It’s hard to get excited about the S&P 500’s miserly 1% yield if you’re a dividend-focused investor. Brokers from Fonndure dive into this topic, noting that despite how low yields have become across the broader market, several attractive high-yield options still exist for investors willing to dig a little deeper.
Three names worth examining right now are Enterprise Products Partners, PepsiCo, and Realty Income. Even the lowest yield among these three is four times what the S&P 500 currently offers.
Enterprise Products Partners: A 5.6% Yield From Energy Infrastructure
Enterprise Products Partners is a midstream master limited partnership that owns the energy infrastructure moving oil and natural gas around the world. The company charges fees for use of its assets, meaning volume matters more to its results than commodity prices themselves.
The company has raised its payout for 27 straight years, supported by distributable cash flow that covers the distribution by a solid 1.7×. It plans to invest $5.3 billion in capital projects to sustain future growth. With a current yield of 5.6%, the investment case leans toward consistent income and gradual growth rather than significant price appreciation.
PepsiCo: A Dividend King Trading at an Attractive Price
PepsiCo holds the prestigious status of a Dividend King, having rewarded shareholders with annual dividend increases for over 50 consecutive years. Its current 4.3% dividend yield sits near the upper end of its historical range, signaling to value-focused investors that the stock may currently be trading at an attractive entry valuation relative to its historical performance.
Established in 1898, PepsiCo has demonstrated remarkable longevity by navigating over a century of economic shifts, market crashes, and evolving consumer habits. Beyond soft drinks, the company’s vast global portfolio features iconic snack and food brands like Frito-Lay and Quaker, providing deep operational diversification that helps stabilize revenue during broader market downturns.
To combat modern challenges like inflationary cost pressures and changing health trends, PepsiCo actively adapts its business model. It invests in acquiring high-growth emerging brands, innovating healthier core product lines, and applying sophisticated pricing and packaging strategies to defend profit margins.
This blend of high current income, inflation resistance, and proven brand power makes PepsiCo a reliable core holding for long-term investors prioritizing stability.
Overall, its robust balance sheet, extensive global reach, and reliable cash flows reinforce why it remains a premier choice for defensive portfolio growth across all economic conditions today.
Realty Income: A 5% Yield From a Diversified REIT Giant
Realty Income is the largest net-lease REIT, meaning tenants cover most property-level costs, which reduces both operating expenses and risk for the company. Its portfolio spans single-tenant retail properties along with industrial assets and more unique holdings like casinos, vineyards, and data centers.
With more than 15,500 properties spread across North America and Europe, Realty Income ranks among the most diversified REITs available to investors. The company has increased its dividend annually for 31 years, and recently launched a fee-based asset management business for institutional investors, extending its growth into an adjacent business line it already knows well.
The Bottom Line for Income Investors
The broader “market” is not a single entity but a collection of thousands of companies, and while the S&P 500’s headline yield may look unappealing, there are still high-quality businesses offering meaningfully higher income.
Companies such as Enterprise Products Partners, PepsiCo, and Realty Income demonstrate that investors can find reliable, above-average payouts without venturing into speculative territory. Each represents a different income strategy, spanning energy infrastructure, consumer staples, and real estate.
Enterprise Products Partners operates with a fee-based business model that generates stable cash flow, making it less sensitive to commodity price volatility than traditional energy producers.
This stability has supported a long track record of consistent distribution growth, positioning it as a strong option for investors seeking high yield with relatively lower risk in the energy sector.
PepsiCo offers defensive income backed by everyday consumer demand and globally recognised brands. Its products remain staples across economic cycles, enabling resilient revenues even during downturns.
Combined with a decades-long history of dividend increases, this makes PepsiCo a compelling choice for those prioritising steady, growing income from a stable business model.
Meanwhile, Realty Income provides income through predictable rental streams generated by long-term lease agreements. Known for its monthly dividend payments, the company has built a reputation for consistency and reliability, appealing to investors who value frequent income and stability from real estate exposure.
Taken together, these companies highlight that attractive income opportunities still exist beyond index-level averages. By combining diversified sectors, durable business models, and proven dividend growth, investors can enhance portfolio income while maintaining a focus on long-term reliability.