5 Dividend Stocks Yielding 5% or More to Buy Without Hesitation Right Now

Most dividend stocks have a rather unappealing yield these days. The average dividend yield as measured by the S&P 500 is only 1.2%.

However, several companies currently offer much more appealing yields. Here are five high-quality dividend stocks with yields above 5%.

Image source: Verizon.

Clearway Energy

Clearway Energy's (NYSE: CWEN)(NYSE: CWEN.A) dividend yield is right at 5% these days. The clean power producer supports its high-yielding payout with the stable cash flows generated by its wind, solar, and natural gas facilities. Clearway sells the electricity it produces under long-term, fixed-rate power purchase agreements with utilities and large corporations.

The company aims to pay out about 70% of its free cash flow in dividends, retaining the rest to invest in expanding its portfolio. Clearway currently has several investments lined up, giving it significant visibility into its near-term growth prospects for the next few years. It currently expects to grow its cash available for distribution from $2.11 per share this year to at least $2.70 per share by 2027. That supports its plan to increase the dividend from the current annualized rate of $1.81 per share to $1.98 per share by 2027. In the long term, Clearway believes it can increase its cash flow per share to around $3.00 by 2030, supporting continued dividend growth.

Oneok

Oneok (NYSE: OKE) has a 5.9% dividend yield. The diversified midstream giant supports its big-time payout with resilient, fee-based cash flows. The pipeline company has delivered over a quarter-century of dividend stability and growth. While it hasn't increased its payment every year, it has nearly doubled its dividend level over the past decade.

The energy company plans to increase its dividend by 3% to 4% per year for the foreseeable future. Oneok has completed a series of strategic acquisitions over the past few years that should generate hundreds of millions of dollars in cost savings and other synergies in the future. Additionally, the company has several organic expansion projects underway that it expects to complete through the middle of 2028. These growth drivers should provide it with the rising cash flow to support its dividend growth plan.

NNN REIT

NNN REIT (NYSE: NNN) has a 5.9% dividend yield. The real estate investment trust (REIT), which focuses on investing in retail properties secured by triple-net leases (NNN), has raised its payment for 36 straight years. That's the third-longest streak in the REIT sector.

Properties secured by NNN leases generate very stable cash flow because tenants cover all property operating costs, including routine maintenance, real estate taxes, and building insurance. NNN REIT pays out a conservative 70% of its stable cash flow in dividends, allowing it to retain funds for new investments. The landlord establishes relationships with growing retailers, providing it with a steady stream of new investment opportunities. It often acquires properties in sale-leaseback transactions, providing its clients with capital to continue expanding their retail footprints, which frequently become future investment options for the REIT.

Verizon

Verizon's (NYSE: VZ) dividend yields 6.7%. The telecom giant recently extended its dividend growth streak to 19 consecutive years.

The company produces a tremendous amount of recurring cash flow as customers pay their wireless and internet bills. It generated $28 billion in cash flow from operations during the first nine months of this year. Verizon invested $12.3 billion into maintaining and expanding its network, leaving it with $15.8 billion in free cash flow, easily covering the $8.6 billion it paid in dividends.

Verizon expects to produce even more free cash flow next year. It's working to close its $20 billion acquisition of Frontier Communications to expand its fiber footprint. That acquisition will help accelerate the company's strategy to offer more customers both wireless and broadband services, increasing customer loyalty and its profit margins. The telecom company's growing free cash flow puts it in an excellent position to continue raising its high-yielding dividend.

VICI Properties

VICI Properties' (NYSE: VICI) payout yields 6.2%. The REIT focuses on investing in experiential real estate (gaming, hospitality, wellness, entertainment, and leisure destinations). It leases these properties back to operating tenants under very long-term NNN agreements, most of which link rents to inflation. As a result, the landlord generates very stable and steadily rising rental income.

The REIT pays out about 75% of its stable rental income in dividends, retaining the rest to invest in new experiential properties. It buys properties in sale-leaseback transactions, purchases them from third-party investors, and provides funding for developers of experiential real estate. These investments have enabled VICI Properties to grow its payout at a 6.6% compound annual rate since 2018, significantly outpacing the 2.3% compound annual growth rate of other REITs focused on investing in NNN properties. The company recently secured a $1.2 billion sale-leaseback deal to acquire seven properties from Golden Entertainment, which should support continued dividend increases.

High-quality, high-yield dividend stocks

These companies all offer dividend yields of 5% or more backed by rock-solid financial profiles. They have ample flexibility to continue expanding their businesses to support continued dividend increases. With attractive current income streams and more growth ahead, investors can buy these dividend stocks without hesitation right now.

Matt DiLallo has positions in Clearway Energy, Verizon Communications, and Vici Properties and has the following options: short January 2026 $65 puts on Oneok. The Motley Fool recommends Oneok, Verizon Communications, and Vici Properties. The Motley Fool has a disclosure policy.