Three Dividend-Growth Stocks Positioned for Expansion in 2026

Dividend-paying equities have demonstrated remarkable staying power as long-term investments. Historical analysis reveals that over a 50-year horizon, dividend stocks have roughly doubled the returns of non-dividend payers, delivering approximately 9.2% in annualized total returns versus 4.3%. Among these performers, dividend growth stocks have led the way with 10.2% average annual gains. As 2026 approaches, three established dividend payers stand out for their robust expansion plans and near-term catalysts.

Medtronic Inches Toward Rare Dividend Milestone

Medtronic (NYSE: MDT) occupies a distinctive position in the dividend landscape. The medical technology company has extended its dividend increases for 48 consecutive years—positioning it within striking distance of “Dividend King” status, which requires 50 consecutive years of payout growth.

The company’s current dividend yield of 2.8% substantially outpaces the broader S&P 500 yield of 1.2%, offering income-focused investors meaningful returns. Recent operational performance supports continued growth momentum. In its fiscal 2026 second quarter, Medtronic reported revenue expansion of 6.6% alongside earnings-per-share growth of 8%, demonstrating both top-line acceleration and margin improvement.

Management is implementing strategic initiatives designed to unlock additional shareholder value. The planned separation of its diabetes care business represents a significant catalyst, expected to enhance operating margins and boost per-share earnings. Additionally, the company is evaluating complementary moves including potential acquisitions and divestitures. These actions should create momentum heading into 2026, reinforcing the company’s ability to sustain its multi-decade dividend-growth trajectory.

VICI Properties Delivers Consistent Dividend Expansion

VICI Properties (NYSE: VICI), a specialized real estate investment trust, has cultivated an impressive dividend-growth record since its inception. The company extended its September dividend increase to mark eight consecutive years of expanding payouts, each year delivering increases to unitholders.

The REIT’s compound annual dividend-growth rate of 6.6% substantially exceeds typical triple-net-lease REIT performance, which averages just 2.3%. This peer-leading expansion has translated into an attractive current yield of 6.4%, appealing to income-oriented portfolios.

Growth catalysts are well-defined for 2026. VICI Properties recently committed to acquiring seven gaming properties across Nevada through a sale-leaseback arrangement valued near $1.2 billion, with expected close around mid-2026. This transaction meaningfully expands portfolio diversification by introducing exposure to the Las Vegas Locals gaming market and adding a 15th tenant to the rent roll. Beyond traditional property acquisitions, VICI Properties has diversified into credit-oriented investments linked to experiential real estate—including a recent $510 million commitment for casino-resort development funding and a $450 million mezzanine loan supporting luxury mixed-use development. These credit instruments generate interest income while often preserving VICI’s optionality to acquire underlying assets, thereby sustaining the financial flexibility required for continued dividend growth.

Enterprise Products Partners Approaching Peak Investment Phase

Enterprise Products Partners (NYSE: EPD), structured as a master limited partnership, is transitioning through a critical inflection point. Following years of substantial capital deployment that began in 2022, the partnership is placing $6 billion in organic capital projects into service during the second half of the current year. This investment phase represents a peak-spending period at $4.5 billion annually.

As these capital projects ramp their operational volumes through coming quarters, they will contribute material incremental cash flow to the partnership. Growth capital spending is projected to moderate significantly to a $2.2-2.5 billion range in 2025, creating favorable conditions for free cash flow expansion in 2026. With cash generation accelerating while capital investment moderates, the partnership will accumulate greater resources for investor distributions and share repurchases.

The partnership recently expanded its share repurchase authorization from $2 billion to $5 billion, signaling confidence in capital allocation. More relevantly for dividend-focused investors, Enterprise has raised its unit distribution payments for 27 consecutive years. The most recent annual increase of 3.8% elevated the yield to 6.7%, creating meaningful income for unitholders. Future distribution increases appear well-supported by the forthcoming free cash flow expansion.

Convergence of Growth and Income in 2026

These three dividend-growth equities share common characteristics: established track records of consistent payout expansion, attractive yields ranging from 2.8% to 6.7%, and clearly visible catalysts supporting accelerated distribution growth throughout 2026. Enterprise Products Partners’ transition to a cash-generation phase, Medtronic’s approaching journey toward Dividend King status, and VICI Properties’ portfolio expansion through the Nevada gaming acquisition collectively suggest that dividend expansion will remain a defining feature for these securities in the coming year.