3 High-Yield Dividend Stocks Paying 5% or More That Are Worth Buying Now

Many investors often associate high-yield dividend stocks with high risk. This concern makes sense, given how many high yielders end up turning into "yield traps," where a company cuts or suspends dividends, and/or the dividend stays as is, but a drop in the stock price more than counters the steady cash returns.

However, among stocks in this category, a few stand out for their track record of dividend growth. These include Altria Group (NYSE: MO), Realty Income (NYSE: O), and Pfizer (NYSE: PFE). Alongside high yields, each of these blue chip dividend stocks has the potential to generate steady gains in the years ahead, producing strong total returns.

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Altria Group continues to plug along, despite smoke-free worries

Altria Group, parent company of Philip Morris USA, may not seem like a great candidate for long-term dividend growth. Yes, it's a Dividend King -- a stock with 50 or more consecutive years of annual dividend increases. Altria has raised its payouts for 57 consecutive years.

Still, concerns remain high about its dividend prospects in a post-smoking world. Instead of quitting outright, many cigarette users in the U.S. are switching to alternative products, particularly non-tobacco nicotine pouches.

However, Altria continues to stay ahead of the decline in cigarette demand. Besides raising prices for its branded tobacco products, the company has implemented a long-term cost reduction plan since 2024. It has also thrown its hat into the non-tobacco nicotine pouch space, with its On! product competing with similar offerings from rivals, including Philip Morris International's Zyn.

Thanks to these efforts, Altria remains well positioned to maintain its Dividend King status. Last August, the company raised its dividend by 3.9%. At current prices, the stock has a nearly 6% forward yield.

Realty Income remains a top choice for armchair landlords

Realty Income, which states in its corporate slogan that it pays monthly dividends, is arguably a great vehicle for investors seeking to become what I call armchair landlords. That is, instead of dealing with the challenges of direct property ownership, such as collecting rent and fixing broken pipes, you can invest in this real estate investment trust (REIT).

From there, you can sit back and collect Realty Income's 5.1% annual forward dividend, paid in 12 installments each year. Alongside steady portfolio income, the REIT also offers the potential to benefit from real estate appreciation.

Realty Income may have a few years to go before it hits Dividend King status, but it has raised its payout each year since going public in 1994. Since its public market debut 32 years ago, dividend growth has averaged 4.1% annually.

It's not a get-rich-quick stock but a gradual wealth builder. As interest rates normalize and Realty Income's earnings and dividends steadily grow, this REIT will likely experience further modest price appreciation over a long time frame.

Pfizer's high yield stands out among healthcare stocks

Shares in the pharmaceutical company Pfizer offer one of the highest dividend yields among healthcare stocks. Currently, the forward yield is nearly 7.1% . Many may see this super high-yield and suspect that the stock could be a potential yield trap.

To some extent, these concerns make sense. Post-COVID, Pfizer experienced a major drop in sales and earnings as demand for its vaccine and treatment faded. Health and Human Services Secretary Robert F. Kennedy Jr.'s recent decision to terminate Emergency Use Authorization for COVID-19 drugs could further affect sales of Pfizer's Paxlovid drug.

Despite this extended hurdle and others, such as the upcoming patent expiration of its blockbuster drug Eliquis, the company is bouncing back. During the 2026 first quarter, non-COVID sales were up 7% year over year. Pfizer also continues to guide for $2.80 to $3 per share in adjusted earnings for 2026.

These adjusted earnings more than cover its $1.72 per share in annual cash dividends. Even during its earnings slump, Pfizer has kept raising payouts and now has 16 years of consecutive dividend growth.

Thomas Niel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Pfizer and Realty Income. The Motley Fool recommends Philip Morris International. The Motley Fool has a disclosure policy.