5 Dividend Stocks Yielding Over 5% to Buy Right Now

This year, stock prices have notably declined, with major market indexes down about 10% from their recent highs. However, there is a positive aspect to this market sell-off: as stock prices drop, dividend yields tend to rise. This means that many stocks are now presenting higher dividend yields than before.

Here are five quality dividend stocks that currently yield over 5%, making them attractive options for those looking for reliable income streams.

Brookfield Renewable

Brookfield Renewable (BEPC) offers a dividend yield of 5.2%. This company is a top player in the global renewable energy sector and provides sustainable payouts based on stable cash flow from long-term contracts with utilities and large businesses.

These contracts often have rates tied to inflation, ensuring consistent income growth. Moreover, Brookfield benefits from development projects and acquisitions, maintaining a robust pipeline of future growth. The company anticipates cash flow per share to grow over 10% each year in the coming decade, supporting its goal to increase dividends by 5% to 9% annually. Notably, this year marks the 14th consecutive year of at least 5% dividend growth.

Enbridge

Enbridge (ENB) boasts a 6.3% dividend yield. This Canadian company operates pipelines and utilities, with 98% of its earnings coming from steady, contracted assets. It has maintained its financial guidance for 19 consecutive years, highlighting its reliability.

The company pays out a prudent 60% to 70% of its stable cash flow as dividends, allowing them to retain capital for expansion projects. Enbridge has a significant backlog of planned projects through 2029, enhancing its growth visibility. It expects cash flow per share to grow by around 3% annually until 2026 and by 5% thereafter, allowing for continuous dividend growth, which could extend its pay-out increase streak to 30 years by 2025.

NNN REIT

NNN REIT (NNN) currently has a dividend yield of 5.5%. This real estate investment trust (REIT) generates steady income through rental payments from single-tenant retail properties with long-term leases.

With tenants responsible for operational costs, the REIT maintains a conservative payout of its stable cash flow, which enables reinvestment in additional properties. NNN REIT has consistently increased its dividend for 35 years, a noteworthy achievement in the REIT sector.

T. Rowe Price

T. Rowe Price Group (TROW) also offers a 5.5% dividend yield. This asset management firm benefits from consistent income generated through advisory fees.

Its revenue grows with the increase in assets under management, which reached $1.6 trillion last year, reflecting an 11.2% growth. The company is expanding its product offerings, including exchange-traded funds and innovative retirement solutions. Due to its growing assets and income, T. Rowe Price successfully completed its 39th consecutive annual dividend increase this year.

Verizon

Verizon Communications (VZ) offers a 6.4% dividend yield. This telecom giant generates significant cash flow as customers consistently pay for wireless and internet services.

Last year, Verizon reported $19.8 billion in free cash flow, well covering its $11.2 billion dividend payout. The company is investing heavily in building its 5G and fiber networks, enhancing revenue and earnings. Additionally, Verizon plans to acquire Frontier Communications in a $20 billion deal to expand its network even further.

These growth initiatives position Verizon to continue its dividend increases, which it has done for 18 consecutive years, the longest current streak in its industry sector.

Conclusion

Brookfield Renewable, Enbridge, NNN REIT, T. Rowe Price, and Verizon are all compelling options for investors seeking dividend stocks with yields over 5%. Each of these companies has a strong track record of increasing their dividends, which is likely to continue in the future. They represent solid investment choices for reliable and growing income streams.

Stocks, Dividends, Investing