance sheet growth, disciplined expense management, and stable credit quality in a challenging macroeconomic environment.
Click here to download our most recent Sure Analysis report on UBCP (preview of page 1 of 3 shown below):
Passive Income Stock #8: Prudential Financial (PRU)
- Dividend Yield: 6.6%
Prudential Financial, now in business for over 140 years, operates in the United States, Asia, Europe and Latin America, with more than $1.6 trillion in assets under management (AUM).
The company provides financial products – including life insurance, annuities, retirement-related services, mutual funds, and investment management.
Prudential operates in four divisions: PGIM (formerly Prudential Investment Management), U.S. Businesses, International Businesses and Corporate & Other.
On February 3rd, 2026, Prudential announced fourth quarter and full year results. For the quarter, the company reported net income of $905 million, or $2.55 per share, versus a net loss of $57 million, or -$0.17 per share, in the prior year.
After-tax adjusted operating income totaled $1.168 billion, or $3.30 per share, compared to $1.068 billion, or $2.96 per share in the prior year. Adjusted EPS was $0.06 below estimates.
For the year, net income of $3.576 billion, or $9.99 per share, was up from $2.727 billion, or $7.50 per share, in 2024. Prudential is expected to earn $14.90 per share in 2026, which would be a 3.3% increase from the prior year.
On February 4th, 2026, Prudential declared a $1.40 quarterly dividend, marking a 3.7% increase.
Click here to download our most recent Sure Analysis report on PRU (preview of page 1 of 3 shown below):
Passive Income Stock #7: Enterprise Products Partners LP (EPD)
- Dividend Yield: 6.8%
Enterprise Products Partners was founded in 1968. It is structured as a Master Limited Partnership, or MLP, and operates as an oil and gas storage and transportation company.
Enterprise Products has a large asset base which consists of nearly 50,000 miles of natural gas, natural gas liquids, crude oil, and refined products pipelines.
It also has storage capacity of more than 250 million barrels. These assets collect fees based on volumes of materials transported and stored.
Source: Investor Presentation
On April 29, 2025, Enterprise Products Partners L.P. reported its financial results for the first quarter of 2025. The company posted a net income attributable to common unitholders of $1.4 billion, or $0.64 per diluted unit, compared to $1.5 billion, or $0.66 per unit, in the same quarter of 2024.
Distributable cash flow (DCF) increased by 5% year-over-year to $2.0 billion, providing 1.7 times coverage of the declared distribution and allowing the partnership to retain $842 million for reinvestment.
Adjusted EBITDA remained strong at $2.4 billion, reflecting consistent operational performance. The company declared a quarterly distribution of $0.535 per common unit, a 3.9% increase from the previous year.
Click here to download our most recent Sure Analysis report on EPD (preview of page 1 of 3 shown below):
Passive Income Stock #6: T. Rowe Price Group (TROW)
- Dividend Yield: 5.5%
T. Rowe Price Group, founded in 1937 and headquartered in Baltimore, MD, is one of the largest publicly traded asset managers.
The company provides a broad array of mutual funds, sub-advisory services, and separate account management for individual and institutional investors, retirement plans, and financial intermediaries.
T. Rowe Price had assets under management (AUM) of nearly $1.8 trillion as of the end of Q3 2025.
T. Rowe Price announced third-quarter results on October 31st, 2025.
Source: Investor Resources
Revenue for the quarter grew 5.6% to $1.89 billion, though this was $10 million less than expected. Adjusted earnings-per-share of $2.81 compared favorably to $2.57 in the prior year and was $0.27 above estimates.
During the quarter, AUMs totaled $1.77 trillion, which represented growth of 5.4 % year-over-year, but a decline of 1.1% sequentially. Market appreciation of $89.1 billion was offset by net cash outflows of $7.9 billion. Operating expenses of $1.25 billion increased 6.7% year-over-year and 0.4% quarter-over-quarter.
