Top 5 Dividend Paying Stocks With Yields Exceeding 5% — Buy With Conviction Today

Why High-Yield Dividend Paying Stocks Matter Now

The investment landscape has shifted dramatically. While the S&P 500 trades with a mere 1.2% average dividend yield, a compelling alternative exists for income-focused investors. Several premium-grade companies are currently offering payouts exceeding 5%, backed by fortress-like balance sheets and proven cash generation engines. These aren’t speculative bets—they’re battle-tested dividend paying stocks with decades of experience distributing cash to shareholders. Let’s examine five standout candidates that merit serious consideration for your portfolio.

Verizon Communications: The Telecom Income Machine

Verizon (NYSE: VZ) commands a 6.7% dividend yield—among the most compelling in the equity market. The telecommunications colossus has extended its consecutive annual payout raise streak to 19 years, a testament to its reliable cash generation.

The numbers tell a powerful story. During the first nine months of this year, Verizon harvested $28 billion in operating cash flow from its massive customer base paying monthly wireless and broadband bills. After investing $12.3 billion into network infrastructure, the company retained $15.8 billion in free cash flow, comfortably covering the $8.6 billion distributed to shareholders.

The trajectory accelerates forward. Verizon is closing its $20 billion acquisition of Frontier Communications to substantially expand its fiber broadband footprint. This strategic move positions the company to offer an increasing percentage of customers bundled wireless and broadband packages, thereby strengthening customer retention and expanding profit margins. The resulting incremental cash flows create substantial room for continued payout expansion on this already-attractive dividend paying stock.

VICI Properties: Betting On Experience Economics

VICI Properties (NYSE: VICI) yields 6.2%—another exceptional option among high-income dividend paying stocks. This REIT concentrates capital in experiential real estate spanning gaming, hospitality, leisure, and entertainment destinations.

The lease structure underpins stability: VICI deploys ultra-long-term NNN agreements with rental escalators tied to inflation, ensuring rising income streams regardless of economic cycles. The company distributes approximately 75% of its stable rental cash flows, retaining capital for portfolio expansion via three channels: purchasing properties in sale-leaseback arrangements, acquiring existing assets from third-party holders, and financing experiential real estate developers.

This disciplined approach has generated remarkable results. Since 2018, VICI has grown its payout at a 6.6% compound annual rate—substantially outpacing the 2.3% growth rate achieved by comparable NNN-focused REITs. Recently, the company closed a $1.2 billion sale-leaseback transaction with Golden Entertainment, securing seven additional properties. This deal trajectory suggests the dividend paying stock should sustain its growth momentum.

NNN REIT: The Retail Property Play With Staying Power

NNN REIT (NYSE: NNN) distributes yields of 5.9%—the third-longest consecutive annual increase streak in the entire REIT sector at 36 years. This dividend paying stock specializes in retail properties encumbered by triple-net leases, where tenants absorb all operating expenses including maintenance, property taxes, and insurance.

This lease mechanism generates virtually bulletproof cash flows. NNN deploys a conservative payout ratio of 70%, funding new acquisitions with retained earnings. The company cultivates relationships with expanding retail operators, frequently purchasing properties through sale-leaseback transactions that inject growth capital for retail expansion—deals that frequently circle back as future investment opportunities for the REIT. This virtuous cycle has sustained three-and-a-half decades of consecutive annual increases on this dividend paying stock.

Oneok: The Midstream Engine

Oneok (NYSE: OKE) trades with a 5.9% payout yield. The diversified midstream infrastructure operator underpins its substantial distribution with resilient, fee-based revenue streams immune to commodity price volatility. Over 25+ years, Oneok has demonstrated extraordinary dividend stability, nearly doubling its payout level across the past decade despite occasional years without increases.

Going forward, Oneok projects 3%-4% annual dividend growth. The company has executed strategic acquisitions generating hundreds of millions in cost synergies, while simultaneously building organic expansion projects scheduled for completion through mid-2028. These parallel growth vectors provide ascending cash flows to bankroll accelerating payouts on this high-yield dividend paying stock.

Clearway Energy: Clean Power, Clean Yields

Clearway Energy (NYSE: CWEN) (NYSE: CWEN.A) yields precisely 5%. The clean energy producer harvests stable cash flows from wind, solar, and natural gas generation assets, with electricity sales locked into long-term fixed-rate contracts with utilities and institutional clients.

Clearway targets a 70% payout ratio, reinvesting the remainder into portfolio expansion. The company provides concrete visibility: it expects to grow cash available for distribution from $2.11 per share this year to minimum $2.70 per share by 2027, supporting planned dividend elevation from $1.81 to $1.98 per share over the same window. Long-term ambitions reach $3.00 per share by 2030. This dividend paying stock demonstrates clear multi-year growth pathways.

The Income Investor’s Blueprint

These five dividend paying stocks all deliver 5%+ yields underpinned by durable business models and strong financial positions. Each maintains substantial operational flexibility to expand across coming years, supporting escalating distributions. Whether seeking immediate income or total return through growth plus dividends, this roster of high-yield securities offers compelling entry points for patient capital today.