In this article, we will take a look at some of the best safe dividend stocks with yields above 5%.
Dividend-paying stocks have long held a special place among investors, often delivering stronger returns than the broader market over time. Within this strategy, there’s an ongoing debate between those prioritizing high yields and others who focus on companies with a steady track record of dividend growth. While analysts tend to favor firms that consistently boost shareholder payouts, the allure of high yields remains strong. Experts caution, however, that investors should avoid yield traps and instead target companies that combine attractive yields with reliable dividend increases.
A study by Newton Investment Management lends weight to the case for high-yield stocks. It found that during inflationary periods from 1940 to 2021, high-yield dividend stocks outpaced the broader market. The report also showed that portfolios with high-dividend-yielding stocks performed better than those with little or no dividend exposure. Specifically, high-yield portfolios outperformed low-yield portfolios by 199 basis points and zero-yield portfolios by 330 basis points in terms of value-weighted returns. However, the study didn’t explore the specific market conditions behind these results, offering more of a general overview.
Further backing the benefits of high-yield stocks, Hartford Funds conducted research looking at risk and return over the long haul. From December 1969 to March 2024, high-yield portfolios returned an average of 12.3% annually, compared to 10.5% for mid-yield and 9.7% for low-yield portfolios. When measured by annualized standard deviation—a common gauge of volatility—high-yield portfolios also showed lower risk (14.1%) than their mid-yield (16%) and low-yield (20.8%) counterparts.
Analysts note that dividend stocks can offer a layer of stability during market turbulence, especially when investors prioritize income. Still, they advise sticking to high-yield stocks only if they come with a proven record of dividend growth.
That said, this isn’t a hard rule. Many companies manage to offer both solid yields and consistent dividend increases. High yields, in themselves, aren’t a red flag—in fact, dividend yield plays a vital role in income-focused investing by showing the income potential relative to a stock’s price.
Amid the growing excitement around AI and tech stocks, dividend-paying companies have somewhat fallen off investors’ radar. However, the recent market downturn has brought them back into focus. Since the beginning of 2025, the Dividend Aristocrats Index, which tracks the performance of companies with 25 consecutive years of dividend growth, has fallen by over 2% while the broader market has slipped by nearly 10%.
Over the long haul, the strength of these dividend-focused stocks becomes even more evident. A report by S&P Global revealed that from January 2000 through February 2025, the Dividend Aristocrats Index outpaced its benchmark by an average of 1.59% annually. This consistent outperformance is largely credited to the solid fundamentals of the companies that make up the index.
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Our Methodology:
For this list, we scanned Insider Monkey’s database of over 1,000 hedge funds as of Q4 2024 and picked dividend stocks with strong dividend policies and sound financials. From that group, we picked stocks that have yields above 5%, as of April 20. The stocks are ranked in ascending order of their dividend yields.
At Insider Monkey, we are obsessed with hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. VICI Properties Inc. (NYSE:VICI)
Dividend Yield as of April 20: 5.32%
VICI Properties Inc. (NYSE:VICI) is an American real estate investment trust company that mainly invests in casinos and entertainment properties. The company holds a valuable portfolio of experiential real estate, which includes three of the most well-known casinos on the Las Vegas Strip, such as Caesars Palace Las Vegas, MGM Grand, and the Venetian Resort. These properties are leased out to operators through long-term triple net (NNN) lease agreements. This arrangement offers the real estate investment trust (REIT) a reliable and steadily increasing stream of rental income, supporting its ability to consistently pay dividends.
In the fourth quarter of 2024, VICI Properties Inc. (NYSE:VICI) posted a 4.7% uptick in revenue, reaching $976 million. However, net income available to common shareholders dropped by 17.8% year-over-year to $614.6 million, with earnings per share slipping 19.2% to $0.58. The decline was primarily tied to adjustments in the CECL allowance for the quarter ending December 31, 2024. During the same period, the company also formed a new partnership with Indigenous Gaming Partners (IGP) related to IGP’s purchase of PURE Canadian Gaming’s assets, which involved updates to their existing master lease.
On March 6, VICI Properties Inc. (NYSE:VICI) announced a quarterly dividend of $0.4325 per share, continuing its consistent payout from recent quarters. Since going public in 2018, VICI has steadily raised its dividend. The company ended fiscal 2024 with a solid cash reserve of $524.6 million and returned $456.7 million to shareholders via dividends in the fourth quarter alone. The stock has a dividend yield of 5.32%, as of April 20. It is among the best dividend stocks with high yields.
