The stock market has experienced a significant slump this year, primarily due to concerns surrounding tariffs and the potential for a recession. However, one positive outcome of this sell-off is that lower stock prices have caused dividend yields to rise. This presents an opportunity for investors to lock in attractive dividend yields of 5% or more on high-quality companies, providing them with a source of durable passive income even in the event of an economic downturn.
Here are five safe dividend stocks that investors can consider buying right now for resilient dividend income:
1. Dominion Energy (NYSE: D) currently offers a dividend yield of 5.1%. As a utility company that supplies electricity and natural gas to customers in Virginia and the Carolinas, Dominion Energy generates stable cash flow supported by government-regulated rates and consistent demand for energy. The company is investing heavily in expanding its power generation capabilities to meet future electricity demand, which is expected to drive earnings growth and support its high dividend yield.
2. NNN REIT (NYSE: NNN) boasts a dividend yield of 5.8%. This real estate investment trust owns a portfolio of single-tenant net lease retail properties, providing a steady stream of rental income. With a conservative payout ratio and a focus on acquiring income-generating properties, NNN REIT has a track record of increasing its dividend payout year after year.
3. Brookfield Infrastructure (NYSE: BIPC)(NYSE: BIP) offers a dividend yield of around 5%. This global infrastructure operator generates stable cash flow supported by government-regulated rate structures and long-term contracts. By reinvesting retained cash flow into growing its business and upgrading its infrastructure portfolio, Brookfield Infrastructure aims to achieve consistent dividend growth of 5% to 9% annually.
4. Verizon (NYSE: VZ) currently has a dividend yield of 6.2%. As a telecom giant, Verizon generates recurring cash flow from wireless and broadband services. The company’s strong balance sheet enables it to invest in expanding its infrastructure, such as fiber and 5G networks, which should drive future cash flow growth and support continued dividend increases.
5. Oneok (NYSE: OKE) offers a dividend yield of 5%. This pipeline giant generates stable cash flow from its energy infrastructure assets, supported by government-regulated rate structures and long-term contracts. By investing in organic growth projects and strategic acquisitions, Oneok aims to grow its dividend by 3% to 4% annually while maintaining a strong balance sheet.
Overall, the recent stock market sell-off has created an opportunity for investors to secure attractive dividend yields from high-quality companies. By carefully selecting safe dividend stocks like Dominion Energy, NNN REIT, Brookfield Infrastructure, Verizon, and Oneok, investors can build a resilient source of passive income for the long term.
