5 Dividend Stocks Yielding Over 5% to Buy Right Now

This year has seen a notable cooling in the stock market, with most major market indexes experiencing declines of around 10% from their peak levels. However, in the midst of this downturn lies a potential advantage for investors: dividend yields often rise as stock prices fall. This presents a unique opportunity for investors looking for income.

With many stocks now offering higher yields, we present five high-quality dividend stocks that currently yield over 5%. These stocks stand out as excellent choices for securing a reliable income stream.

Brookfield Renewable

Brookfield Renewable (BEPC -0.35%) (BEP -0.26%) provides an attractive dividend yield of 5.2%. This prominent renewable energy producer is grounded in a sustainable financial model.

The company earns stable cash flow by supplying clean energy to utilities and large corporations through long-term contracts. Many of these agreements are linked to inflation, ensuring consistent income growth.

Moreover, Brookfield is bolstered by development projects and successful acquisitions, maintaining a robust backlog of potential projects. It anticipates that these factors will drive its cash flow per share to grow at an impressive annual rate of over 10% over the next decade.

This strong outlook supports Brookfield's plan to increase its dividend by 5% to 9% each year. This year marks the company’s 14th consecutive year of delivering at least this level of dividend growth.

Enbridge

Enbridge (ENB 0.66%) currently offers a substantial dividend yield of 6.3%. The Canadian company, known for its pipeline and utility services, backs this strong payout with a solid financial structure.

Approximately 98% of Enbridge's earnings derive from stable, contracted assets, allowing for predictable cash flow. The company has met its financial guidance for 19 years straight, reflecting its reliability.

Enbridge maintains a prudent payout ratio of 60% to 70% of its stable cash flow for dividends, which allows it to retain billions for expansion projects. It possesses a sizeable backlog of capital projects expected to contribute to growth through 2029.

The company anticipates cash flow per share growth of about 3% annually through 2026, followed by 5% growth thereafter. Such forecasts imply a similar trajectory for dividend increases, extending its growth streak to 30 consecutive years by 2025.

NNN REIT

NNN REIT (NNN 1.22%) is another solid investment, currently yielding 5.5%. This REIT generates stable cash flow from rental income that supports its dividend payments.

NNN REIT owns single-tenant retail properties secured by long-term net leases, with an average of 10 years remaining. This lease structure mandates that tenants handle all operating costs, including routine maintenance, insurance, and taxes.

Maintaining a conservative dividend payout ratio allows NNN REIT to reinvest in additional income-generating retail properties. The REIT has consistently grown its portfolio and cash flow, resulting in 35 consecutive years of dividend increases—one of the longest streaks in the sector.

T. Rowe Price

T. Rowe Price Group (TROW 2.50%) also offers a compelling 5.5% yield. As an asset management company, it generates steady income from advisory fees.

The company’s management fees grow as its assets under management (AUM) increase, achieving $1.6 trillion last year—an 11.2% rise. T. Rowe Price is expanding its suite of exchange-traded funds, currently with 17 funds amounting to nearly $8 billion in AUM, along with innovative retirement products and alternative investment options.

This growth trajectory has enabled T. Rowe Price to announce its 39th consecutive annual dividend increase earlier this year, showcasing its commitment to returning value to shareholders.

Verizon

Verizon Communications (VZ -0.32%) provides a robust dividend yield of 6.4%. This telecom leader generates significant, stable cash flow from customer payments for wireless and internet services.

In the previous year, Verizon produced $19.8 billion in free cash flow after substantial capital investments aimed at expanding and maintaining its networks. This free cash flow comfortably covered the $11.2 billion utilized for dividends.

The company’s ongoing investments in next-generation 5G and fiber networks are set to enhance both wireless revenue and earnings. Additionally, Verizon plans to acquire Frontier Communications for $20 billion, further strengthening its fiber infrastructure.

These initiatives position Verizon for continued dividend growth, having successfully raised its dividend for 18 consecutive years—the longest active streak in the telecommunications sector in the U.S.

Conclusion

In conclusion, Brookfield Renewable, Enbridge, NNN REIT, T. Rowe Price, and Verizon are high-quality stocks currently offering dividend yields above 5%. Each company demonstrates a reliable history of increasing its financial payouts, projecting continued growth in dividends. These stocks represent excellent opportunities for investors seeking steady and rising income streams in the current market environment.

dividends, income, stocks