9. NNN REIT, Inc. (NYSE:NNN)
Dividend Yield as of April 20: 5.57%
NNN REIT, Inc. (NYSE:NNN) is an American real estate investment trust company, headquartered in Florida. The company follows a low-risk investment approach that results in steady and reliable growth. It concentrates on acquiring single-tenant net lease retail properties. These properties are generally modest in size—averaging about 11,000 square feet and costing roughly $3 million—and are located in prime, high-traffic areas. Even if a current tenant decides not to renew their lease, the desirable locations ensure ongoing demand from potential new occupants. The stock has surged by nearly 4% since the start of 2025.
In the fourth quarter of 2024, NNN REIT, Inc. (NYSE:NNN) reported revenue of $218.5 million, which showed a 1.04% growth from the same period last year. The revenue also beat analysts’ estimates by $960,000. The company’s net earnings for the quarter came in at $97.9 million, up from $96.7 million in the prior-year period. It maintained high occupancy levels at 98.5%, with a weighted average remaining lease term of 9.9 years, as of December 31, 2024.
NNN REIT, Inc. (NYSE:NNN)’s cash position also remained stable in the most recent quarter. It had over $8.7 million available in cash and cash equivalents at the end of the quarter, up from $1.2 million in the same quarter last year. This strong cash position has enabled the company to raise its payouts for 35 consecutive years, which makes it one of the best dividend stocks on our list. The company offers a quarterly dividend of $0.58 per share and has a dividend yield of 5.57%, as of April 20.
8. Canadian Natural Resources Limited (NYSE:CNQ)
Dividend Yield as of April 20: 5.69%
Canadian Natural Resources Limited (NYSE:CNQ) is a Canadian oil and natural gas company, having operations in Western Canada, the UK portion of the North Sea, and Offshore Africa. Analysts believe that the company is well-positioned to benefit from shifts in global oil demand and supply, thanks to its vast reserves and diversified asset base. However, its long-term performance will largely depend on external influences like trade policies and environmental regulations.
The year 2024 marked a significant milestone for Canadian Natural Resources Limited (NYSE:CNQ), as it reached a record-high average production of more than 1.36 million barrels of oil equivalent per day. This included its highest-ever annual liquids output, which topped one million barrels daily. Financially, the company outperformed expectations, posting adjusted earnings of C$2.34 per share in the fourth quarter, beating analyst forecasts of C$2.15.
Canadian Natural Resources Limited (NYSE:CNQ) also maintained a solid financial position. It generated over $3.4 billion in operating cash flow during the latest quarter, up from $3 billion previously, and ended fiscal 2024 with $4.5 billion in free cash flow. This strong cash generation enabled the company to return $1.7 billion to shareholders via dividends and stock buybacks.
In March, Canadian Natural Resources Limited (NYSE:CNQ) hiked its quarterly dividend by 4.4% to C$0.5875 per share. Through this increase, the company stretched its dividend growth streak to 25 years, which places it on our list of the best safe dividend stocks with yields above 5%. As of April 20, the stock has a dividend yield of 5.69%.
7. KeyCorp (NYSE:KEY)
Dividend Yield as of April 20: 5.75%
KeyCorp (NYSE:KEY) ranks seventh on our list of the best dividend stocks with high yields. The American retail banking company offers a wide range of retail and commercial banking services to its consumers. The company recently announced its earnings for the first quarter of 2025 and posted revenue of $1.8 billion. The revenue showed a 16% growth on a YoY basis and also beat analysts’ estimates by $25.2 million. The company’s net interest income also grew by 4% YoY.
KeyCorp (NYSE:KEY)’s net interest margin rose by 17 basis points, reaching 2.58%. On an adjusted basis, pre-provision net revenue saw an increase of over $90 million compared to the previous quarter. Credit quality remained solid, with credit migration trends improving for the fifth quarter in a row.
Management attributed the strong financial performance to ongoing momentum with both existing clients and new prospects. Client deposits rose 4% year-over-year, accompanied by continued improvement in deposit betas. Meanwhile, commercial loan balances increased by $1.2 billion from year-end levels.
