Top 5 Dividend Stocks Yielding Over 5% for Effortless Passive Income

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By Ian Cooper Published

Key Points

  • You’re just not going to make the money you want in today’s low-yielding savings accounts.

  • So, if it’s dependable income you’re after, one of the best things you can do is invest in higher-yielding stocks.

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Top 5 Dividend Stocks Yielding Over 5% for Effortless Passive Income

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If you want to keep your portfolio safe from volatility and generate passive income, you can’t go wrong with dividend stocks, especially those with yields above 5%.

After all, you’re just not going to make the money you want in today’s low-yielding savings accounts. So, if it’s dependable income you’re after, one of the best things you can do is invest in higher-yielding stocks.

In fact, here are a few you may want to consider owning today.

Realty Income 

With a yield of 5.51%, Realty Income (NYSE: O | O Price Prediction), known as “The Monthly Dividend Company,” just announced its 662nd consecutive monthly dividend of $0.269 per share. That’s payable on September 15 to shareholders of record as of September 2.

Earnings have been strong, with Q2 funds from operations (FFO) of $1.06 in line with estimates. Revenue of $1.41 billion, up 5.2% year over year, beat by $80 million. Moving forward, the company also raised its 2025 investment guidance to about $5 billion. It also raised the low-end of its AFFO (adjusted funds from operations) to a range of $4.24 to $4.28.

“As demand for durable income solutions accelerates amidst a growing retiree demographic, and as corporations increasingly seek to unlock capital from real estate, we believe our model is well-positioned to thrive,” added Summit Roy, Realty Income’s President and CEO.

Analysts at UBS just raised their price target on the stock from $62 to $66, with a buy rating.

EPR Properties 

With a yield of 6.9%, EPR Properties (NYSE: EPD) is another attractive dividend stock to consider for long-term investment. EPR just declared a monthly dividend of $0.295, which is payable on September 15 to shareholders of record as of August 29.

The company, which invests in amusement parks, movie theaters, ski resorts, and other entertainment properties, recently posted FFO of $1.26, which was in line. Revenue of $178.07 million, up 2.9% year over year, beat by $1.56 million.

As noted by Chairman and CEO Greg Silvers, “We have a robust pipeline of opportunities, including more than $100 million committed to experiential development and redevelopment projects in the coming quarters. With our healthy balance sheet and strong performing portfolio, we are well-equipped to pursue our growth objectives while maintaining our focus on creating long-term shareholder value.”

Analysts at Raymond James reiterated a strong buy rating on the EPR stock with a price target of $62 from $57.

Brookfield Infrastructure Partners 

With a yield of 5.42%, Brookfield Infrastructure Partners (NYSE: BIP) is one of the largest owners and operators of critical global infrastructure networks that facilitate the movement and storage of energy, water, freight, passengers, and data.  

About 85% of its funds from operations comes from long-term contracts. Additionally, it distributes approximately 60% to 70% of its cash flow as dividends.

It also just declared a dividend of 43 cents, which is payable on September 29 to shareholders of record as of August 29. Earnings are still strong, too. In its second quarter, its funds from operations of 81 cents beat by a penny. Revenue of $5.43 billion, up 5.6% year over year, beat by $3.48 billion.

Analysts at Jefferies reiterated a buy rating on the BIP stock with a price target of $39.

Edison International

With a yield of 6.05%, Edison International (NYSE: EIX) is one of the nation’s largest electric utility holding companies, focused on providing clean and reliable energy and energy services through its independent companies. It just paid out a quarterly dividend of $0.8275 per share on July 31 to shareholders of record as of July 7.

EIX also posted second-quarter EPS of 97 cents, which beat estimates by nine cents. Revenue of $4.54 billion, up 4.6% year over year, beat estimates by $340 million.  Plus, as noted by CEO Pedro Pizarro, “We remain confident in our ability to meet our 2025 EPS guidance and deliver a 5% to 7% core EPS CAGR through 2028.”

Verizon 

With a yield of 6.17%, Verizon (NYSE: VZ) is another solid buy opportunity.

The telecom company just paid out a quarterly dividend of $0.6775 per share on August 1 to shareholders of record as of July 10. It also posted EPS of $1.22, which beat estimates by three cents. Revenue of $34.5 billion, up 5% year over year, beat estimates by $790 million.

According to Chairman and CEO Hans Vestberg, “With momentum and a clear path forward, we are raising our full-year guidance for adjusted EBITDA, adjusted EPS, and free cash flow as we move into the second half of the year and advance toward closing the Frontier acquisition.” 

The company raised its 2025 free cash flow guidance to a range of $19.5 billion to $20.5 billion. And it raised its full-year guidance for adjusted EBITDA growth to 2.5% to 3.5%, which is an increase of about $125 million at the midpoint. 

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