4 Top Dividend Stocks: Yielding More Than 4% to Buy This December

As the year winds down, income-seeking investors are looking for high-yielding dividend stocks to round out their portfolios. With interest rates on the rise, lower-risk investments like bonds and CDs have become more appealing, pushing up the yields on high-quality dividend stocks. The S&P 500's dividend yield has fallen to about 1.2% due to the market rally, but there are still some compelling income opportunities. Here are four top dividend stocks yielding more than 4% to scoop up this December.

Brookfield Renewable is a leading global renewable-energy producer with a current yield of over 4.5%. The company has grown its payout at a 6% compound annual rate over the past 20 years and expects to deliver 5% to 9% annual growth in the future. Brookfield Renewable's growth is powered by a combination of inflation-linked rate increases on its existing power purchase agreements, margin enhancement activities like capturing higher market prices as legacy contracts expire, development projects, and M&A activities. The company's massive backlog of development projects alone should add 4% to 6% to its FFO per share each year through the end of the decade.

Chevron is an oil giant with a current yield of just over 4%. The company has increased its dividend annually for 37 straight years and has grown its payout at a peer-leading pace over the past five years, including by 8% earlier this year. Chevron expects to deliver more than 10% annual free cash flow growth through 2027, assuming oil averages $60 a barrel. Fueling that forecast is its high-return capital program focused on growing its lowest-cost and highest-margin assets. The company's acquisition of Hess has the potential to more than double its free cash flow by 2027, providing ample upside from higher oil prices. Chevron's strong balance sheet ensures that it can continue investing in its business, growing its dividend, and repurchasing shares, even if oil prices average $50 a barrel over the next couple of years.

Realty Income is a real estate investment trust (REIT) with a current yield of 5.5%. The company has increased its dividend for 30 straight years and the past 108 quarters in a row. Realty Income has grown its payout at a 4.3% compound annual rate since coming public three decades ago. The REIT expects to grow its adjusted FFO per share at a 4% to 5% annual rate in the future, driven by rent growth and acquisitions. Realty Income has ample financial flexibility to fund its expansion, including internally generated cash flow after paying dividends, capital recycling, its elite balance sheet, and its plan to tap the private capital markets. The company sources billions of dollars in deals each year, giving it many opportunities to expand its portfolio and continue increasing its dividend.

Verizon is a mobile and broadband giant with a current yield of more than 6%. The company has increased its payment for 18 straight years, the longest current streak in the U.S. telecom sector. Verizon is a cash flow machine, producing enough cash to invest in expanding its network and pay its high-yielding dividend with ample room to spare. The company's excess cash enables it to maintain a strong balance sheet and use its financial strength to buy Frontier Communications in a $20 billion deal that will expand its fiber network and earnings. The growth from that deal and its capital investments should enable Verizon to continue pushing its high-yielding payout even higher.



These four companies are top-tier dividend stocks that offer high-yielding payouts that they should be able to continue growing in the future. Their robust growth prospects and solid financial health make them great dividend stocks to buy hand over fist this December to boost your dividend income.

Investors seeking high-yielding dividend stocks should consider adding these four companies to their portfolios. Their strong track records and promising outlooks make them ideal candidates for generating passive income and growing their wealth over the long term. As the market continues to evolve, these top dividend stocks should remain attractive options for income-seeking investors.