Here Are My Top 3 High-Yield Dividend Stocks to Buy Now

My portfolio is chock-full of dividend stocks. Many of them offer high yields. By the way, I consider a yield as high if it's more than two times greater than the yield of the S&P 500 (SNPINDEX: ^GSPC). This approach works better for me than going with a fixed percentage.

What are my top high-yield dividend stocks to buy now? Here's why Enbridge (NYSE: ENB), Enterprise Products Partners (NYSE: EPD), and Verizon Communications (NYSE: VZ) stand out.

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1. Enbridge

Enbridge pays a forward dividend yield of 4.9%, almost five times higher than the S&P 500's yield. In addition to this juicy yield, the company has increased its dividend for an impressive 31 consecutive years. Its distributable cash flow payout ratio of between 60% and 70% is also healthy.

Great dividends are the byproduct of great underlying businesses. Enbridge is a leader in the midstream energy industry. It operates the world's oil and liquids pipeline network, serving more than 75% of North American refineries. The company's pipelines also transport around 20% of all natural gas consumed in North America.

But Enbridge isn't only a pipeline stock. It ranks as the largest natural gas utility in North America by volume. The company has also expanded its renewable energy operations and now provides renewable power to top customers, including AT&T (NYSE: T), Meta Platforms (NASDAQ: META), and Toyota (NYSE: TM).

Enbridge has clear visibility into growth through the end of the decade. North American liquid natural gas (LNG) demand is expected to increase to over 30 billion cubic feet per day by 2030, while gas demand is projected to increase to roughly 28 billion cubic feet per day. Management has identified around $50 billion of growth opportunities over the next four years to meet this rising demand.

2. Enterprise Products Partners

Enterprise Products Partners offers an even higher distribution yield of 5.6%. The limited partnership (LP) has increased its distribution for 27 consecutive years. It appears to be in great shape to keep the streak going, with a payout ratio of 57% based on adjusted cash flow from operations.

Like Enbridge, Enterprise Products Partners is a key player in the North American midstream energy market. It operates over 50,000 miles of pipeline that transport natural gas liquids (NGLs), crude oil, natural gas, petrochemicals, and other refined products.

I really like the LP's stability and financial strength. Enterprise Products Partners' solid balance sheet earned it the highest credit rating in the midstream industry. The company has generated steady cash flow over the last 20 years, even during challenging periods such as the 2008 to 2009 financial crisis and the COVID-19 pandemic.

Enterprise's growth prospects look good, too. Data centers running artificial intelligence (AI) applications are providing a tailwind for natural gas in the U.S. The demand for LNG in Asia and Europe is expected to grow by around 30% by 2030.

3. Verizon Communications

Verizon Communications currently pays a forward dividend yield of 5.9%. The company has increased its dividend for 19 consecutive years. Its dividend payout ratio is a comfortable 67%.

Of these three high-yield dividend stocks, Verizon is probably the most familiar to investors. Verizon ranks as the world's sixth-largest communications services company by market cap. It provides broadband and wireless services to millions of consumers and businesses.

I'm confident that Verizon can continue to pay its juicy dividends. Why? The company is generating strong and growing free cash flow. Verizon expects free cash flow of $21.5 billion in full-year 2026, up 7% year over year and reflecting the highest level since 2020.

I also think that Verizon's wireless services will enjoy strong demand for years to come. By 2030, 6G networks should be widely available throughout much of the U.S. I predict an explosion in new capabilities that will directly benefit Verizon.

Keith Speights has positions in Enbridge, Enterprise Products Partners, Meta Platforms, and Verizon Communications. The Motley Fool has positions in and recommends Enbridge and Meta Platforms. The Motley Fool recommends Enterprise Products Partners and Verizon Communications. The Motley Fool has a disclosure policy.