High-Yield Dividend Stocks with Sustainable Growth: Assessing Financial Resilience and Cash Flow Visibility

Investors seeking income generation in today's market must balance attractive yields with the sustainability of those returns. High-yield dividend stocks often come with inherent risks, particularly when payout ratios outpace cash flow generation. However, certain companies-such as NNN REIT, VICI Properties, Oneok, and Clearway Energy-demonstrate how disciplined capital management, robust cash flow visibility, and strategic growth initiatives can create a compelling case for income-focused portfolios. This analysis evaluates these firms alongside Verizon, highlighting their strengths and risks in the context of 2025 financial performance.

NNN REIT: A Model of Disciplined Growth and Coverage

NNN REIT (NNN) has emerged as a standout in the net-lease REIT sector, with Q3 2025 results underscoring its operational and financial resilience. The company reported a 1.2% year-over-year increase in core funds from operations (FFO) per share to $0.85 and a 2.4% rise in adjusted FFO (AFFO) to $0.86. Its 2025 payout ratio of 68.5% ensures a well-covered dividend yield of nearly 6%, supported by $912 million in annualized base rent and $1.4 billion in liquidity according to earnings call. NNN's strategic focus on disciplined acquisitions-raising its 2025 acquisition guidance to $850–$950 million-further strengthens its growth trajectory, even as occupancy dipped to 97.5% in Q3. Management's confidence in exceeding 98% occupancy by year-end, coupled with an industry-leading average debt maturity of 11 years, positions NNN as a low-risk, high-reward option for income investors.

VICI Properties: Institutional Confidence and Steady Yield

VICI Properties (VICI) has also demonstrated resilience, with a 6.2% dividend yield and a payout ratio of 68.7%. The company's recent dividend hike to $0.45 per share (annualized $1.80) reflects its ability to balance shareholder returns with operational stability. Institutional ownership of 97.71%, including increased stakes by Vanguard and T. Rowe Price, signals strong institutional confidence. VICI's FY2025 guidance of $2.36–$2.37 EPS further underscores its predictable cash flow, driven by its portfolio of premium real estate assets. While its business model is heavily tied to the gaming and hospitality sectors, VICI's long-term lease structures and high credit quality tenants mitigate sector-specific risks.

Oneok: Fee-Based Stability and Growth Catalysts

Oneok (OKE) offers a 5.9% yield with a payout ratio of 75.74% according to market analysis, slightly higher than ideal but still within sustainable bounds given its fee-based business model. The company's Q3 2025 earnings exceeded expectations, with FY2025 guidance set at $4.97–$5.77 EPS. Oneok's cash flow visibility stems from its extensive pipeline and processing infrastructure, bolstered by $500 million in synergy gains from recent acquisitions. Growth projects like the Bighorn plant and Eiger Express pipeline, along with increased throughput in key regions, provide clear catalysts for 2026. Despite a 27% year-to-date stock decline, Oneok's strategic focus on capacity expansion and cost optimization positions it as a resilient player in the energy transition.

Clearway Energy: Renewable Growth vs. Payout Sustainability

Clearway Energy (CWEN) presents a mixed picture. While its Q3 2025 results included a 5.6% yield and narrowed CAFD guidance of $420–$440 million, its payout ratio of 273.85% raises red flags about dividend sustainability. The company's recent acquisition of a 613 MW solar portfolio and a 2 GW pipeline for 2026/2027 highlights its commitment to renewable energy growth. However, such a high payout ratio-far exceeding 100%-suggests reliance on non-cash items or external financing to fund dividends. Investors must weigh Clearway's long-term growth potential against the near-term risk of a dividend cut if cash flow falters.

Verizon: High Yield with Structural Risks

Verizon (VZ) offers a 6.56% yield, supported by 19 consecutive years of dividend increases according to financial analysis. However, its financial health is more precarious. A debt-to-equity ratio of 1.65 and an Altman Z-Score of 1.25 place the company in the "financial distress" zone. While Verizon projects improved free cash flow by 2026, its declining operating margin and a 15,000-employee workforce reduction highlight operational challenges. For income investors, Verizon's yield is tempting, but its structural risks-particularly in a low-interest-rate environment-demand cautious evaluation.

Conclusion: Balancing Yield and Resilience

The key takeaway for income investors is that high yields must be paired with sustainable cash flow and prudent payout ratios. NNN REIT and VICI Properties exemplify this balance, with well-covered dividends and strong growth catalysts. Oneok's fee-based model and strategic projects also make it a compelling choice, albeit with a slightly elevated payout ratio. Clearway Energy and Verizon, while offering attractive yields, require closer scrutiny due to their respective risks of payout sustainability and financial distress. For those prioritizing long-term stability, NNN and VICI stand out as the most reliable options, while Oneok offers a balanced risk-reward profile.