The stock market has experienced a significant decline this year, largely 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 some high-quality companies, providing them with a source of resilient passive income even in the face of economic uncertainty.
Here are five safe dividend stocks that investors can consider buying right now for reliable dividend income:
1. Dominion Energy: Dominion Energy is a utility company that currently offers a dividend yield of 5.1%. The company generates stable cash flow by supplying electricity and natural gas to customers in Virginia and the Carolinas. With government-regulated rates and consistent demand for energy, Dominion Energy is well-positioned to maintain its high dividend yield. The company is also investing heavily in expanding its power generation capabilities to support future growth, which should further strengthen its dividend payout over the long term.
2. NNN REIT: NNN REIT is a real estate investment trust that owns a portfolio of single-tenant net lease retail properties. With a dividend yield of 5.8%, the company collects steady rental income from its properties, with tenants covering all operating costs. NNN REIT pays out less than 70% of its cash flow in dividends each year, allowing it to reinvest in additional income-generating properties. The company’s conservative balance sheet and growing income stream have enabled it to consistently increase its dividend payment year after year.
3. Brookfield Infrastructure: Brookfield Infrastructure is a global infrastructure operator with a dividend yield of around 5%. The company generates stable cash flow from government-regulated rate structures and long-term contracts, with only 60% to 70% of its cash flow paid out in dividends. Brookfield Infrastructure uses its retained cash flow and capital recycling strategy to invest in growing its business and upgrading its infrastructure portfolio. With investments in pipeline systems and data infrastructure, the company is poised for FFO and dividend growth in the coming years.
4. Verizon: Verizon is a telecom giant with a dividend yield of 6.2%. The company produces recurring cash flow from wireless and broadband services, which it uses to invest in infrastructure and pay its high-yielding dividend. Verizon’s strong balance sheet has enabled it to acquire Frontier Communications and expand its fiber network, further supporting its dividend growth. With investments in fiber and 5G technology, Verizon is well-positioned to continue increasing its dividend payout.
5. Oneok: Oneok is a pipeline giant with a dividend yield of 5%. The company generates stable cash flow from government-regulated rate structures and long-term contracts, supporting its dividend payout. Oneok has made strategic acquisitions and investments in organic capital projects to diversify and expand its midstream platform, driving additional growth and dividend stability. With a track record of dividend growth for over a quarter-century, Oneok remains a solid choice for investors seeking reliable income.
In conclusion, the recent stock market sell-off has created an opportunity for investors to secure high-yielding dividend stocks that offer resilience and stability in uncertain times. By investing in companies like Dominion Energy, NNN REIT, Brookfield Infrastructure, Verizon, and Oneok, investors can build a portfolio of rock-solid dividend stocks that provide a reliable source of income over the long term.