Click here to download our most recent Sure Analysis report on TROW (preview of page 1 of 3 shown below):
Passive Income Stock #5: Enterprise Products Partners LP (EPD)
- Dividend Yield: 5.9%
Enterprise Products Partners was founded in 1968. It is structured as a Master Limited Partnership, or MLP, and operates as an oil and gas storage and transportation company.
Enterprise Products has a large asset base which consists of nearly 50,000 miles of natural gas, natural gas liquids, crude oil, and refined products pipelines.
It also has storage capacity of more than 250 million barrels. These assets collect fees based on volumes of materials transported and stored.
On October 30, 2025, Enterprise Products Partners L.P. reported third-quarter 2025 results showing earnings per common unit of $0.61, missing the analyst consensus of approximately $0.68. Revenue for the quarter declined by about 12.7% year-over-year to $12.02 billion, but still slightly exceeded expectations around $11.83 billion.
Management cited headwinds from lower NGL and commodity service volumes, softer offshore export activity and modest mark-to-market hedging impacts, which weighed on net income despite stable downstream processing margins and strong midstream flows.
Click here to download our most recent Sure Analysis report on EPD (preview of page 1 of 3 shown below):
Passive Income Stock #4: HP Inc. (HPQ)
- Dividend Yield: 6.2%
Hewlett-Packard’s story dates back to 1935 with two men in a one-car garage making a huge impact on electronic test equipment, computing, data storage, networking, software and services that has lasted for more than eight decades.
On November 1st, 2015, Hewlett-Packard spun off Hewlett Packard Enterprise Company (HPE) and changed its name to HP Inc. (HPQ). Today HP Inc. has centered its business activities around two main segments: its product portfolio of printers, and its range of so-called personal systems, which includes computers and mobile devices.
HP reported its fourth quarter (fiscal 2025) results on November 25th, 2025.
Source: Investor Presentation
The company reported revenue of $14.6 billion for the quarter, which beat the analyst consensus estimate by a solid $150 million, and which was up 4% from the previous year’s quarter. This was a bit better than the performance of the company during the previous quarter, when revenues had grown at a slightly slower rate.
Non-GAAP earnings-per-share totaled $0.93 during the fourth quarter, which was just ahead of the analyst consensus estimate. HP Inc. saw its operating margin decline over the last year.
The company currently forecasts adjusted earnings-per-share in a range of $0.73 to $0.81 for the first quarter of the current fiscal year, which would mean a weaker result versus the most recent quarter.
For the current year, HP is expected to generate earnings-per-share of around $3.05, with management forecasting free cash flow at around $2.8 billion.
On November 26th, 2025, HP announced that it was raising its quarterly dividend 3.7% to $0.30 per share, extending the company dividend growth streak to 15 years.
Click here to download our most recent Sure Analysis report on HPQ (preview of page 1 of 3 shown below):
Passive Income Stock #3: Altria Group (MO)
- Dividend Yield: 6.3%
Altria is a tobacco stock that sells cigarettes, chewing tobacco, cigars, e-cigarettes, and more under a variety of brands, including Marlboro, Skoal, and Copenhagen, among others.
This is a period of transition for Altria. The decline in the U.S. smoking rate continues. In response, Altria has invested heavily in new products that appeal to changing consumer preferences, as the smoke-free category continues to grow.
The company also has a 35% investment stake in e-cigarette maker JUUL, and a 45% stake in the Canadian cannabis producer Cronos Group (CRON).
On July 30, 2025, Altria Group, Inc. reported its financial results for the second quarter of 2025. The company posted adjusted earnings per share of $1.44, surpassing the analyst estimate of $1.38 and rising 8.3% year over year.
Revenue came in at $6.1 billion, above the consensus estimate of $5.2 billion but down 1.7% compared to the same period last year. Net revenues were $6,102 million, with gross profit at $3,900 million and operating income at $3,200 million.
Net earnings stood at $2.4 billion, down from $3.8 billion in Q2 2024, impacted by a significant goodwill impairment in the e-vapor segment.
