Dividends: Not Your Grandma’s Income Play

Look, let’s be real. “Dividend stocks” sounds like something your Uncle Jerry talks about at Thanksgiving, right after explaining his cryptocurrency scheme. But in a market that’s currently doing its best impression of a caffeinated squirrel, a little income can be… soothing. It’s like financial self-care. And honestly, after the last few years, we all deserve a little self-care.

So, we’ve been digging around, and found a couple of dividend plays that aren’t just beige. These aren’t your typical “buy and hold forever” stocks. They’re a little…quirky. One’s only recently started consistently sharing the wealth, and the other pays monthly – which, let’s face it, is just aggressively quarterly. But both are worth a look, if you’re tired of watching your portfolio do the Macarena when you’d prefer it just…stood still.

1. Fidelity National Information Services

Fidelity National Information Services (FIS +0.36%) is basically the plumbing of the financial world. They move money around. It’s not glamorous, but it’s essential. And when something is essential, people tend to keep paying for it, even when TikTok is demanding their attention. They have a decent moat, which, in business terms, means it’s really hard for someone to come along and build a better plumbing system. Switching costs are high, because nobody wants to rewrite all the code. Trust me.

Now, FIS had a bit of a rough patch. Five years ago, their stock price was doing the tango with disaster. But it wasn’t because they were losing business. It was because they made a $43 billion bet on Worldpay, a merchant acquirer, and it turned out to be less “strategic acquisition” and more “expensive mistake.” It’s like buying a timeshare. You think it’s a good idea at the time, and then you realize you’re stuck with it forever.

Thankfully, they’ve finally gotten rid of the Worldpay albatross and picked up the Issuer Solutions business from Global Payments. This is a better fit because it focuses on debit payments, which is where FIS shines. It’s like finally admitting you’re more of a “coffee in the morning” person than a “fancy cocktail at midnight” person.

Analysts are cautiously optimistic, predicting a potential 67% return over the next year. And they recently boosted their dividend by 10% to $0.44 per share, yielding 3.62%. FIS hasn’t always been the most reliable dividend payer, but they seem to have learned their lesson. The Worldpay saga is over, and they’re focused on what they do best. Which, again, is plumbing. It’s not sexy, but it pays the bills.

2. Main Street Capital

Now, let’s talk about Main Street Capital (MAIN +0.12%). These guys are different. They pay a monthly dividend. Yes, monthly. It’s like getting a tiny paycheck every week. It’s a psychological win, even if the actual amount isn’t going to fund your early retirement. Only about 80 stocks do this, so they’re already ahead of the curve.

Main Street Capital is a Business Development Company (BDC), which basically means they get tax breaks if they give almost all their income to shareholders. It’s a clever system. As BDCs go, they’re one of the best for dividends. It’s like finding a loophole in the tax code that actually benefits you. It almost feels…legal.

They’ll be paying out $0.26 per share in early March, which is the same as February. That works out to a yield of 7.20%. Plus, they’ve been reliably increasing their annual payout for 18 years straight. They also distribute supplemental dividends four times a year, because apparently, one dividend a month wasn’t enough. It’s like they’re trying to compensate for something.

And their stock has been a solid performer, with a five-year annualized return of 11%. It’s not going to make you a billionaire, but it’s a respectable return in a world where most stocks are just trying to survive. It’s the financial equivalent of a sensible pair of shoes. Not exciting, but reliable.

2026-02-23 06:12

1. Fidelity National Information Services

2. Main Street Capital

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