A high dividend yield doesn’t really matter if it’s not backed by a solid company.
Investing in high-dividend stocks can offer long-term investors a reliable income stream from firms that have a track record of sustainable dividend payments. When dividends are reinvested over the years, the effects of compounding can lead to significant returns.
Companies that pay dividends tend to be large and financially stable. Their stock prices are generally less volatile than those of growth stocks, offering some protection in market downturns. Regularly paying and increasing dividends indicate good cash flow and effective management.
However, it’s crucial not to get caught in what some call the yield trap. Focus on the strength of the underlying business, as unusually high yields may signal potential declines in share price due to company-specific issues. Here are three dividend stocks with yields of 5% or more worth considering right now.
1. Real Estate Income
Real Estate Income has a dividend yield around 5.8%. Known for its monthly payouts, the company has paid dividends consistently for over 56 years. It’s declared a staggering 666 monthly dividends, including 113 quarterly increases since listing on the NYSE in 1994.
This leading real estate investment trust (REIT) invests mainly in single-tenant retail, industrial, and agricultural properties under long-term leases. This strategy ensures steady cash flow and reliable monthly dividends for shareholders.
In the third quarter of 2025, Realty Income reported adjusted funds from operations of $1.08 per share, with total revenue of $1.47 billion—an 11% uptick from the previous year. Their portfolio occupancy was impressive at 98.7%, with a rental collection rate of 103.5%. They primarily use a net lease structure, keeping operating costs like taxes and maintenance on the tenant, which helps maintain predictable cash flow.
With over 15,500 properties in the U.S. and Europe, leasing to 1,600-plus clients across about 100 industries, the company’s tenant diversity is quite robust. Notably, no single tenant accounts for more than 3.3% of annual base rent, providing broad exposure in the real estate sector. If you’re on the hunt for a strong, long-term dividend investment, this one fits the bill.
2. Pfizer
Pfizer has a dividend yield of approximately 6.8%. The stock’s recent performance hasn’t been stellar, yet Pfizer has maintained a long history of quarterly dividends, with annual increases for 16 consecutive years.
In the last year, Pfizer generated around $14 billion in free cash flow. While the company faces pressure from dropping sales of COVID-19 products and upcoming patent expirations, it’s shifting strategically via major acquisitions and has a promising pipeline in sectors like oncology and obesity.
For 2024, Pfizer’s total revenue is projected at $63.6 billion, reflecting a 7% growth from 2023. Excluding COVID-related product revenue, operating growth surged by 12%. The $43 billion acquisition of Seagen in 2023 has significantly bolstered Pfizer’s oncology offerings, with several approved drugs already in the mix. Also, as a part of its pipeline, it seeks to develop multiple blockbuster oncology drugs by 2030.
With the aging of key patents like Ibrance and Eliquis, Pfizer’s diverse product pipeline is essential. For long-term investors eyeing a solid healthcare business and a rewarding dividend, this could be a buy-and-hold opportunity.
3. Verizon
Verizon offers a yield of nearly 7% at present. Though the share price hasn’t impressed in recent years, the company has consistently increased its dividends for over 21 years.
In Q3 2025, Verizon’s operating revenue was $33.8 billion, up by 1.5% year-on-year, with net income rising from $3.4 billion to $5.1 billion. Free cash flow for the first nine months also increased to $15.8 billion from $14.5 billion in the same period of 2024.
The company is trimming its debt as well, with total unsecured debts dropping to $119.7 billion from $126.4 billion a year prior. Verizon earns revenue primarily from its wireless service subscriptions and device sales, along with initiatives to expand its 5G reach.
Verizon is currently undergoing a restructuring that involves laying off over 13,000 nonunion employees under new CEO Dan Schulman. This company faces tough competition in the wireless sector and has recently experienced a decline in new postpaid phone patrons. However, the recent positive growth in its prepaid segment hints at potential recovery.
For those interested in a solid dividend stock, Verizon may be worth a closer look amid the ongoing changes. Long-term investors might find some comfort in this consistent dividend payer.
