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

The S&P 500's dividend yield has been trending down over the years due to rising valuations and a de-emphasis on paying dividends by certain sectors. It's currently around 1%, near its lowest level in decades.

However, income-focused investors still have some enticing options. Here are five high-quality dividend stocks yielding at least 5% that you can buy right now for passive income.

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EPR Properties

EPR Properties (NYSE: EPR) pays a monthly dividend that currently yields around 5.8%. The real estate investment trust (REIT) backs its high-yielding dividend with a diversified portfolio of experiential real estate, including theaters, eat-and-play venues, and attractions. The REIT leases its properties to operating tenants under long-term, triple net leases that generate stable cash flow because tenants cover all property operating costs, including routine maintenance, real estate taxes, and building insurance.

EPR has a conservative dividend payout ratio (around 70% of its cash flow) and a strong investment-grade balance sheet, giving it the financial flexibility to invest in new income-generating experiential real estate. It recently bought six amusement park properties from Six Flags for $315 million and then leased them to a new tenant. It expects to invest up to $600 million this year, including the purchase of an additional attraction from Six Flags. These new investments should support continued dividend growth (EPR boosted its payout by 5.1% earlier this year).

Enbridge

Enbridge's (NYSE: ENB) payout is right at 5%. The Canadian utility and pipeline company generates very predictable cash flow (98% regulated or take-or-pay contracted). Enbridge's earnings are so predictable that it has achieved its annual financial guidance for 20 straight years. The company pays out between 60% and 70% of its stable cash flow in dividends and has a strong investment-grade balance sheet.

The energy infrastructure company's strong financial profile supports its growth initiatives. Enbridge currently has a multi-year, multi-billion-dollar backlog of expansion projects under construction, including new oil and gas pipelines, utility expansions, and renewable energy projects. They support the company's view that it can grow its cash flow per share at around a 5% annual rate after this year. That should support continued dividend growth. Enbridge has raised its payment for 31 straight years (in Canadian dollars).

Clearway Energy

Clearway Energy (NYSE: CWEN) currently has a 5.2% dividend yield. The clean power producer (wind, solar, and natural gas) generates stable cash flow by selling its electricity under long-term, fixed-rate power purchase agreements with utilities and large corporations.

The company has the financial flexibility to invest over $3 billion through the end of the decade to grow its renewable energy portfolio, including wind repowering projects, acquisitions, and battery storage additions. This investment rate should support 7% to 8% annual cash flow per share growth through 2030. Clearway expects to continue investing beyond 2030, including in projects to support digital infrastructure growth. These future investments should drive annual cash flow per share growth of 5% to 8%+ beyond 2030, supporting continued dividend increases. Clearway has raised its payment every quarter since late 2020.

Realty Income

Realty Income's (NYSE: O) monthly dividend yields 5%. The REIT backs that income stream with a diversified portfolio of net-leased real estate. It owns retail, industrial, gaming, and other properties across North America and Europe, leased to many of the world's leading companies.

The REIT has a terrific dividend record. It has raised its monthly dividend payment 135 times since its public market listing in 1994, including for the last 115 consecutive quarters, growing it at a 4.1% compound annual rate over the last three decades. Realty Income is in a strong position to continue growing its dividend. It has a conservative dividend payout ratio (about 70% of its cash flow) and one of the sector's strongest balance sheets. The REIT has formed several strategic partnerships over the past year to enhance its growth, including a recent programmatic joint venture to invest in data centers. Realty Income's continued investment in income-generating properties should support its growing dividend.

Verizon

Verizon (NYSE: VZ) has a 6.5% dividend yield. The telecom giant generates recurring revenue by providing broadband and mobile services to customers. That gives it the funds to expand its network while returning significant cash to shareholders. The telecom giant expects to produce at least $21.5 billion of free cash flow this year (up 7% from last year) after capital spending (up to $16.5 billion). That will easily cover its dividend (around $11.6 billion per year), leaving it with excess cash to strengthen its balance sheet and repurchase shares.

Verizon's growing cash flow from network expansion and acquisitions (it bought Frontier Communications for $20 billion earlier this year) should drive continued revenue and earnings growth. That growth should enable Verizon to continue increasing its dividend. It extended its growth streak to 19 years in a row last year.

Prodigious passive income producers

Enbridge, Clearway Energy, EPR Properties, Realty Income, and Verizon all offer dividends yielding 5% or more backed by stable cash flows and rock-solid financial profiles. They've done a solid job growing their dividends, and that trend should continue. That makes them ideal dividend stocks to buy right now for passive income.

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