Want Reliable Income No Matter What the Market Does? Start With These 3 High-Yield Stocks.

The stock market may have soared 15% from its late-March low to its recently reached record high. But inflation is still rising, economic growth remains anemic, and stocks are wildly expensive. You don't want to blindly jump on the bullish bandwagon here, simply because there's no certainty about what's next.

To this end, if you feel compelled to dial back some of your exposure to risky growth names and set your portfolio up for some solid, reliable income for whatever's coming down the pike, here are three high-yield dividend stocks to consider.

Vici Properties

Given all the aforementioned potential problems with the economy, stepping into a stake in Vici Properties (NYSE: VICI) seems like a risky bet. The company's proven otherwise though, performing well when it seemingly shouldn't have and supporting its rising dividends with rising earnings growth.

It's a real estate investment trust, or REIT. That just means it owns a portfolio of real estate that it rents out and passes along the majority of its profit to shareholders without first taxing that income at the corporate level. This ultimately means investors pocket more of a company's income stream than they might get from more conventional divided-paying stocks.

Even by REIT standards, however, Vici is a little unusual. Rather than apartment complexes, office buildings, or hotels, Vici owns properties like golf courses, concert venues, sports arenas, retail centers, and casinos, including several run by MGM and Caesars Entertainment. And there's the rub. These are seemingly cyclical industries -- businesses that slow when economic headwinds start blowing and consumers reduce spending.

Except, that's not actually the case. Largely serving more affluent consumers who can and do continue to spend even when things get economically tough, Vici's profitability has been surprisingly resilient. It obviously stumbled during the COVID-19 pandemic and briefly stalled in 2022.

It's target market is still spending, supporting bottom-line growth that in turn has allowed for eight consecutive years of dividend increases. That's not a lot. It's every year following this REIT's launch in 2017 though, with a dividend that's nearly doubled during this time. You would be plugging in while its forward-looking yield stands at 6.2%.

Enbridge

The advent of renewable energy sources like solar and wind doesn't mean the planet is weaning itself from the use of crude oil and natural gas. Quite the opposite, actually. The International Energy Agency reports the world consumed more oil last year than it ever had before and is on pace to use even more this year. Indeed, the IEA expects global consumption of crude to continue growing through 2050. We're just not building alternative energy infrastructure fast enough. We still need a way of getting natural gas and crude oil from one place to another in the meantime.

Enter Enbridge (NYSE: ENB).

Simply put, Enbridge owns and operates more than 18,000 miles of crude and gas pipelines capable of transporting nearly 6 million barrels (or equivalent) every single day. The great part about this business is that the price of the natural gas or crude oil being delivered via these pipes is largely irrelevant -- Enbridge is effectively a tollbooth, paid for the amount of volume it handles. As long as Canada and the U. S. are drilling and consuming gas and oil, Enbridge is generating revenue regardless of energy prices.

Image source: Getty Images.

This of course is an ideal business model for a dividend-paying company. Revenue is pretty consistent, as are operating costs. That's how the company's been able to raise its annual per-share payout for 31 consecutive years. Newcomers will be getting in while the stock's yielding 5.3%.

Progressive

Last but not least, add insurer Progressive (NYSE: PGR) to your list of high-yield dividend stocks to buy to defend your portfolio from the unknown while you can claim its forward-looking yield of... well, that's tricky. Although the company makes a modest quarterly payment, the bulk of its dividend comes in a lump sum early in the year based on the previous year's profitability.

This past January's special annual payment of $13.50 per share translates into a trailing dividend yield of about 7%.

Much of the credit for this above-average yield goes to the fact that this stock has underperformed during the past 12 months, falling 30% from last May's peak. After a fantastic 2024, investors grew concerned that the insurance company would struggle to deliver a similar performance.

Interestingly, the market was waiting on a headwind that never materialized. Last year's total active policies increased by 10% year over year, driving premium growth of 8% and a 25% year-over-year increase in net income. And so far this year, the company's doing even better.

This still doesn't guarantee another big dividend come January; things could change between now and then. It certainly raises the odds of a big payment though.

Just bear in mind the inconsistent nature of Progressive's dividends means it's not a cornerstone holding for the income-producing portion of your portfolio, particularly if you need dividends to cover recurring living expenses. It's a fantastic fourth or fifth dividend position if you don't need a consistent income stream, just because it's capable of dishing out so much cash when it does.

James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Enbridge and Progressive. The Motley Fool recommends Vici Properties. The Motley Fool has a disclosure policy.