3 High-Yield Stocks That Could Help Set You Up for Life
Key Points
Realty Income is a landlord with a conservative ethos and a dividend focus.
Enterprise Products Partners operates a toll-taker business in the energy sector.
Telecom giant Verizon has an annuity-like income stream.
- 10 stocks we like better than Verizon Communications ›
If you are looking for income stocks with high yields that can help set you up with a lifetime of reliable dividends, you'll want to focus on the businesses that back the yields. With yields of more than 5%, Realty Income (NYSE: O), Enterprise Products Partners (NYSE: EPD), and Verizon (NYSE: VZ) are all worth a deep dive today.
1. Realty Income is The Monthly Dividend Company
Realty Income trademarked the nickname "The Monthly Dividend Company" to highlight the frequency of its dividend and, perhaps more notably, the importance of dividends to the company. It is built from the ground up to be reliable, with over three decades of annual dividend increases already in the books.
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The real estate investment trust (REIT) has an investment-grade credit rating, indicating a strong financial foundation. But that's just the starting point. It owns over 15,500 properties across the United States and Europe. It has exposure to retail and industrial assets, as well as a selection of more unique properties, like vineyards, casinos, and data centers. And the company's average lease length is 8.8 years, which provides stability to the rent roll if there is a recession.
Even the most conservative investors will appreciate Realty Income and its attractive 5.1% dividend yield.
2. Enterprise Products Partners sidesteps commodity prices
Enterprise Products Partners' 5.8% yield is supported by an energy business, which might worry some investors amid rising geopolitical tension in the Middle East. That's less of a worry than you may think because Enterprise's business is to move oil and natural gas around the world, collecting fees for the use of its vital North American energy infrastructure assets. The volume of energy moving through Enterprise's system is more important than the price of what is being moved, and there's no indication that energy market volatility will have a negative impact on Enterprise's volume. In fact, it is more likely to be a net benefit.
Enterprise has increased its distribution annually for 27 consecutive years. It has an investment-grade-rated balance sheet. And the master limited partnership's distributable cash flow covered its distribution by a very strong 1.7x in 2025. If you can look beyond the headlines, Enterprise's toll-taker business model has proven it can support a lofty income stream through good times and bad in the energy sector.
3. Verizon's loyal customers are the key to its dividend success
Telecommunications giant Verizon is likely to be the riskiest stock on this list. That's partly because the cellphone service industry is highly competitive, requiring the company to make massive, ongoing investments just to keep pace with its peers. However, telecom customers tend to be very sticky, creating an annuity-like income stream to support Verizon's capital investment needs and its lofty 5.7% yield. The dividend has been increased annually for 19 years.
The bigger risk is that Verizon has brought in a new CEO and charged them with improving the company's growth rate. This change is relatively new, so the CEO's plans for the future remain untested. That said, the company made sure to point out when it released fourth quarter 2025 earnings that the dividend is one of its highest priorities. If you can stomach a little uncertainty as a new leader takes the reins, Verizon could be a good fit for your high-yield portfolio.
High yields and good businesses are the proper mix
A troubled company won't be able to support a high yield for long. Which is why you need to make sure you dig into the businesses you are buying if you are a dividend investor. Realty Income, Enterprise, and Verizon all generate reliable cash flows to support their lofty yields. And each one looks like it could set you up for a lifetime of reliable and growing dividend checks.
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Reuben Gregg Brewer has positions in Realty Income. The Motley Fool has positions in and recommends Realty Income. The Motley Fool recommends Enterprise Products Partners and Verizon Communications. The Motley Fool has a disclosure policy.
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