3 High-Yield Dividend Investments to Protect Against

High-Yield Dividend Investments to Protect Against

Inflation Whether you’re in retirement or not, generating consistent income can help you preserve your purchasing power and build long-term wealth, especially in an era of persistent inflation.

 As prices for everyday essentials climb think groceries, housing, and energy, traditional fixed-income assets like bonds can lose real value quickly.

Enter high-yield dividend investments: stocks and partnerships from companies with strong pricing power, allowing them to pass on cost increases to customers. These aren't just passive income machines; they're strategic hedges that can outpace inflation while delivering yields often exceeding 5%.

In this post, we'll dive into three standout options for 2026, selected for their robust dividend histories, sector resilience, and ability to thrive amid rising costs. Based on recent analyses, these picks offer a blend of stability and growth potential.

 

While dividends provide a buffer, they always diversify and consult a financial advisor, this isn't personalized advice.

1.   Realty Income (O):

The Monthly Dividend Machine in Real Estate If you're seeking reliability, Realty Income is the gold standard for dividend investors. Dubbed "The Monthly Dividend Company," this real estate investment trust (REIT) owns over 15,500 properties across 92 industries, from retail staples like drugstores to industrial warehouses. Is it secret sauce? Triple-net leases, where tenants cover taxes, insurance, and maintenance—shielding Realty Income from operational headaches. Why it hedges inflation: Real estate is a classic inflation fighter.

 

As consumer prices rise, so do rents. Realty Income's leases often include built-in escalators tied to inflation metrics like the Consumer Price Index (CPI), ensuring revenue growth keeps pace. In 2025 alone, the company completed $6 billion in acquisitions, bolstering its cash flow for future hikes.

 

 track record: At a forward yield of about 5.3%, Realty Income has raised its payout for 113 straight quarters, with a 4.2% compound annual growth rate (CAGR) over the past 30+ years.

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Trading at a reasonable price-to-earnings ratio, it's accessible via most brokerage accounts and pays monthly ideal for covering bills without dipping into principal.

For retirees, this means steady checks that adjust upward over time. Even non-retirees can use it to compound wealth: Reinvest those dividends, and you're looking at a powerful income snowball.

2.   structure's Steady Payer In a world where energy demands show no signs of slowing, Enterprise Products Partners stands out as a midstream powerhouse. This master limited partnership (MLP) operates a 50,000-mile network of pipelines, storage facilities, and export terminals, transporting natural gas, crude oil, and refined products across North America.

2.Enterprise Products Partners (EPD):

Energy Infra Why does it hedge inflation: Energy prices are notoriously sensitive to inflation, higher costs mean pricier fuel, which feeds back into the economy. EPD's fee-based contracts (think toll roads for oil) generate predictable revenue regardless of commodity swings, while volume growth from global demand provides upside. With capital spending dropping to $2.5 billion in 2026 after heavy 2025 investments, more free cash flow will flow to unitholders via buybacks and hikes.

Boasting a 6.4% yield, EPD has increased distributions for 27 consecutive years, including a 2.8% bump in its latest payout.

investment-grade balance sheet and low payout ratio (around 60%) signal sustainability, even if oil prices dip short-term. This one's favorite for income-focused portfolios. The tax implications of MLPs (via Schedule K-1) are a quirk, but they yield more than compensation for patient investors eyeing energy's long-term tailwinds.

3.   

3.Brookfield Infrastructure Partners (BIP):

Global Assets with Built-In Escalators Brookfield Infrastructure Partners offers a diversified play on the world's essential backbone: utilities, transport, midstream energy, and data infrastructure. From toll roads in Brazil to cell towers in India and hyperscale data centers in North America, BIP's portfolio spans regulated and contracted assets that hum along quietly.

 Why it hedges inflation: Many of BIP's revenues are inflation linked think automatic adjustments in utility rates or transport fees tied to CPI.

 In an AI-driven boom, data center demand is exploding, and BIP recycled $3 billion in capital in 2025 to fuel expansions here. This setup not only protects but amplifies returns as economies heat up.

With a 5% yield, BIP targets 5-9% annual dividend growth long-term, backed by 6-9% funds from operations (FFO) expansion.

17 straight increases, and its global diversification mitigates U.S.-centric risks. Whether you're padding a retirement nest egg or scaling a growth portfolio, BIP's blend of yield and appreciation potential makes it a versatile pick. Pro tip: Its sister company, Brookfield Renewable (BEPC), pairs nicely for green energy exposure. Wrapping Up: Build Your Inflation-Resistant Income Stream Inflation may ebb and flow, but these three high-yield dividend investments Realty Income, Enterprise Products Partners, and Brookfield Infrastructure Partners offer a fortified frontline. Together, they deliver an average yield north of 5.5%, with sectors primed to benefit from price pressures rather than suffer them.

Start small: Allocate 5-10% of your portfolio to each, reinvest dividends, and watch your income compound. Of course, markets evolve yields and prices fluctuate so stay informed via trusted sources like Morningstar or Seeking Alpha.

What's your go-to inflation hedge? Drop a comment below, and here's to dividends that keep delivering in 2026 and beyond! Disclosure: This is for educational purposes only. Past performance isn't indicative of future results. Do your due diligence.