4 Top Dividend Stocks Yielding More Than 4% to Buy for Passive Income Right Now
High-quality, high-yielding dividend stocks can provide you with a growing passive income stream. Many companies delivered decades of consistent dividend growth, trends that seem unlikely to end. Here are four top stocks with dividends yielding more than 4% (over three times higher than the S&P 500‘s 1.2% yield) that you can buy now for bankable…
High-quality, high-yielding dividend stocks can provide you with a growing passive income stream. Many companies delivered decades of consistent dividend growth, trends that seem unlikely to end.
Here are four top stocks with dividends yielding more than 4% (over three times higher than the S&P 500‘s 1.2% yield) that you can buy now for bankable passive income.
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Clearway Energy(NYSE: CWEN)(NYSE: CWEN.A) is a leader in generating clean power. It owns a large portfolio of renewable energy and natural gas generation assets secured by long-term power purchase agreements with utilities and large corporations. These contracts produce stable cash flow, helping support its 4.7%-yielding dividend.
The company aims to retain about 30% of its stable cash flows, which it reinvests in additional income-producing clean power assets. Clearway has secured several investments that should enter commercial service over the next few years, giving it enhanced growth visibility. The company expects to grow its cash flow per share at a 7% to 8% compound annual rate through 2030 and at a 5% to 8%+ rate thereafter. That should give Clearway plenty of power to continue increasing its dividend.
Energy Transfer(NYSE: ET) is a master limited partnership (MLP) that operates energy midstream infrastructure, including pipelines, processing plants, and export terminals. These assets generate lots of stable cash flow as fee-based revenue frameworks support about 90% of its earnings. The MLP, which sends a Schedule K-1 Federal tax form each year, has a yield of 7.1%.
The MLP retains nearly half of its stable cash flow to reinvest in the partnership. It plans to invest at least $5 billion this year into expansion projects, primarily to expand its natural gas pipeline systems. Energy Transfer has secured projects that should come online through 2030. These projects will give the MLP the fuel to grow its high-yielding payout by 3% to 5% each year.
Realty Income(NYSE: O) is one of the world’s largest real estate investment trusts (REITs). It owns a diversified portfolio of retail, industrial, gaming, data center, and other properties secured by long-term net leases with many of the world’s leading companies. Net leases provide stable cash flow because tenants cover all property operating costs. This steady cash helps support Realty Income’s 4.9%-yielding monthly dividend.
The REIT retains about a quarter of its stable cash flow to reinvest in additional income-producing real estate. It also has one of the best balance sheets in the REIT sector, further supporting new investments. Realty Income invests billions of dollars into new properties each year. This steady portfolio expansion has enabled the REIT to consistently raise its dividend. It has increased its dividend every year for more than three decades, including the past 113 quarters in a row.
Verizon(NYSE: VZ) is a leading provider of mobile and internet services. It generates lots of recurring revenue as customers pay their cellphone and internet bills. That gives it the cash to cover its 5.8%-yielding dividend.
The telecom giant expects to generate $21.5 billion in free cash flow after capital expenditures this year, 7% more than 2025’s level. That’s roughly $10 billion above what it pays in dividends each year. That enables the company to retain cash to repay debt following its $20 billion all-cash acquisition of Frontier. That deal significantly expanded the company’s fiber network, enhancing its ability to provide bundled mobile and internet services to more customers. Further fortifying its already strong balance sheet will give it even more capacity to make strategic investments as opportunities arise.
Verizon‘s growing free cash flow should also support continued dividend increases. The company extended its growth streak to 19 years in a row late last year.
Clearway Energy, Energy Transfer, Realty Income, and Verizon pay high-yielding and steadily rising dividends. The quartet back their payouts with stable cash flows and rock-solid financial profiles, giving them the capacity to continue growing. These durable features make them ideal dividend stocks to buy and hold for a potential lifetime of passive income.
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Matt DiLallo has positions in Clearway Energy, Energy Transfer, Realty Income, and Verizon Communications. The Motley Fool has positions in and recommends Realty Income. The Motley Fool recommends Verizon Communications. The Motley Fool has a disclosure policy.
4 Top Dividend Stocks Yielding More Than 4% to Buy for Passive Income Right Now was originally published by The Motley Fool
