Key Points
Hormel is an out-of-favor Dividend King that has just raised its dividend once again.
Enterprise Products Partners' reliable midstream business backs an ultra-high yield.
It can be hard to find good high-yield stocks when the S&P 500 is offering a tiny 1.1% yield. However, it is not impossible. Here's why dividend investors will love high-yielding Hormel Foods(NYSE: HRL) and even higher-yielding Enterprise Products Partners(NYSE: EPD).
Hormel Foods is deeply out of favor
Hormel's 4.7% dividend yield is near the highest level in the company's history. There's a good reason. The company hasn't been hitting on all cylinders for a few years. The impact of post-pandemic inflation and difficulty in pushing through price increases has been a lingering headwind. The board of directors brought back the company's previous CEO to help right the ship.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Image source: Getty Images.
Early results are promising, with organic sales growing year over year in each quarter of 2025. Still, price increases aren't keeping up with cost increases, so earnings are weak. However, the company's business clearly remains on a solid foundation. This is why the company increased the dividend by a token 1%, extending the dividend streak to 60 consecutive years.
All in, Hormel looks like a strong turnaround story involving a reliable Dividend King, or a company that's raised its payout for at least 50 years. If history is any guide, it'll be worth the risk for most dividend investors.
Enterprise Products Partners offers a boring yield in an exciting industry
Enterprise Products Partners operates in the energy sector, which is known for being volatile. However, it is a North American midstream giant, which changes the equation. It basically charges fees for using the energy infrastructure assets it owns, producing reliable cash flows through the entire energy cycle to support its lofty 6.2% yield.
The distribution has been increased for 27 consecutive years, which is basically as long as Enterprise has been publicly traded. And with distributable cash flow covering the distribution by a very comfortable 1.7x, it seems likely that more distribution growth is in store.
The one major caveat with Enterprise is that the distribution yield is likely to make up the lion's share of an investor's return over time. Slow and steady is the name of the game with this income investment. However, that probably won't bother dividend lovers one bit, given the lofty income stream it throws off.
You have high-yield options
If you dig in just a little, you can still find great high-yield stocks like Hormel and Enterprise. Get to know them, and you'll figure out which is the best for your portfolio today.
Should you buy stock in Enterprise Products Partners right now?
Before you buy stock in Enterprise Products Partners, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Enterprise Products Partners wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $443,299!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,136,601!*
Now, it’s worth noting Stock Advisor’s total average return is 914% — a market-crushing outperformance compared to 195% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of February 7, 2026.
Reuben Gregg Brewer has positions in Hormel Foods. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy.
