Unwrapping Reliable Income This Christmas

Christmas Eve is a moment of pause. The shopping is mostly done, the noise slows, and we reflect on what truly matters before the celebrations begin. It’s a time defined by traditions, the things we rely on year after year because they bring comfort, stability, and familiarity.

Investing is no different. Headlines change, and markets tend to obsess over what’s new, flashy, or disruptive. But long-term success is often built on returning to what has already proven dependable. Businesses that keep operating, keep paying, and keep delivering regardless of the economic backdrop tend to fade into the background—until you realize how valuable that consistency really is.

In that spirit, we will now discuss two time-tested companies with investment-grade balance sheets that have grown their dividends through numerous headwinds and market pessimism and are well-positioned to keep delivering steady income to shareholders through the next market kerfuffle. Let’s dive in.

Pick 1: NNN – Yield 6.1%

NNN REIT Inc (NNN) is a retail-focused net-lease REIT that ended Q3 with 3,697 properties leased out to over 400 tenants, with a weighted-average lease term of 10.1 years, and an occupancy level of 97.5%. It is noteworthy that NNN’s occupancy levels never fell below 96.4% in the past 20 years, and this period included the absolute worst headwinds for real estate, like the Great Financial Crisis and the COVID-19 pandemic.

NNN continues to acquire properties at a much higher cap rate than the ones it disposes of, providing a natural means to grow NOI. The company has raised its acquisition and disposition volume for the year, and expects between $850 - $950 million in acquisitions and $170-$200 million in dispositions.

NNN has delivered annual dividend raises to shareholders for 36 years, and its current $0.60/share quarterly payout calculates to a 6.1% annualized yield. The REIT expects AFFO/share to be between $3.41-$3.45 for 2025, placing its annualized yield at a ~70% payout ratio at the midpoint.

Pick 2: VZ – Yield 6.9%

Verizon Communications (VZ) is the largest telecom operator in North America, with the largest consumer market share, and serving 99% of Fortune 500 companies. Telecom operators experience inelastic demand, but need to make massive and frequent CapEx to maintain and upgrade their infrastructure. After all, the owner of 2G spectrum licenses and associated infrastructure isn’t going to be making any money today. While the peak CapEx years come with strains on profitability, VZ continued to outnumber its dividends through periods of peak CapEx (2022). 

CapEx is expected to continue dropping in 2025 and beyond, resulting in growing FCF coverage for the dividend. VZ boasts 19 years of annual dividend raises, and its current quarterly payout calculates to a 6.9% QDI yield.

The company maintained its FY 2025 guidance and expects 2.5% to 3.5% EBITDA growth and 1-3% EPS growth for the year. VZ expects FCF between $19.5-$20.5 billion, placing its annual dividend at a modest 57% payout ratio.

VZ continues to produce massive amounts of FCF, and we expect the numbers in 2026 to be significantly higher due to lower CapEx. VZ’s new CEO reaffirmed the company’s “iron clad” commitment to its dividend.

Conclusion

At High Dividend Opportunities, we focus on income that doesn’t need perfect conditions to perform. Income that arrives through recessions, rate cycles, and shifting market narratives. Just like holiday traditions, these income streams don’t need to surprise us; they simply need to show up.

This Christmas Eve, we’re highlighting two such income opportunities that reflect exactly that philosophy: dependable cash flow, durable business models, and dividends that investors can rely on while others chase uncertainty. When the goal is long-term income, boring can be beautiful—and consistency becomes the real gift.

Merry Christmas, and Happy Holidays!