The High-Quality Dividend Plays Still Paying Investors 4% and Up

In the stock market, the 4% dividend yield is a number that feels good enough to be table stakes for anyone who wants to really earn a significant amount of money and change their financial status before or during retirement. As savings accounts and treasury yields drop below 4%, looking for payouts from quality companies has become more important than ever.

Of course, the keyword here is quality, as you can find 10% yields without looking too hard, but those come with significant risk. The goal is to identify high-quality dividend plays that combine established players in this space with dividend-focused funds that have proven they can sustain and grow payouts across different market cycles.

These five holdings represent a diverse way to capture 4%+ yields under sustained conditions, and some of them are definitely household names with balance sheets that are very strong. Others on this list might be structured to return most of their cash to shareholders and still grow distributions.

Most importantly, some are paying out quarterly and others monthly, so you have a reliable income every month, but each share one more important trait in that they can all afford the dividends you are receiving over time.

Verizon Communications

A staple of the dividend world, Verizon Communications (NYSE:VZ | VZ Price Prediction), is a classic story in that it pays you quarterly like clockwork, and the business model is super simple, as communication is the bedrock of how we interact in the world today. Verizon generates cash flow from both its wireless and broadband networks, which in turn fund its dividends and future infrastructure investment.

The current 6.78% yield is high, but not dangerously so, and its payout ratio of 58.32% leaves room for future dividend growth even if business conditions tighten. Verizon’s dividend growth of 1.86% is modest to be fair, but Verizon is a mature business, and if you owned 1,000 shares, you’re looking at collecting around $2,670 annually or $690 every quarter.

Main Street Capital Corporation

A closed-end management company that focuses on investment in middle-market businesses, Main Street Capital Corporation (NYSE:MAIN) isn’t a household name yet. Thankfully, its dividend payment is a shining example of where investors should focus, especially for those who want monthly payouts, as it can feel like a paycheck or passive income.

A 7.06% yield reflects the nature of a closed-end fund, but a payout of $4.26 annually makes it all the more worthwhile. Assuming you invest enough to own 1,000 shares, you would earn approximately $355 per month, regardless of how the share price or the overall market is performing. This makes it a great hold if you want to supplement some income every month.

Enterprise Product Partners

Enterprise Products Partners (NYSE:EPD) is a midstream energy partnership that stores and transports natural gas. Its business model is fee-based, meaning revenue is largely dependent on commodity prices, but this is pretty much the point of owning this stock in that you receive steady cash no matter how oil or gas is performing.

A 6.82% dividend yield comes with a 28-year track record of dividend growth, which should give you all the confidence you need to invest. Better yet, you shouldn’t worry about its 81.68% payout ratio, which is normal for REITs and partnerships like this one.

Instead, focus on the 3.85% annual dividend growth $2.18 annual payout, which means that with 5,000 shares, you’ll be earning over $10,000 annually in predictable quarterly payments, all while resting comfortably that this stock is built to withstand recessions.

Global X SuperDividend US ETF

The Global X SuperDividend US ETF (NYSE:DIV) is one such choice for investors seeking to invest in the approximately 100 highest-yielding stocks in the US. All of these stocks are consistently screened for quality and sustainability, which is why the 7.31% dividend yield is the highest on this list.

However, it’s the 22.04% dividend growth that is the real story here, and this isn’t a fund that raises yields on stagnant payouts, but rather the companies it’s holding are, in some cases, aggressively raising distributions. Better yet, having the monthly payout here is a major benefit as you get 12 payments instead of 4, which is transformative for those who want to own a dividend fund.

With a payout ratio of 87.51%, the fund is paying out most of what it receives, but with only 22% growth, there is still room for future increases. If you owned 10,000 shares, you’re looking at around $1,050 a month in earnings, which is a number that is hard to ignore.

State Street SPDR Portfolio S&P 500 High Dividend ETF

The State Street SPDR Portfolio S&P 500 High Dividend ETF (NYSE:SPYD) is home to the hundred-plus highest-yielding stocks in the S&P 500, all of which are equally weighted to prevent overconcentration. What this means for you as an investor is that you are not betting on utility or financial sectors alone, but instead get exposed to multiple sectors all within large-cap stocks.

The 4.52% dividend yield is pretty much right where you want it to be, high enough to matter, but low enough to allow it to be sustainable over time. Dividend growth of 5.01% means income is outpacing inflation, which is weighted equally, preventing this fund from becoming top-heavy in any single sector.

If you invest enough to buy 5,000 shares, you’re earning roughly $9,800 annually, which adds up quickly when combined with the rest of the investments on this list. Moreover, investors looking to be exposed to the S&P 500 without overthinking individual stock picks should recognize that the State Street SPDR Portfolio S&P 500 High Dividend ETF is a set-it-and-forget-it choice.