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3 Consistent Dividend Payers Outperforming in 2026: VZ, PEP, MO

Key Takeaways

  • VZ, MO, and PEP have all outperformed relative to the S&P 500 in 2026.
  • Their consistent dividend-paying natures reflect attractive options for those seeking paydays.

Everybody loves dividends, mainly for their ability to generate a steady stream of income. Many large-cap stocks with an established history of consistent payouts are generally less volatile by nature, another positive benefit in the current landscape.

And for those seeking consistent payouts, three stocks – Altria (MO - Free Report) , Verizon Communications (VZ - Free Report) , and PepsiCo (PEP - Free Report) – could all be considerations.

Altria Keeps Paying

Altria boasts a leading portfolio of tobacco products for U.S. consumers, with its wholly owned subsidiaries including leading manufacturers of both combustible and smoke-free products.

Altria has long been a favorite among income-focused investors thanks to its shareholder-friendly nature, recognized not only as a Dividend Aristocrat but also as a Dividend King. Below is a chart illustrating its dividend payouts over the past decade. Shares currently yield 6.8% annually.

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Image Source: Zacks Investment Research

The company’s EPS estimates have remained stable while also inching higher across several timeframes, as shown below. Shares have had a great 2026, up nearly 15% and widely outperforming relative to the S&P 500.

Zacks Investment Research
Image Source: Zacks Investment Research

Verizon Shares Outperform

Verizon Communications is one of the largest telecommunications companies in the United States, providing wireless, broadband, and fiber-optic services to millions of consumers and businesses.

Strong cash generation has placed the company on many income-focused investors’ lists, with its low volatility also highly appealing. The company has posted $20.1 billion in free cash flow over a trailing twelve-month period, with shares currently yielding 5.6% annually.

Below is a chart illustrating the company’s dividends paid on an annual basis over the last decade.

Zacks Investment Research
Image Source: Zacks Investment Research

The earnings picture for VZ has also become bullish over recent months, with analysts revising their EPS expectations modestly higher across the board. Shares have benefited from the favorable revisions, up more than 20% in 2026 so far.

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Image Source: Zacks Investment Research

PepsiCo Remains a King

PepsiCo manufactures, markets, and distributes grain-based snack foods, beverages, and other products. The stock popped on its latest set of better-than-expected results, with improved operational efficiencies leading to 15% year-over-year EPS growth. Shares have also delivered outperformance relative to the S&P 500 in 2026 so far, up nearly 9%.

Similar to Altria above, PepsiCo also holds the elite Dividend King title, demonstrating an unparalleled commitment to its shareholders over its long history. Shares currently yield a solid 3.7% annually, with its dividend reliability over the last decade shown below.

Zacks Investment Research
Image Source: Zacks Investment Research

Bottom Line

Companies with a long history of consistent dividend payouts often offer a strong shield against volatility while generating passive income. After all, isn’t payday the best?

All three stocks above – Altria (MO - Free Report) , Verizon Communications (VZ - Free Report) , and PepsiCo (PEP - Free Report) – precisely fit the criteria.

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