High-Yield Dividend Stocks: 5 Reliable Choices for Passive Income

With the S&P 500 currently exhibiting historically low dividend yields, finding attractive income opportunities can be challenging. However, some high-quality stocks still offer significantly higher dividend yields. Here are five standout options with payouts exceeding 5% that you can consider adding to your portfolio.

Clearway Energy

Clearway Energy (CWEN) (CWEN.A) presents a compelling 6.3% dividend yield. This clean energy infrastructure company underpins its payout with consistent, predictable cash flow. It generates revenue by selling electricity produced from its natural gas and renewable energy assets through long-term power purchase agreements (PPAs) with utilities and major corporate clients.

The company aims to distribute 70%-80% of its stable cash flow as dividends, reinvesting the remaining portion into new clean energy ventures. With investments planned through 2027, Clearway boasts considerable visibility into future earnings growth. The company anticipates its cash available for dividends to increase from $2.08 per share this year to $2.50-$2.70 per share in 2027. This escalating cash flow is projected to support dividend growth within its targeted annual range of 5%-8%. Clearway is proactively exploring growth opportunities beyond 2027 to drive future dividend increases.

Enterprise Products Partners

Enterprise Products Partners (EPD) currently offers a yield of 6.9%. This master limited partnership (MLP), which provides investors with a Schedule K-1 Federal Tax Form annually, also backs its distribution with stable cash flow. The partnership's pipelines, processing plants, and export facilities primarily generate fee-based income from long-term contracts and government-regulated rate structures.

The MLP currently has $6 billion of organic expansion projects underway, scheduled to commence commercial operations by the end of the year. Additional projects are under construction and are anticipated to come online in 2026. As these projects become operational, they will provide Enterprise Products with stable sources of incremental cash flow. This cash flow should fuel continued increases in its high-yielding distribution, a practice it has maintained for 27 consecutive years. Furthermore, the midstream giant possesses one of the strongest balance sheets in the sector, providing ample financial flexibility to support growth beyond the coming year.

Vici Properties

Vici Properties (VICI) currently yields a dividend of 5.4%. This real estate investment trust (REIT) specializes in acquiring and leasing market-leading gaming, hospitality, wellness, entertainment, and leisure destinations. Vici leases its properties under exceptionally long-term net leases, averaging a remaining term of 40 years, to reputable operating companies. These leases increasingly feature rent escalations tied to inflation, reaching 42% in 2025 and projected to climb to 90% by 2035. As a result, Vici secures a consistent and steadily growing stream of rental income.

The REIT also strategically invests in loans secured by experiential real estate assets. These investments generate supplementary income and pave the way for future investment opportunities, often including the option to acquire additional properties through sale-leaseback transactions.

Vici Properties' expanding portfolio has facilitated consistent dividend increases. The company recently extended its dividend growth streak to eight consecutive years, a feat achieved every year since its inception. During this period, the REIT has delivered a peer-leading 6.6% compound annual dividend growth rate.

Verizon

Verizon (VZ) boasts a dividend yield of 6.4%. This major U.S. telecom company generates substantial recurring revenue from consumers paying their cellphone and internet bills. Verizon allocates these funds to maintain its network infrastructure, pay its dividend, and enhance its financial position. This year, Verizon anticipates generating between $19.5 billion and $20.5 billion in free cash flow after accounting for capital expenditures. This comfortably exceeds its annual dividend commitment of less than $12 billion.

Verizon's robust financial profile enables it to make strategic investments in expanding its network capabilities, which should further enhance its free cash flow generation in the future. One such investment is the proposed acquisition of Frontier Communications for $20 billion, aimed at bolstering Verizon's fiber network. These growth investments are expected to support continued dividend increases. Verizon recently extended its dividend growth streak to 19 consecutive years, the longest in the U.S. telecom sector.

W.P. Carey

W.P. Carey (WPC) offers a dividend yield of 5.4%. This REIT maintains a well-diversified portfolio of operationally critical real estate assets, including industrial, retail, warehouse, and other properties, secured by long-term net leases with embedded rent escalations. This structure provides the REIT with highly stable and steadily increasing cash flow.

The company consistently invests in acquiring new properties. It has allocated $1.3 billion to new portfolio additions in the first eight months of the year and is on track to achieve its investment volume target range of $1.4 billion to $1.8 billion.

W.P. Carey's portfolio growth investments enable it to increase its dividend. The REIT has raised its dividend every quarter this year, resulting in a 3.4% increase over the past 12 months. Future rent increases and acquisitions should allow W.P. Carey to continue its dividend growth trajectory.

Top-Notch Income Stocks

Clearway Energy, Enterprise Products Partners, Verizon, Vici Properties, and W.P. Carey all generate consistent cash flow, which supports their attractive dividends and growth investments that drive future dividend increases. These characteristics make them compelling high-yield dividend stocks to consider for income-focused portfolios.