5 Dividend Stocks Yielding Over 5% to Buy Right Now

In the ever-evolving landscape of the stock market, dividend stocks have consistently proven to be a reliable source of income for investors. With the S&P 500's yield hovering near a 20-year low of 1.2%, the search for high-yielding dividend stocks has become more critical than ever. Fortunately, there are still some gems out there that offer yields above 5%. Let's dive into five top dividend stocks that are not only yielding over 5% but also have strong fundamentals and growth prospects.

1. Brookfield Renewable (BEPC, BEP)
Brookfield Renewable is a leading global renewable energy producer with a 5.7% dividend yield. The company's stable cash flow is supported by long-term, fixed-rate power purchase agreements with utilities and large corporations. Most of these contracts are indexed to inflation, ensuring steady income growth. Brookfield Renewable has a history of growing its payout at a 6% compound annual rate over the past 20 years and targets 5% to 9% dividend growth in the future. This growth is backed by a more than 10% annual increase in funds from operations (FFO) per share, secured through 2029.

2. Enbridge (ENB)
Enbridge, a Canadian pipeline and utility company, offers a 6% dividend yield. The company's earnings are highly predictable, with about 98% coming from cost-of-service or contracted assets. Enbridge has achieved its financial guidance for 19 consecutive years and has increased its dividend for 30 straight years. The company's massive backlog of capital projects, expected to come online through 2029, supports its expectation of growing cash flow per share by 3% annually through 2026 and by around 5% per year after that.

3. Realty Income (O)
Realty Income, a real estate investment trust (REIT), yields 5.8%. The company generates stable rental income from a globally diversified portfolio of properties, including retail, industrial, gaming, and others. Realty Income has an exceptional record of increasing its dividend, raising its payout for 30 straight years, including the past 109 quarters in a row. The REIT's elite financial profile and long growth runway make it a reliable option for investors seeking stable dividend growth.

4. Verizon (VZ)
Verizon Communications pays a 7% dividend yield, making it one of the highest-yielding stocks in the telecom sector. The company's stable cash flow comes from consumers and businesses paying their wireless and broadband bills. Verizon has increased its dividend for 18 straight years, the longest current streak in the U.S. telecom sector. The company's investments in 5G and fiber networks, along with its acquisition of Frontier Communications, position it for continued growth and dividend increases.

5. Vici Properties (VICI)
Vici Properties offers a 5.9% dividend yield. The REIT owns casinos and other experiential real estate secured by long-term net leases. Vici Properties has increased its payout for seven years in a row, growing its dividend at a 7% compound annual rate, well above its peer group average of 2.2%. The REIT's multiple growth drivers, including contracts that give it the right to buy additional casino properties, make it an attractive option for investors seeking high dividend growth.

In conclusion, these five dividend stocks—Brookfield Renewable, Enbridge, Realty Income, Verizon, and Vici Properties—offer attractive yields above 5% and have strong fundamentals and growth prospects. Investors seeking high-income investments should consider these stocks as part of their portfolio, given their high yields, stable cash flow, and history of consistent dividend growth. As always, it's essential to do your own research and consider your investment goals and risk tolerance before making any investment decisions.