When it comes to investing, one of the most appealing aspects for many individuals is the potential to generate passive income through dividends. While the S&P 500’s current dividend yield of around 1.4% may not be very attractive for those seeking substantial passive income, there are many individual stocks that offer much higher yields.
In fact, there are several stocks currently paying dividends with yields of 5% or more. These high-yielding stocks have the potential to provide a steady stream of income for investors for years to come. Let’s take a closer look at five stocks with payouts above the 5% level that investors may want to consider adding to their portfolios.
Agree Realty (NYSE: ADC) is a real estate investment trust (REIT) that currently yields 5.3%. What makes Agree Realty particularly attractive for income-focused investors is that it pays a monthly dividend. The company supports its dividend with a portfolio of income-producing retail properties that are leased to financially strong national and super-regional retailers. This stability in rental income has allowed Agree Realty to grow its dividend at a 6.1% annual rate over the last decade.
Clearway Energy (NYSE: CWEN, CWEN.A) offers a 7.7% dividend yield and backs that payout with stable income generated from selling electricity to utilities and large corporate buyers. The company expects to increase its dividend by 5% to 8% annually over the long term, supported by investments in renewable energy projects.
Oneok (NYSE: OKE) is a pipeline giant with a dividend yield of 5.9%. The company supports its payout with steady cash flow from long-term, fee-based contracts. Oneok aims to increase its dividend by 3% to 4% annually, fueled by acquisitions and organic expansion projects.
Vici Properties (NYSE: VICI) pays a 5.7% dividend yield and focuses on gaming and experiential properties leased to high-quality operators. The company has increased its dividend each year since its formation and continues to expand its portfolio through acquisitions and new investments.
Verizon (NYSE: VZ) pays a 6.7% dividend yield, supported by stable cash flows from broadband and wireless services. While Verizon’s dividend growth may not be as high as some other stocks, the company has a track record of increasing its payout for 17 consecutive years.
These five stocks all offer dividend yields above 5% and have the potential to provide a reliable and growing stream of income for investors over the long term. While dividend investing may not always be the most exciting strategy, it can be a powerful way to generate passive income and build wealth over time.
Before investing in any stock, it is important to conduct thorough research and consider your own financial goals and risk tolerance. Additionally, consulting with a financial advisor can help ensure that your investment decisions align with your overall financial plan.
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