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Top Dividend Shares Offering Over 5% Yield for Potential Purchase in 2025

Top Dividend-Paying Shares Generating over 5% Yield for Potential Purchase in 2025
Top Dividend-Paying Shares Generating over 5% Yield for Potential Purchase in 2025

Top Dividend Shares Offering Over 5% Yield for Potential Purchase in 2025

Diving into the world of dividend stocks can be a rewarding investment journey. They offer both income and potential for higher total returns compared to non-payers. Even with the recent stock market rally, there are still high-yielding dividend stocks available for those eager to boost their income. Here are five top picks, each yielding over 5%, perfect for your investment portfolio this year:

1. Brookfield Renewable (BEPC, BEP)

Brookfield Renewable is a leading global renewable energy producer that currently offers a 5.7% yield. This company generates stable cash flow thanks to its long-term, fixed-rate power purchase agreements with utilities and large corporations, making up about 90% of its power production. With 70% of its revenue indexed to inflation, Brookfield Renewable has demonstrated a strong growth rate of 6% compounded annually over the past 20 years. The company aims to continue this growth, targeting 5% to 9% dividend growth moving forward.

2. Enbridge (ENB)

Enbridge, the Canadian pipeline and utility company, presents a 6% yield. With around 98% of its earnings coming from cost-of-service assets or fixed contracts, the company boasts significant predictability. Enbridge's earnings have proven so consistent that it's on track to achieve its financial guidance for the 19th year in a row. Fueled by a massive backlog of commercial projects, Enbridge aims to grow its cash flow per share at a 3% compound rate through 2026, and around 5% thereafter.

3. Realty Income (O)

Realty Income's monthly dividend currently brings a 5.8% yield. This REIT has a globally-diverse portfolio of properties net-leased to leading companies, generating steady rental income. With a reputation for dividend growth, Realty Income has increased its payout for 30 consecutive years and 109 quarters in a row. Thanks to a strong financial profile and a vast commercial real estate market, Realty Income shows signs of further dividend growth in the future.

4. Verizon (VZ)

Verizon is another top pick, offering a 7% yield. As consumers and businesses pay their wireless and broadband bills, Verizon generates substantial cash flow to support its dividend while expanding its 5G and fiber networks. With a history of 18 consecutive years of dividend increases, Verizon is set to continue boosting its payout. The recent acquisition of Frontier Communications will bolster its fiber network and position it for long-term growth, ensuring its dividend remains solid.

5. Vici Properties (VICI)

Vici Properties, another REIT, presents a 5.9% yield. This company generates income through its casinos and experiential real estate secured with long-term net leases, as well as interest income from financing agreements. With a solid track record of seven consecutive years of dividend growth, Vici Properties aims to continue this growth. Driven by contractual rights and financing agreements, Vici Properties anticipates future growth, ensuring its dividend continues to rise.

Embrace these five high-yielding dividend stocks, each backed by a strong financial profile and a history of consistent dividend growth. They promise to deliver a higher-yielding and steadily increasing income stream, making them ideal additions to your investment portfolio this year.

Further exploring the world of investing, consider allocating some of your finance into these high-yielding dividend stocks. The consistent growth of their dividends, coupled with their stable income streams, can contribute significantly to your overall investment strategy. By investing wisely in these stocks, you're not only gaining potential income but also ensuring a gradual increase in your capital over time.

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