Domestic cigarette volumes declined 10.2%, but the smokeable products segment delivered solid adjusted operating companies income growth behind Marlboro’s strength.
Click here to download our most recent Sure Analysis report on Altria (preview of page 1 of 3 shown below):
Passive Income Stock #2: Blue Owl Capital (OWL)
- Dividend Yield: 7.3%
Blue Owl Capital is one of the world’s largest alternative asset managers that offers primarily permanent capital solutions to clients.
It is headquartered in New York City and went public in 2021. Its largest business segment is direct lending, but it also offers general partner private equity investment solutions and manages real estate and digital infrastructure investments.
On October 30, 2025, Blue Owl Capital Inc. (OWL) reported third-quarter 2025 results showing fee-related earnings of $0.24 per share and distributable earnings of $0.22 per share while declaring a quarterly dividend of $0.225 per Class A share payable November 24, 2025.
The company reported assets under management of approximately $295 billion as of September 30, 2025, supported by meaningful fundraising across its Credit, Real Assets and GP Strategic Capital platforms.
Management emphasized strong investor demand for private-market financing solutions, pointing to digital infrastructure, net-lease real estate, and middle-market direct lending as key growth areas while noting non-accruals remain minimal and credit quality stable.
Although net investment income per share declined sequentially to $0.37, down from $0.42 in the prior quarter, and net asset value per share slipped to $14.89, management reaffirmed that these fluctuations primarily reflect timing and accounting items rather than operational stress.
The firm highlighted recent fund launches, including a $1 billion digital infrastructure vehicle and a larger net-lease program, as evidence of its scalable platform.
Click here to download our most recent Sure Analysis report on OWL (preview of page 1 of 3 shown below):
Passive Income Stock #1: Perrigo plc (PRGO)
- Dividend Yield: 8.0%
Perrigo’s history goes all the way back to 1887 when Luther Perrigo, the proprietor of a general store and apple-drying business, had the idea to package and distribute patented medicines and household items for country stores.
Today, Perrigo is headquartered in Ireland. It operates in the healthcare sector as a manufacturer of over-the-counter consumer products.
Its Consumer Self-Care Americas segment is comprised of the U.S., Mexico and Canada consumer healthcare businesses.
The Consumer Self-Care International segment includes branded consumer healthcare business primarily in Europe, but also Australia and Israel.
On February 19th, 2025, Perrigo announced that it was raising its quarterly dividend 5.1% to $0.29, extending the company’s dividend growth streak to 23 consecutive years.
On November 5th, 2025, Perrigo reported third quarter results for the period ending September 30th, 2025. For the quarter, revenue decreased 5.5% to $1.04 billion, which was $60 million less than expected.
Adjusted earnings-per-share of $0.80 compared to $0.81 in the prior year, but this was $0.03 above estimates.
Source: Investor Presentation
Revenue was impacted by a 1.3% headwind related to divestitures and exited products. Organic sales fell 4.4% and were partially offset by a 1.6% benefit from favorable currency translation.
Consumer Self-Care Americas’ revenue decreased 3.8% as gains in Upper Respiratory, Skin Care, and Pain and Sleep-Aids was more than offset by weaker results in Nutrition, Digestive Health, Healthy Lifestyle, and Oral Care.
Consumer Self-Care International’s sales were down 4.5%, with most product categories seeing year-over-year declines. Just Oral Care and Skin Care were positive for the period. It was mentioned that Infant Formula and Oral Care segments were under strategic review.
Click here to download our most recent Sure Analysis report on PRGO (preview of page 1 of 3 shown below):
Final Thoughts & Additional Reading
If you are interested in finding high-quality dividend growth stocks and/or other high-yield securities and income securities, the following Sure Dividend resources will be useful:
High-Yield Individual Security Research
Other Sure Dividend Resources
- Dividend Kings: 50+ years of rising dividends
- Dividend Aristocrats: 25+ years of rising dividends and in the S&P 500
- Monthly Dividend Stocks: Individual securities that pay out every month















