5 Dividend Stocks Yielding 5% or More to Buy Right Now for Passive Income

The stock market has slumped this year due to the war with Iran and concerns about economic growth. One silver lining of falling stock prices is that dividend yields are rising. That makes now a great time to lock in some lucrative income streams.

Here are five high-quality dividend stocks with yields above 5% to buy right now for durable passive income.

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EPR Properties

EPR Properties (NYSE: EPR) currently yields 7.1%. The real estate investment trust (REIT) invests in experiential properties such as theaters, golf resorts, and theme parks. It leases these properties to operating tenants under long-term, primarily triple-net leases. Those leases generate very stable rental income because tenants cover all property operating costs, including routine maintenance, real estate taxes, and building insurance.

The REIT has a conservative dividend payout ratio (around 70% of its stable cash flow), giving it a comfortable cushion while allowing it to retain cash to fund new income-generating experiential property investments. EPR also has a strong balance sheet, giving it additional flexibility to make new investments. The landlord invested $113 million into a portfolio of five golf courses and a water park late last year. Meanwhile, it bought seven regional theme parks from Six Flags for $342 million earlier this year. These investments enable the REIT to grow its monthly dividend. It recently hiked its payout by another 5.1%.

Enbridge

Enbridge's (NYSE: ENB) payout currently yields 5.3%. The Canadian pipeline and utility operator has increased its dividend for 31 consecutive years (in Canadian dollars). It generates very stable cash flow, as long-term contracts and government-regulated rate structures account for 98% of its earnings.

The energy infrastructure company aims to pay out between 60% to 70% of its stable cash flow in dividends. It also has a strong balance sheet. That provides it with billions of dollars in annual investment capacity. Enbridge currently has a multi-billion-dollar backlog of commercially secured expansion projects under construction that should enter service through the end of the decade. That gives it lots of visibility into its future growth. Enbridge expects to grow its cash flow per share at a 3% compound annual rate through this year and by 5% thereafter. That should support annual dividend growth within that range.

Realty Income

Realty Income (NYSE: O) has a 5.3% dividend yield. It's also a REIT and pays a monthly dividend. It has a very diversified portfolio. The company invests in retail, industrial, gaming, and other properties across North America and Europe, secured by long-term net leases.

The REIT pays out about 75% of its stable cash flow in dividends and has a top-tier balance sheet. That enables it to invest in growing its portfolio. Realty Income plans to deploy $8 billion into new properties this year. These investments should support continued dividend increases. Realty Income has raised its dividend 134 times since its public market listing in 1994, including for the last 114 consecutive quarters. The REIT has grown its payout at a 4.2% compound annual rate over the last three decades.

T. Rowe Price

T. Rowe Price (NASDAQ: TROW) currently offers a 6% dividend yield. The global investment management firm increased its dividend by 2.4% earlier this year, extending its growth streak to 40 consecutive years.

The company manages $1.8 trillion in client assets, two-thirds of which are retirement assets. It generates steady and rising management and advisory fees as its assets under management grow. T. Rowe Price also routinely launches new financial products to meet its clients' evolving needs. It launched its first emerging markets equity ETF earlier this year, expanding its lineup to 32 funds. It also launched a multi-strategy credit interval fund to provide wealthy clients with an alternative investment in the credit sector. The investment firm's continued growth should support its steadily rising dividend.

Verizon

Verizon's (NYSE: VZ) dividend yields 5.7%. The mobile and broadband company generates recurring revenue as customers pay their cellphone and internet bills.

Last year, Verizon generated $20.1 billion in free cash flow after capital expenditures, easily covering the $11.5 billion it paid in dividends. That enabled it to retain significant surplus cash to strengthen its already rock-solid balance sheet ahead of its $20 billion acquisition of Frontier Communications. This year, the company expects to generate over $21.5 billion in free cash, boosted by closing the Frontier deal and its continued investments to expand its 5G and fiber networks. The company's growing free cash flow should support continued dividend increases. Verizon has hiked its payout for 19 years in a row.

Excellent income stocks

Enbridge, EPR Properties, Realty Income, T. Rowe Price, and Verizon all currently offer dividends with yields above 5%. They back those payouts with strong financial profiles. All five companies should continue increasing their high-yielding dividends, making them ideal passive-income stocks to buy and hold right now.

Matt DiLallo has positions in EPR Properties, Enbridge, Realty Income, T. Rowe Price Group, and Verizon Communications. The Motley Fool has positions in and recommends EPR Properties, Enbridge, Realty Income, Six Flags Entertainment, and T. Rowe Price Group. The Motley Fool recommends Verizon Communications. The Motley Fool has a disclosure policy.