In addition to its strong performance this quarter, KeyCorp (NYSE:KEY) has also been a solid dividend payer. The company has been making regular dividend payments to shareholders since 1985. Currently, it pays a quarterly dividend of $0.205 per share for a dividend yield of 5.75%, as recorded on April 20.
6. Enbridge Inc. (NYSE:ENB)
Dividend Yield as of April 20: 5.86%
Enbridge Inc. (NYSE:ENB) is a multinational pipeline and energy company, headquartered in Canada. The company has emerged as one of the largest natural gas distributors in North America after recently acquiring three utilities from Dominion Energy. Much like its fee-based pipeline operations, the company’s regulated utility business delivers steady cash flow, with the added advantage of long-term growth visibility due to government oversight in capital planning.
In 2024, Enbridge Inc. (NYSE:ENB) posted adjusted earnings of $6.04 billion, up from $5.74 billion in the prior year. Its $14 billion purchase of the US-based natural gas utilities not only expanded its footprint but also opened up new avenues for growth in 2025 and beyond. As a result of the deal, Enbridge now holds the distinction of being the largest natural gas utility operator in North America, with a network that supplies roughly 20% of the natural gas used in the US—a strategic position as demand grows, especially from tech companies building gas-powered facilities to support energy-intensive AI data centers.
Enbridge Inc. (NYSE:ENB) also maintained a solid financial footing, generating $12.6 billion in operating cash flow for the year, compared to $14.2 billion in 2023. Its distributable cash flow rose 6% year-over-year, climbing to $12.0 billion from $11.3 billion. It currently pays a quarterly dividend of C$0.9425 per share and has a dividend yield of 5.86%, as of April 20. It is one of the best dividend stocks on our list as the company has been growing its payouts for 30 consecutive years.
5. Verizon Communications Inc. (NYSE:VZ)
Dividend Yield as of April 20: 6.15%
Verizon Communications Inc. (NYSE:VZ) is an American telecommunications company, based in New York. The company is aiming to accelerate its broadband expansion by acquiring Frontier Communications Parent, a leading US provider focused solely on fiber. According to Verizon, this acquisition would boost its broadband network by around 10 million connections by 2026, the anticipated closing year of the deal.
In parallel, Verizon Communications Inc. (NYSE:VZ) is also stepping into the artificial intelligence space through its AI Connect platform. This service allows major tech companies, including Google’s parent Alphabet, to deliver AI capabilities to edge devices—such as smartphones—via Verizon’s wireless network.
For the fourth quarter of 2024, Verizon Communications Inc. (NYSE:VZ) posted solid financials, reporting $35.7 billion in revenue, a 1.6% increase compared to the same period last year. This growth was fueled by rising customer numbers across both wireless and internet services. In its mobile wireless segment alone, the company added 568,000 net postpaid phone subscribers, up from 449,000 a year earlier, with segment revenue climbing 3.1% to $20 billion—marking its 18th consecutive quarter of growth.
Verizon Communications Inc. (NYSE:VZ) continues to stand out for its robust cash generation and consistent dividend performance. In fiscal 2024, it brought in $37 billion in operating cash flow and reported $19.8 billion in free cash flow, reinforcing its appeal to income-focused investors. The company offers a quarterly dividend of $0.6775 per share and has a dividend yield of 6.15%, as recorded on April 20. VZ’s dividend growth spans 18 years, which makes it one of the best dividend stocks on our list.
4. Enterprise Products Partners L.P. (NYSE:EPD)
Dividend Yield as of April 20: 6.9%
Enterprise Products Partners L.P. (NYSE:EPD) is a Texas-based midstream natural gas and crude oil and pipeline company. The company owns a wide range of midstream energy infrastructure, including pipelines, storage facilities, and processing and transportation systems. Since the company primarily earns revenue through usage fees rather than commodity prices, its performance is more closely tied to energy demand than to market price fluctuations. Given the essential role energy plays in daily life, demand tends to stay resilient regardless of broader global conditions.
In the fourth quarter of 2024, Enterprise Products Partners L.P. (NYSE:EPD) reported revenue of $14.2 billion, surpassing analysts’ estimates by $74.5 million. The company generated $1.9 billion in operating income and posted a net income of $1.63 billion.
Cash flow remained strong, with operating cash flow topping $2.3 billion and adjusted free cash flow coming in at $336 million for the quarter. Thanks to this financial stability, Enterprise Products Partners L.P. (NYSE:EPD) announced its 27th straight year of dividend growth in January 2025. The company pays a quarterly dividend of $0.535 per share and has an attractive dividend yield of 6.9%, as recorded on April 20.
