Want Safe Dividend Income in 2026 and Beyond? Invest in the Following 2 Ultra-High-Yield Stocks.

One of the challenges for income investors is finding high-yield dividend stocks that are a safe bet to keep growing and paying out a high dividend.

Many real estate investment trusts (REITs) and business development companies (BDCs) are mandated to pay out big dividends, but because of the specialty nature of these stocks and how sensitive they are to macroeconomic forces, the dividends can be unreliable for many of them, particularly those with double-digit yields, though certainly not all.

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In addition, stocks with high-yield dividends, either in the double-digits or high single digits, could be artificially high because the stock price tanked and the dividend is not sustainable.

So, the trick is to find high-yield dividends that aren’t yield traps and are sustainable. Here are a couple of great options.

  1. Western Union

Western Union (WU 2.06%) is the venerable money transfer business that’s been around since 1851.

It started off sending telegraphs and eventually morphed into a leading money transfer business. However, it is shifting again, as the money transfer revenue has been dwindling in this era with fintechs and blockchains offering new ways to send money.

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NYSE: WU

Western Union

Today’s Change

(-2.06%) $-0.20

Current Price

$9.53

Key Data Points

Market Cap

$3.0B

Day’s Range

$9.53 - $9.94

52wk Range

$7.85 - $10.90

Volume

7.5M

Avg Vol

8.5M

Gross Margin

32.79%

Dividend Yield

9.86%

While money transfer remains its major revenue generator, Western Union has been investing in its “digital first” strategy where it is focusing on digital money transfer services and away from the in-person retail locations. This has been the revenue growth driver as its consumer services segment, which includes its digital services, saw revenue climb 15% and operating income jump 72% last quarter.

The company increased its cash flow from operations last year to $544 million from $406 million the previous year and boosted its free cash flow. In addition, Western Union expects modest revenue and earnings growth in 2026.

This should bode well for Western Union to continue to deliver on its high-yield dividend. In February, it declared a $0.235 dividend at a super-high yield of 9.66%. That is one of the highest yields you can get for a non-REIT or BDC.

As for the stability of the dividend, Western Union has not raised its dividend in five years – but it has not lowered it, either. It has stayed at $0.235 since 2021. But before that it had seven straight years of raises.

Considering that the company seems to be successfully pivoting toward digital money services, that high-yield dividend looks pretty safe and it could be ready to move up.

  1. HP Inc.

HP Inc. (HPQ 0.24%), the computer and printer manufacturer, is another great high-yield dividend stock.

The stock pays out a dividend of $0.30 per share at an extremely high dividend yield of 6.39%. That’s not as high as Western Union, but it is certainly a safer yield with more growth potential.

HP has raised its dividend for 15 years in a row, so there is a commitment to boosting its annual payout. Further, the payout ratio is just 36%, which is pretty much right in the sweet spot as it means that a very comfortable 36% of its earnings are going toward the dividend, making it easily sustainable. In fiscal 2026, HP anticipates $2.8 billion to $3 billion in free cash flow, which is very strong and about the same as last year.

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NYSE: HPQ

HP

Today’s Change

(-0.24%) $-0.04

Current Price

$18.91

Key Data Points

Market Cap

$17B

Day’s Range

$18.61 - $19.15

52wk Range

$17.56 - $29.55

Volume

637K

Avg Vol

18M

Gross Margin

19.91%

Dividend Yield

6.23%

Also, while HP stock has struggled due to high costs for PC memory and a decline in printer sales, it has some catalysts that could boost earnings. First, it is planning to reduce expenses by $1 billion through 2028 including $250 million in 2026. It is also coming up on a five-year buying cycle for PCs after a boom in 2020. Further, its new artificial intelligence (AI) computers have seen robust sales growth at higher margins.

In addition, the stock is dirt cheap trading at 7 times earnings, so it is well positioned to move higher.

These are two strong options if you are looking for super-high yields as well as some comfort that they will continue to deliver great dividends.

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