High yield dividend stocks can be risky, but these five proven companies offer both strong income (5-7% yields) and long-term safety.
If you’re looking for stocks that pay high dividends without taking big risks, you’re in the right place. While some high-yield stocks can be dangerous, these five companies have strong cash flow, reasonable payout ratios, and long histories of paying shareholders.
Whether you’re investing for retirement income or just want steady cash from your portfolio, these stocks are worth considering.
1. Realty Income (NYSE: O) – Top Tier High Yield Dividend Stock
Current Yield: 5.6%
Dividend Growth: 110+ straight quarters (nearly 30 years)
Realty Income is a real estate investment trust (REIT) that owns over 15,600 properties, mostly leased to essential businesses like pharmacies and convenience stores.
Why It’s Reliable:
- Pays dividends every month (most stocks pay quarterly)
- Only uses 75% of its cash flow for dividends (sustainable)
- Strong tenant base with 98% rent collection even in tough times
Best For: Investors who want predictable monthly income.
2. Altria (NYSE: MO) – The King of High Yield Dividend Stocks
Current Yield: 6.7%
Dividend Growth: 50+ straight years
Altria owns Marlboro and other tobacco brands. Even though fewer people smoke, the company raises prices to keep profits stable.
Why It’s Reliable:
- Pays out 80% of cash flow (still manageable)
- Owns a big stake in Anheuser-Busch (Budweiser) as a backup
- Testing new products like nicotine pouches for future growth
Best For: Investors who want high income + long-term dividend history.
3. British American Tobacco (NYSE: BTI) – Global High-Yield Dividend Play
Current Yield: 6.8%
Dividend Growth: Consistent for decades
Unlike Altria, British American Tobacco sells products worldwide and is making progress in vaping and smokeless alternatives.
Why It’s Reliable:
- Only pays 66% of cash flow as dividends (lots of safety room)
- Less dependent on the U.S. market
- Faster shift away from traditional cigarettes
Best For: Investors who want global exposure + high yield.
4. Verizon (NYSE: VZ) – Safest High-Yield Dividend Stock
Current Yield: 6.1%
Dividend Growth: 21+ straight years
Verizon is one of the biggest U.S. wireless carriers. People pay their phone bills like utilities, making it a stable business.
Why It’s Reliable:
- Only 58% of earnings go to dividends (very safe)
- 5G expansion could boost future profits
- Generates over $17 billion in annual cash flow
Best For: Investors who want low-risk income from an essential service.
5. Enbridge (NYSE: ENB) – Energy High-Yield Dividend Champion
Current Yield: 5.7%
Dividend Growth: 28+ straight years
Enbridge operates pipelines and utilities that transport oil and gas across North America. Its business is regulated, meaning steady profits.
Why It’s Reliable:
- Pays 60-70% of cash flow as dividends (sustainable)
- Kept raising dividends even during COVID and recessions
- Expanding into wind and solar energy
Best For: Investors who want energy dividends without oil price swings.
Which Stock is Right for You?
| Stock | Yield | Payout Ratio | Key Strength | Best For |
|---|---|---|---|---|
| Realty Income (O) | 5.6% | 75% | Monthly payouts | Steady income |
| Altria (MO) | 6.7% | 80% | 50+ years of raises | High yield + history |
| British American (BTI) | 6.8% | 66% | Global business | Worldwide diversification |
| Verizon (VZ) | 6.1% | 58% | Telecom stability | Low-risk cash flow |
| Enbridge (ENB) | 5.7% | 60-70% | Energy infrastructure | Inflation protection |
Key Takeaway: These high yield dividend stocks offer rare combinations of income and safety. For investors targeting high yield dividend stocks in 2025, this portfolio delivers both yield and peace of mind.
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Frequently Asked Questions
Q: Are high-yield dividend stocks risky?
A: Not always—these five companies have strong finances and long track records.
Q: Which stock has the safest high yield dividend?
A: Verizon (VZ) has the lowest payout ratio (58%), making it very secure.
Q: Which stock pays monthly high yield dividends?
A: Realty Income (O) pays every month, unlike most quarterly-paying stocks.
Final Thought: If you want safe, high yield dividends in 2025, these five stocks are strong choices. Consider diversifying across a few to reduce risk and maximise income.
Mastering the Market: Your Guide to Successful Stock Investing 2025
(Note: Always do your own research before investing. Past performance doesn’t guarantee future results.)
