Why These 5 Dividend Stocks Yielding 5%+ Are Worth Your Attention Right Now

The Dividend Yield Landscape Has Shifted

When you examine the broader market through the lens of dividend yield, the picture becomes clear: most stocks aren’t delivering meaningful income. The S&P 500 currently offers just 1.2% in average dividend yield, leaving income-focused investors searching for alternatives. Yet a select group of companies are breaking this mold, providing yields that substantially exceed this baseline. Understanding what separates these high-yielding performers from the rest reveals an interesting pattern—they combine attractive current payouts with the financial strength to sustain and grow them.

Telecom Infrastructure Delivers Substantial Returns

Verizon stands out with a 6.7% dividend yield, supported by its position as a telecom giant generating substantial recurring revenue. The company’s recent achievement of 19 consecutive years of dividend growth demonstrates management’s commitment to shareholders. During the first nine months of this year, Verizon generated $28 billion from operating activities. After allocating $12.3 billion toward network maintenance and expansion, the company retained $15.8 billion in free cash flow—more than double what it distributed in dividends ($8.6 billion).

The Frontier Communications acquisition worth $20 billion represents a strategic expansion of Verizon’s fiber infrastructure, designed to enhance its dual-service offering of wireless and broadband. This combination typically improves customer retention and margin expansion. The company’s expanding free cash flow trajectory positions it favorably for continued dividend increases.

Energy Infrastructure and Real Estate Models

Oneok, a diversified midstream energy company, provides a 5.9% dividend yield through fee-based revenue streams that remain relatively resilient across economic cycles. Its 25+ year track record of dividend stability, combined with an approximate doubling of dividend levels over the past decade, reflects consistent shareholder value creation. Management has committed to 3-4% annual dividend increases going forward, supported by strategic acquisitions completed in recent years that should generate hundreds of millions in cost synergies. Several organic expansion projects scheduled through mid-2028 should provide additional cash flow support.

Clearway Energy, yielding 5%, operates wind, solar, and natural gas facilities. The company generates stable cash through long-term, fixed-rate power purchase agreements with utilities and corporations. By targeting a 70% payout ratio of free cash flow, Clearway retains capital for portfolio expansion. The company projects growth in cash available for distribution from $2.11 per share currently to at least $2.70 per share by 2027, supporting dividend growth from the current $1.81 annualized rate to $1.98 by 2027. Longer-term targets suggest per-share cash flow reaching $3.00 by 2030.

VICI Properties, a REIT focused on experiential real estate (gaming, hospitality, entertainment, wellness), offers a 6.2% yield. Its properties operate under long-term NNN agreements with rents linked to inflation, creating naturally escalating rental income. By retaining approximately 25% of rental income for reinvestment, the company has grown its dividend at a 6.6% compound annual rate since 2018—substantially outpacing the 2.3% growth rate of comparable NNN-focused REITs. A recently secured $1.2 billion sale-leaseback transaction with Golden Entertainment for seven properties should sustain this momentum.

Retail Real Estate Stability

NNN REIT, yielding 5.9%, has achieved 36 consecutive years of dividend increases—the third-longest streak within the REIT sector. Its focus on retail properties secured by triple-net leases creates predictable cash flows since tenants absorb all operating costs. By maintaining a conservative 70% payout ratio, the company retains flexibility for acquisitions. Its relationships with expanding retailers generate ongoing investment opportunities, particularly through sale-leaseback transactions that provide capital for retail expansion while creating future acquisition opportunities for the REIT.

What Unites These Dividend Stocks

These five companies share fundamental characteristics: they operate in sectors generating stable, recurring cash flows; they maintain financial discipline through conservative payout ratios; and they possess documented strategies for dividend growth. Whether through infrastructure investments, operational synergies, or real estate expansion, each company has articulated pathways for increasing shareholder distributions. For investors seeking meaningful dividend yield backed by financial substance and growth visibility, this group warrants serious consideration.