Here Are My Top 3 High-Yield Stocks to Buy Now

Rhys NorthwoodWednesday, Apr 16, 2025 6:41 am ET
188min read

In a market where interest rates remain stubbornly high and investors hunger for income, high-yield dividend stocks offer a lifeline. But not all dividends are created equal—some come with risks that outweigh the rewards. After sifting through analyst reports, financial metrics, and sector trends, I’ve identified three top-tier picks that balance juicy yields with solid fundamentals. Let’s dive into why Enterprise Products Partners (EPD), Brookfield Renewable Partners (BEP), and VICI Properties (VICI) should be on your radar.

1. Enterprise Products Partners (EPD): The Energy Infrastructure Champion


With a 7.09% dividend yield, EPD is a titan in midstream energy, managing the logistics of natural gas, oil, and petrochemicals. Analysts at TipRanks have given it a “Perfect 10” Smart Score, with 9 out of 12 analysts recommending a Strong Buy. The stock’s 11.4% year-to-date gain reflects its resilience, even as oil prices fluctuate.

EPD’s edge lies in its long-term contracts with customers, which lock in cash flow and shield it from commodity price swings. Its 12-month price target implies a 26.29% upside, suggesting analysts believe its valuation is undervalued.

Why it’s safe? A debt-to-capital ratio of just 13.6% (among the lowest in its sector) and a 25-year dividend growth streak. However, investors should monitor global energy demand trends and geopolitical risks.

2. Brookfield Renewable Partners (BEP): Betting on Green Growth


BEP’s 6.72–7.3% dividend yield makes it a standout in the renewable space. The company derives 90% of its generation capacity from contracted sources, with 70% of revenue inflation-protected, offering unprecedented stability. Analysts are bullish: 8 out of 9 recommend a Buy, with a price target implying a 44.4% return over 12 months.

BEP’s 5–9% annual dividend growth since 2011 underscores its reliability. Its portfolio of hydroelectric, wind, and solar assets positions it to benefit from global decarbonization trends.

Caveat: While its assets are recession-resistant, regulatory changes or delays in project approvals could slow growth. Still, its $50 billion pipeline of development projects suggests ample future upside.

3. VICI Properties (VICI): The Entertainment REIT Boom


VICI’s 5.6% dividend yield is a steal in the REIT sector. This specialist in casino, hospitality, and entertainment properties has surged 18.9% over the past year, driven by pent-up demand for live experiences. Analysts love it: 11 out of 12 recommend a Buy, with a 13.85% upside projected.

VICI’s focus on high-margin properties—like Las Vegas casinos and premier theaters—ensures strong occupancy and rent growth. Its dividend coverage ratio of 1.5x (well above the industry average) signals safety.

Risk to watch: Economic downturns could dent discretionary spending. But with millennials and Gen Z driving experiential consumption, VICI is positioned to thrive in both booms and slowdowns.

The Final Call: High-Yield, High-Conviction

These three stocks aren’t just yield plays—they’re bets on sectors with structural tailwinds. EPD benefits from energy infrastructure’s permanence, BEP from the clean energy revolution, and VICI from the post-pandemic rebound in entertainment.

Yet, no dividend is risk-free. High yields like these often come with sector-specific vulnerabilities. Before pulling the trigger:
- Check payout ratios (BEP’s is ~1.2x, EPD’s ~1.1x—both healthy).
- Assess debt levels (all three have manageable leverage).
- Monitor macro trends (oil prices for EPD, regulatory shifts for BEP, consumer sentiment for VICI).

For income-focused investors willing to do their homework, these three could deliver both steady payouts and capital appreciation. As always, diversify, and don’t let the siren song of yield drown out common sense.

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