3. Altria Group, Inc. (NYSE:MO)
Dividend Yield as of April 20: 7.02%
Altria Group, Inc. (NYSE:MO) is a Virginia-based tobacco company that manufactures a wide range of related products, including cigarettes and other nicotine products. The company also focuses on nicotine products and has a business model that tends to hold up well during periods of market and economic uncertainty. Even though the use of traditional cigarettes is declining in the US, overall demand for nicotine remains steady. Holding nearly half of the US market, the company enjoys significant advantages. These include cost efficiencies from its scale, strong negotiating power with retailers due to its control of top-selling brands like Marlboro and JUUL, and the ability to invest more heavily than competitors in newer nicotine alternatives, such as smokeless products.
In the final quarter of 2024, Altria Group, Inc. (NYSE:MO) reported revenue of $5.11 billion, a year-over-year increase of 1.63% that beat analyst forecasts by $59.6 million. The growth was supported by improved margins and solid performance across its flagship tobacco brands. The company also continued to channel funds into initiatives that support long-term expansion. For 2025, it expects adjusted diluted EPS to come in between $5.22 and $5.37, implying 2% to 5% growth over its 2024 earnings of $5.12 per share.
Known for its strong focus on shareholder returns, Altria Group, Inc. (NYSE:MO) distributed $6.8 billion in dividends during fiscal 2024 and has now increased its dividend for 55 consecutive years. The company’s quarterly dividend comes in at $1.02 per share and has a dividend yield of 7.02%, as of April 20.
2. Franklin Resources, Inc. (NYSE:BEN)
Dividend Yield as of April 20: 7.72%
Franklin Resources, Inc. (NYSE:BEN) ranks second on our list of the best dividend stocks with yields above 5%. As of March 31, the company reported preliminary assets under management (AUM) totaling $1.53 trillion, reflecting a 2.4% drop from the previous month. This decline was attributed to market headwinds and preliminary long-term net outflows of $4 billion, which included $7 billion in outflows from Western Asset Management.
Despite this, Franklin Resources, Inc. (NYSE:BEN) saw a 34% year-over-year increase in long-term inflows during the first quarter of fiscal 2025, excluding reinvested distributions. It recorded $17 billion in net inflows across various investment platforms. Although long-term net outflows—excluding Western Asset—reached $50 billion, the company still posted $18 billion in total net inflows across all asset categories.
Franklin Resources, Inc. (NYSE:BEN) has a solid dividend policy, having raised its payouts for 49 consecutive years. The company offers a quarterly dividend of $0.32 per share and has a dividend yield of 7.72%, as recorded on April 20.
1. Pfizer Inc. (NYSE:PFE)
Dividend Yield as of April 20: 7.77%
Pfizer Inc. (NYSE:PFE) is an American multinational pharmaceutical and biotech company that offers a wide range of related products and services to its consumers. On April 14, the company informed investors that it would discontinue the development of danuglipron, its oral GLP-1 drug candidate for weight loss. While the decision to halt the danuglipron program is a setback, it doesn’t mark the end of Pfizer’s pursuit of breakthrough treatments in the weight-management space. The company is still advancing another option—an oral GIPR antagonist, currently in phase 2 trials and referred to as PF-07976016. More updates on this candidate are expected in the future.
Pfizer Inc. (NYSE:PFE) has been stepping up its efforts in the oncology space, highlighted by its $43 billion acquisition of Seagen, which aims to strengthen its cancer treatment portfolio. The company is targeting substantial growth in this segment over the next five years, with plans to double the number of patients it reaches by 2030. Pfizer also intends to launch at least three cancer drugs that each have the potential to bring in over $1 billion annually. This strategy is already yielding results, with oncology revenue rising 25% in 2024.
Known for its reliable dividend history, Pfizer Inc. (NYSE:PFE) continues to reward shareholders. The company currently pays a quarterly dividend of $0.43 per share, following a 2.4% increase announced in December 2024, which marked its 15th straight year of dividend growth. As of April 20, the stock has a dividend yield of 7.77%.
Overall, Pfizer Inc. (NYSE:PFE) ranks first on our list of the safe dividend stocks with yields over 5%. While we acknowledge the potential of PFE as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than PFE but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the dirt cheap dividend stock.
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