Five Dividend-Paying Stocks With Yields Above 5%: A Closer Look at Top Income Generators

While the broader market’s average dividend yield sits at a mere 1.2% based on S&P 500 data, a select group of quality companies currently deliver substantially higher distributions—well above the 5% threshold. These income-generating powerhouses merit serious consideration for investors seeking meaningful dividend income coupled with solid growth prospects.

The High-Yield Dividend Landscape

Dividend stocks yielding 5% or more have become increasingly attractive in today’s environment. What distinguishes the best performers is not just their current payouts, but their proven ability to sustain and grow those distributions through predictable, stable cash generation. Here’s an examination of five compelling opportunities.

Real Estate Investment Trusts Lead the Income Charge

NNN REIT (NYSE: NNN) currently distributes at a 5.9% yield and represents one of the sector’s most reliable dividend growers, having increased payments for 36 consecutive years—the third-longest streak among all REITs. The company’s focus on triple-net leased retail properties creates exceptional cash stability since tenants bear all operating expenses including maintenance, property taxes, and insurance. By maintaining a conservative 70% payout ratio, NNN REIT retains capital for strategic acquisitions, frequently through sale-leaseback arrangements that capitalize on retailer expansion needs.

VICI Properties (NYSE: VICI) offers a 6.2% yield while pioneering the experiential real estate segment—gaming, hospitality, wellness, and entertainment venues. Its ultra-long-term NNN agreements include inflation-adjustment clauses, ensuring rental income growth keeps pace with rising costs. Since 2018, VICI has expanded its dividend at a 6.6% compound annual rate, substantially outpacing the 2.3% growth of comparable NNN-focused REITs. A recent $1.2 billion acquisition of seven properties from Golden Entertainment signals continued expansion momentum.

Energy and Utilities Deliver Steady Distributions

Clearway Energy (NYSE: CWEN, CWEN.A) maintains a 5% dividend yield through stable cash flows generated across wind, solar, and natural gas facilities. Revenue comes via long-term, fixed-rate power purchase agreements with utilities and corporations, ensuring predictable earnings. The company targets 70% of free cash flow distribution, with plans to grow per-share cash available from $2.11 currently to $2.70 by 2027, supporting dividend expansion from the current $1.81 annualized rate to $1.98 by 2027.

Oneok (NYSE: OKE) offers a 5.9% yield backed by diversified midstream operations and fee-based cash flows spanning over 25 years of consecutive growth. Though not every year saw increases, the company has nearly doubled its dividend over the past decade. Management targets 3-4% annual dividend growth, supported by recent strategic acquisitions generating hundreds of millions in synergies and organic expansion projects slated for completion through mid-2028.

Telecom Excellence in Dividend Growth

Verizon (NYSE: VZ) leads with a 6.7% dividend yield and has extended its consecutive annual increase streak to 19 years. The telecommunications giant generates enormous recurring cash flow—$28 billion from operations during the first nine months of this year alone. After investing $12.3 billion in network maintenance and expansion, the company retained $15.8 billion in free cash flow, comfortably exceeding the $8.6 billion paid in dividends. The pending $20 billion acquisition of Frontier Communications will accelerate Verizon’s fiber expansion strategy, enabling broader wireless-broadband bundling that strengthens customer retention and profit margins. Expanding free cash flow positions the company to sustain its high-yield dividend increases indefinitely.

What Makes These Top Dividend-Paying Stocks Stand Out

Each of these five companies combines compelling current yields exceeding 5% with fortress-like financial profiles. Their payout strategies deliberately retain sufficient capital for reinvestment in growth initiatives—whether property acquisitions, infrastructure upgrades, or operational synergies. This balanced approach ensures distribution growth accelerates alongside core business expansion.

For dividend investors seeking substantial passive income from top 10 stocks that pay dividends, this collection offers both immediate yield and long-term appreciation potential. Strong cash generation, conservative payout ratios, and demonstrated management discipline create a compelling case for these high-quality, high-yield dividend stocks without hesitation.