In an investment landscape where the S&P 500's average dividend yield hovers around just 1.2%, identifying companies that deliver substantially higher payouts can be a compelling strategy for those seeking passive income. Several firms still offer dividend yields surpassing the 5% mark, supported by stable earnings and prudent financial management. This analysis profiles five such companies, detailing their business models, dividend strategies, and growth prospects.
Clearway Energy: Stable Cash Flows from Renewable Power
Clearway Energy operates in the clean power sector, leveraging its portfolio to generate steady cash flows largely secured through long-term, fixed-rate power purchase agreements with utilities and large corporate customers. The company maintains a dividend yield slightly above 5%, aiming to distribute around 70% of its predictable cash flow as dividends while reinvesting the remainder in expanding its renewable energy assets.
Clearway is confident in its capacity for cash flow growth, projecting a compounded annual increase between 7% and 8% per share through 2030. Beyond that, it anticipates sustained growth of 5% to over 8% annually. This anticipated progression supports the company's strategy of not only maintaining but potentially increasing its dividend payouts over time.
NNN REIT: Durable Income from Triple-Net-Leased Retail Properties
NNN REIT specializes in single-tenant, triple-net-leased commercial real estate, with a focus on retail and service locations such as convenience stores, car washes, and restaurants. The distinctive triple-net lease structure places property operating expenses on tenants, resulting in exceptionally stable rental income streams for the REIT.
The company distributes approximately 70% of its dependable cash flow to shareholders, retaining capital to pursue new investments in income-generating properties. A conservative balance sheet further bolsters its ability to expand via acquisition, particularly through sale-leaseback transactions anchored by established tenant relationships. This strategy underpins a remarkable track record of 36 consecutive years of dividend growth.
Oneok: Reliable Pipeline Income with Expansion Prospects
Oneok, a significant player in midstream pipeline operations, offers a dividend yield around 5.5%, supported by revenues predominantly derived from long-term, fixed-rate contracts and government-regulated tariffs. This model has enabled the company to sustain over 25 years of dividend stability and growth.
Recent years have seen substantial investments to broaden its midstream footprint, including multiple acquisitions. Oneok is actively working to realize cost savings and synergies from these deals, targeting hundreds of millions in annual benefits. Furthermore, ongoing organic expansion projects slated for completion by mid-2028 signal continued growth potential. Solid free cash flow after dividends and a strong balance sheet provide the financial flexibility to uphold its plan for annual dividend increases in the 3% to 4% range.
Verizon Communications: Telecom Giant with Recurring Revenue and High Yield
Telecommunications leader Verizon delivers a dividend yield exceeding 7%, drawing on the steady and recurring revenues generated from wireless and internet service subscriptions. The company's strategic use of this income supports continued investment in network maintenance and expansion, dividend payments, and balance sheet strength.
In an effort to extend its broadband reach and cross-selling opportunities, Verizon recently completed its $20 billion acquisition of Frontier. This move is expected to fortify cash flow growth, underpinning the company's ability to maintain its streak of dividend increases, which has now surpassed 19 consecutive years.
VICI Properties: Gaming and Entertainment Real Estate with Inflation-Linked Rent Growth
VICI Properties stands out with a dividend yield north of 6%. The real estate investment trust benefits from stable cash flows generated by its portfolio of premier gaming, hospitality, wellness, entertainment, and leisure destinations, financed through long-term triple-net leases and loans secured by experiential real estate assets.
An increasing share of VICI's leases incorporate rent escalations tied to inflation, rising from 42% last year to 46% in 2026 and projected to reach 90% by 2030. The company actively acquires additional cash flow-producing properties, exemplified by a $1.2 billion sale-leaseback deal involving seven Nevada gaming assets and substantial commitments to casino development and luxury mixed-use projects in California. These investments are expected to sustain and potentially accelerate dividend growth, which has expanded at a compound annual rate of 6.6% since the close of 2018.
Conclusion: High Yields Backed by Financial Strength and Growth
Clearway Energy, NNN REIT, Oneok, Verizon, and VICI Properties collectively illustrate how investors can access dividend yields well above broad market averages without sacrificing stability. Each company anchors its generous payouts with robust, predictable cash flows and conservative financial management, affording both current income and prospects for dividend growth. These factors make them attractive candidates for portfolios aimed at sustaining passive income over the long term.