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3 Ultra-High-Yield Dividend Stocks That Won't Keep You Up at Night
The Motley Foolยท2025-09-27 08:44

Core Viewpoint - The article highlights three ultra-high-yield dividend stocks that are considered reliable and likely to continue paying and growing their dividends, providing reassurance to income investors. Group 1: Enbridge - Enbridge offers a forward dividend yield of approximately 5.4% and has increased its dividend for 30 consecutive years, indicating strong dividend reliability [3][6] - About 75% of Enbridge's total revenue comes from its pipelines and midstream operations, which have minimal exposure to volatile commodity prices [4] - Enbridge is the largest natural gas utility in North America, delivering 9.3 billion cubic feet of natural gas to 7 million customers daily, enhancing the safety of its dividends [5] - The company has demonstrated reliable distributable cash flow during turbulent periods, including the financial crisis and the COVID-19 pandemic [6] Group 2: Realty Income - Realty Income has a dividend yield of 5.4% and has also increased its dividend for 30 consecutive years, similar to Enbridge [7] - Realty Income pays dividends monthly and is structured as a real estate investment trust (REIT), which must distribute at least 90% of its income as dividends to avoid federal income taxes [8] - The company has delivered a compound annual total return of 13.5% since its listing in 1994 and has shown positive operational returns for 29 consecutive years [9] - Realty Income owns over 15,600 properties across 91 industries, providing impressive stability through a diversified portfolio [10] - The total addressable market for net lease properties is estimated at $14 trillion, with Europe accounting for $8.5 trillion, presenting solid growth prospects for Realty Income [11] Group 3: Verizon Communications - Verizon Communications offers a dividend yield of 6.4% and has increased its dividend payout for 19 consecutive years [12] - Despite intense competition in the wireless services market, Verizon has maintained strong performance, posting the highest revenue in the industry in Q2 2025 [13] - The company has the most broadband and mobile customers and has been recognized for having the top-ranked network in the nation [13] - The high cost of building infrastructure for wireless services makes it unlikely for new entrants to disrupt the market [14] - Verizon's guidance for free cash flow this year is $20 billion, providing ample coverage for its dividend payments [15]