5% and Higher Yielding Stocks With Low PEs for Total Retirement Safety

By Lee Jackson Published Sep 10, 8:42AM EDT

Quick Read

With the distinct possibility of a September rate cut, 5% and higher yielding dividend stocks could catch some serious buying.
Safe stocks yielding 5% and more are the perfect additions to growth and income portfolios now.
With all the major indices at or near all-time highs, safe selections make sense now with fall on the way, which typically can be a rough time of year for the stock market.

Follow 24/7 Wall St. on Google

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

5% and Higher Yielding Stocks With Low PEs for Total Retirement Safety — © Dean Drobot and ChristianChan from Getty Images

While reaching retirement age can be both a blessing and a curse, relying on the U.S. government to provide for your needs is not the best idea. The full retirement age is 66 if you were born from 1943 to 1954. The full retirement age increases gradually for those born from 1955 to 1960, reaching 67. For anyone born in 1960 or later, full retirement benefits are payable at age 67. Baby Boomers and those nearing retirement are likely aware that Social Security alone will not provide a comfortable retirement, so passive income can be a significant help in increasing overall monthly income.

According to the Internal Revenue Service (IRS), passive income generally includes earnings from rental activity or any trade, business, or investment in which the individual does not materially participate. It can also include income from limited partnerships, stocks, bonds, and other similar enterprises in which the investor is not actively involved. The more passive income can help cover rising costs, such as mortgages, insurance, taxes, and other expenses, the easier it is for investors to set aside money for future needs as they prepare for retirement. Dependable recurring dividends, especially those paid monthly, are a recipe for success.

We constantly screen our 24/7 Wall St. passive income stock research database for the best ideas. Five stocks that most investors are very familiar with are ideal choices for growth and income investors seeking reliable dividend passive income, as well as some growth potential to keep pace with inflation. All are rated Buy at the top Wall Street firms we cover, all yield 5% or more, and all of them come with very low price-to-earnings metrics that make them outstanding additions to quality stock portfolios.

Why do we cover low price-to-earnings dividend stocks?

Since 1926, dividends have contributed approximately 32% of the total return for the S&P 500, while capital appreciation has contributed 68%. Therefore, sustainable dividend income and capital appreciation potential are essential for total return expectations. A study by Hartford Funds, in collaboration with Ned Davis Research, found that dividend stocks delivered an annualized return of 9.18% over the past 50 years (1973 to 2023). Over the same timeline, this was more than double the annualized return for non-payers (3.95%).

Energy Transfer

Energy Transfer L.P. (NYSE: ET | ET Price Prediction) is one of North America’s largest and most diversified midstream energy companies and trades at a low 11 times estimated 2026 earnings. This top master limited partnership is a safe option for investors seeking energy exposure and income, as the company pays a substantial distribution. Energy Transfer owns and operates one of the largest and most diversified portfolios of energy assets in the United States, with a strategic footprint in all of the major domestic production basins.

The company is a publicly traded limited partnership with core operations that include:

Complementary natural gas midstream, intrastate, and interstate transportation and storage assets
Crude oil, natural gas liquids (NGL), and refined product transportation and terminalling assets
NGL fractionation
Various acquisition and marketing assets

Following the acquisition of Enable Partners in December 2021, Energy Transfer owns and operates over 114,000 miles of pipelines and related assets in 41 states, spanning all major U.S. producing regions and markets. This further solidifies its leadership position in the midstream sector.

Through its ownership of Energy Transfer Operating, formerly known as Energy Transfer Partners, the company also owns Lake Charles LNG, the general partner interests, the incentive distribution rights, and 28.5 million standard units of Sunoco L.P. (NYSE: SUN), and the public partner interests and 39.7 million standard units of USA Compression Partners L.P. (NYSE: USAC).

J.P. Morgan has a Buy rating for the shares with a $23 target price.

Franklin Resources

Franklin Resources Inc. (NYSE: BEN), more commonly known as Franklin Templeton, is one of the world’s largest investment management firms. This company is a mutual fund powerhouse that pays a safe dividend. Franklin Resources is among the most prominent global money managers. The firm markets mutual funds and institutional separate accounts under the Franklin, Templeton, and Mutual Series brands. At times, 50% of its sales are from outside the US, an advantage given the maturing U.S. market.

Franklin Resources offers its products and services under the brands of:

Franklin
Templeton
Franklin Mutual Series
Franklin Bissett
Fiduciary Trust
Darby
Balanced Equity Management
K2
LibertyShares
Edinburgh Partners

The 2023-2024 bull market was a strong tailwind for the company; however, the February to April 2025 sell-off has made the shares appear incredibly cheap. While withdrawals from Baby Boomers may be a concern, the path forward for the rest of 2025 and next year also looks solid as the shares have rebounded from the April lows. Trading at just 11 times estimated 2026 earnings, this quality company is a strong value buy now.

Goldman Sachs has a Buy rating with a $23 target price.

