With the Federal Reserve now signaling at least one rate increase in 2026, higher borrowing costs and pressure on valuation multiples are back in focus. For income investors, that can put more attention on stocks that already pay higher dividends and carry moderate risk profiles, rather than relying on price gains alone. This article pulls from a High Dividend Yield Stocks screener built around the Fed’s latest stance and related inflation worries, and will walk through 3 stocks that appear positively exposed to this news backdrop, helping you decide whether they deserve a closer look for your income portfolio.

Verizon Communications (VZ)

Overview: Verizon Communications is a large US telecom company that provides mobile, broadband, and related connectivity services to consumers, businesses, and government customers through its Verizon and TracFone brands, as well as through fiber and fixed wireless networks.

Operations: Verizon generates about US$107.6b in revenue from its Consumer segment and US$29.2b from its Business segment, with all reported revenue of roughly US$139.1b coming from the United States.

Market Cap: US$176.8b

Income investors are paying close attention to Verizon Communications because it combines a high dividend yield of around 6.7% with a business anchored in essential connectivity, from nationwide wireless to growing fixed wireless and fiber broadband. The stock trades on a lower P/E than many telecom peers, and analysts see upside to their consensus price target, even as higher rates pressure market valuations. At the same time, Verizon carries a sizeable debt load, faces fresh competition from players like Starlink, and has seen insider selling and higher executive pay, which raise governance and balance sheet questions that are important for long term holders to consider.

Verizon Communications combines a 6.7% yield, essential connectivity and a lower P/E that could be masking a more complex story. Get the full picture with an 4 key rewards and 2 important warning signs.

National Fuel Gas (NFG)

Overview: National Fuel Gas is a diversified US energy company that produces natural gas, operates pipelines and storage, and runs regulated gas utilities that deliver fuel to homes and businesses in New York and Pennsylvania.

Operations: National Fuel Gas generates about US$1.30b from Integrated Upstream and Gathering, US$930.5m from its Utility segment, and US$429.8m from Pipeline and Storage, with total revenue of roughly US$2.51b coming from the United States after corporate eliminations.

Market Cap: US$7.34b

National Fuel Gas stands out in a higher rate setting because it combines a long history of dividend growth, including 56 consecutive years of increases, with a low P/E multiple relative to the wider US market and gas utilities peers. The business is anchored by regulated utility and pipeline operations, a recent US$2.62b Ohio utility acquisition that is expected to roughly double its regulated rate base, and upstream assets supported by hedging that aims to smooth commodity swings. These features can appeal to some investors if valuations across the market come under pressure. At the same time, investors need to weigh the company’s heavy use of debt funding and long term decarbonization and electrification policies that could test the value of gas infrastructure over time.

National Fuel Gas looks like a classic income story, but the mix of regulated assets, the new Ohio deal, and upstream exposure could be masking something more important. It is worth reading the 5 key rewards and 1 important warning sign.

UGI (UGI)

Overview: UGI is an energy infrastructure and utilities company that supplies propane, liquefied petroleum gas, natural gas, and electricity to households and businesses in the United States and internationally, while also providing storage, transport, and logistics services through its Utilities, Midstream & Marketing, UGI International, and AmeriGas Propane segments.

Operations: UGI generates about US$2.0b from Utilities, US$2.2b from AmeriGas Propane, US$2.0b from UGI International, and US$1.7b from Midstream & Marketing, with eliminations and adjustments taking total reported revenue lower.

Market Cap: US$7.41b

Income investors looking for defensive ideas while the Fed talks up higher-for-longer rates may find UGI interesting because it combines a 4.4% dividend yield, utility-like cash flows, and a P/E that sits below broad market and gas utility averages. At the same time, management is pruning assets and reinvesting in regulated and energy services businesses. Recent divestitures, Pennsylvania rate cases, and projects in renewable natural gas and distributed energy are aimed at improving earnings quality and free cash flow. However, weak free cash flow coverage of the dividend, reliance on external borrowing, and structural headwinds to fossil fuels keep risk firmly on the table. The latest earnings miss, asset sale plans, and partnership announcements only add more layers that investors will want to unpack before deciding how UGI fits in a high-yield portfolio.

UGI’s lower P/E, utility cash flows and energy transition projects could be masking a far more interesting risk reward trade off. Get the full story in the 5 key rewards and 2 important warning signs (1 is major!)

The three stocks highlighted here are just a starting point. The full High Dividend Yield Stocks screener surfaces 25 more companies that pair relatively high dividend scores with moderate risk and solid financials through the High Dividend Yield Stocks screener. Use Simply Wall St to identify and analyze the specific catalysts, balance sheet strength and dividend narratives that matter to you so you can focus on the highest conviction income ideas for your portfolio.

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If Verizon Communications or any of these companies sound like a great opportunity, register for FREE with Simply Wall St and add your companies to a Watchlist to monitor the share price against the fair value the ideal entry point. Once you've made your move, manage your holdings with our Portfolio Command Center that filters out the noise to deliver only the most critical, actionable updates. Throughout your journey, our Community allows you to filter the best ideas from thousands of investor perspectives. By uncovering hidden catalysts and risks early, you'll accelerate your decision-making and stay one step ahead of the market.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.