Terrifying reason Trump killed the U.S. penny? (From Paradigm Press)

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Quick Look

  • Market rotation is boosting demand for high-yield dividend stocks as investors shift from growth-heavy tech names to value-oriented companies with reliable cash flow.
  • Omega Healthcare, Perrigo, and Omnicom offer yields well above the SPHD ETF benchmark, making them attractive options for income-focused portfolios in a lower-rate environment.
  • Strong institutional ownership and durable business models support dividend reliability, helping investors balance income generation with defensive positioning during market volatility.

 

Investors aren’t putting cash under their mattresses, but they’re certainly looking to take some risk off the table. This means rotation out of high-growth technology stocks and looking for value.

One way to find that value is with dividend-paying stocks. The key attraction is the “why” behind these dividends. Companies that pay high-yield dividends have steady cash flows. That means investors can count on these stocks for reliable income.

This is an important strategy to defend against market volatility, but it can also help income investors generate yield when interest rates are moving lower. The pace of future rate cuts isn’t clear, but there’s a broad consensus that the next move (or moves) will be lower.

Critics of this strategy will say that companies that pay a high-yield dividend can be dividend traps. That means the company has no better use for its cash than paying it out as a dividend. That can be true, but in this case, investors are prioritizing income above growth. So the key is the reliability of that dividend.

For investors who may find this strategy attractive, here are three high-yield names to consider. For this article, high yield is defined as a yield above an exchange-traded fund (ETF) like the Invesco S&P 500 High Dividend Low Volatility ETF (NYSEARCA: SPHD). This fund includes 50 of the least volatile, highest-dividend-yielding S&P 500 stocks. The yield is 3.82% as of Feb. 18.


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A Demographic Tailwind Supports This Healthcare REIT

Real estate investment trusts (REITs) were out of fashion during the AI-fueled tech boom in 2024 and 2025. That's changing in 2026 as income investors seek yield. The business model of a REIT means that approximately 90% of the company’s profits have to be distributed to shareholders, typically in the form of a dividend.

That’s the foundation for Omega Healthcare Inc. (NYSE: OHI). The company’s core business is acquiring and leasing long-term care properties, such as skilled nursing facilities (SNFs) and assisted living communities, under net-lease agreements. OHI has 1,024 facilities in 42 states and the District of Columbia.

Omega Healthcare is a play on the aging of America, which is expected to drive a multi-decade increase in demand for SNFs. That's already happening. In the company’s December 2025 investor presentation, Omega cited that more patients are discharged to SNFs than any other type of care setting.

Furthermore, bringing new supply online will be limited by regulatory restrictions. That creates a case for both growth and income. OHI stock is up 29% in the last 12 months. It also pays a dividend with a 5.7% yield and an annual payout of $2.68 per share.

Deep Value Appeal With One of the Market’s Highest Yields

Perrigo Company (NYSE: PRGO) presents a different option for investors seeking high-yield dividend stocks in the medical sector. Perrigo is a global healthcare supplier specializing in over-the-counter (OTC) and self-care products. The company also handles generic prescription drugs and active pharmaceutical ingredients.

The PRGO stock chart has looked like a disaster for the last five years, dropping more than 65%.

However, the stock may be falling into the “so bad it’s good” category. Specifically, institutional ownership remains over 95%, and buyers have outnumbered sellers by 2:1 over the last 12 months and by almost 4:1 in Q4 2025.

That suggests that big money sees an opportunity. Supporting that argument, PRGO stock is up 9% in the past three months.

Perrigo pays the highest yield of all the companies on this list at 7.9%. That may be enough to keep investors interested while the company navigates a class-action lawsuit related to its acquisition of Nestlé’s infant formula plant.


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A Steady Cash Generator Leveraging AI-Driven Marketing Demand

Omnicom Group Inc. (NYSE: OMC) is a global marketing and corporate communications holding company. It’s essentially the parent company of some of the world’s largest advertising agencies. The company operates in over 70 countries and serves over 5,000 clients.

This is a play on artificial intelligence (AI) and its mission to ‘help brands grow with greater clarity, speed, and measurable impact in the age of influence.”

OMC stock has been chopping around for the last five years with investors getting only 4.5% share price growth in that time. However, the dividend is what makes the stock more attractive. The yield of 4.5% is the lowest of this group. But investors are getting an attractive $3.29 payout per share.

Institutions loaded up on the stock in the last quarter, perhaps in anticipation of the Super Bowl ad blitz.

But overall institutional ownership remains around 91%, indicating that Omnicom is a name to watch as income investors seek value where they can find it.

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