Shutterstock

Trading at a ridiculous 5.3 times estimated 2026 earnings, this may be a total return home run over the next year. Shutterstock Inc. (NYSE: SSTK) provides a global creative platform for connecting brands and businesses to quality content. Its content is distributed to customers under various brands, including:

Shutterstock
Pond5
TurboSquid
PicMonkey
PremiumBeat
Splash News
Bigstock
Envato
Offset

The Shutterstock brand includes various content types, such as images, footage, music, and editorial.

Pond5 is a video-first content marketplace that expands the company’s content offerings across footage, image, and music.

TurboSquid operates a marketplace that offers more than one million 3D models, and a 2-dimensional marketplace derived from 3D objects.

PicMonkey is an online graphic design and image editing platform.

PremiumBeat offers music tracks and provides producers, filmmakers, and marketers the ability to search handpicked production music from the composers.

Splash News provides editorial image and video content across celebrity and red carpet events.

Envato offers digital creative assets and templates.

Needham has a Buy rating with a $25 target price.

Verizon

Verizon Communications Inc. (NYSE: VZ), commonly known as Verizon, is an American multinational telecommunications company that continues to offer tremendous value. It trades 9.13 times its estimated 2026 earnings and is up almost 10% in 2025. Verizon provides a range of communications, technology, information, and entertainment products and services to consumers, businesses, and government entities worldwide.

It operates in two segments:

Verizon Consumer Group
Verizon Business Group

The Consumer segment provides wireless services across the United States through Verizon and TracFone networks, as well as through wholesale and other arrangements.

It also provides fixed wireless access (FWA) broadband through its wireless networks and related equipment and devices, such as:

Smartphones
Tablets
Smartwatches and other wireless-enabled connected devices

The segment also offers wireline services in the Mid-Atlantic and northeastern United States through its fiber-optic network, Verizon Fios product portfolio, and copper-based network.

The Business segment provides wireless and wireline communications services and products, including:

FWA broadband
Data
Video and conferencing
Corporate networking
Security and managed network
Local and long-distance voice

Network access services to deliver various IoT services and products to businesses, government customers, and wireless and wireline carriers in the United States and internationally.

Tigress Financial has given the company a Buy rating and a price target of $56.

VICI Properties

Vici Properties Inc. (NYSE: VICI) is a real estate investment trust based in New York City that specializes in casino and entertainment properties. Trading at 11.8 times estimated 2026 earnings, this is one of the top picks across Wall Street in the net lease group and is ideal for more conservative investors seeking gaming exposure and a substantial dividend. VICI Properties is an S&P 500 experiential REIT with one of the largest portfolios of market-leading gaming, hospitality, and entertainment destinations, including three iconic entertainment facilities on the Las Vegas Strip:

Caesars Palace Las Vegas
MGM Grand
The Venetian Resort Las Vegas

VICI Properties owns 93 experiential assets across a geographically diverse portfolio of 54 gaming properties and 39 other experiential properties across the United States and Canada. The portfolio comprises approximately 127 million square feet and features approximately 60,300 hotel rooms and over 500 restaurants, bars, nightclubs, and sportsbooks.

Its properties are occupied by industry-leading gaming, leisure, and hospitality operators under long-term, triple-net lease agreements.

VICI Properties has a growing array of real estate and financing partnerships with leading operators in other experiential sectors, including:

Bowlero
Cabot
Canyon Ranch
Chelsea Piers
Great Wolf Resorts
Homefield
Kalahari Resorts

VICI Properties also owns four championship golf courses and 33 acres of undeveloped and underdeveloped land adjacent to the Las Vegas Strip.

Truist Financial has a Buy rating with a $38 target price.

Rate Cuts Are Coming: Grab Five of the Highest-Yielding S&P 500 Stocks Now

About the Author Lee Jackson →

Lee Jackson has covered Wall Street analysts' equity and debt research and equity strategy daily for 24/7 Wall St. since 2012. His broad and diverse career, which included a stint as the creative services director at the NBC affiliate in Austin, Texas, gives him unique insight into the financial industry and world.

Lee Jackson's journey in the financial industry spans over 30 years, with nearly two decades as an institutional equity salesperson at Bear Stearns, Lehman Brothers, and Morgan Stanley. His career was marked by his presence on the sell side during pivotal Wall Street events, from the dot.com rise and bubble to the Long Term Capital Management debacle, 9/11, and the Great Recession of 2008. This is a testament to his resilience and adaptability in the face of market volatility.

Lee Jackson’s practical financial industry experience, acquired from a career at some of the biggest banks and brokerage firms, is complemented by a lifetime of writing on various platforms. This unique combination allows him to shed light on the intricacies and workings of Wall Street in a way that only someone with deep insider experience and knowledge can. Moreover, his extensive network across Wall Street continues to provide direct access for him and 24/7 Wall St., a privilege few firms enjoy.

Since 2012, Jackson’s work for 24/7 Wall St. has been featured in Barron’s, Yahoo Finance, MarketWatch, Business Insider, TradingView, Real Money, The Street, Seeking Alpha, Benzinga, and other media outlets. He attended the prestigious Cranbrook Schools in Bloomfield Hills, Michigan, and has a degree in broadcasting from the Specs Howard School of Media Arts.