Want Safe Dividend Income in 2025 and Beyond? Invest in the Following 5 Ultra-High-Yield Stocks.

By Matt DiLallo | August 23, 2025, 3:11 AM

Key Points

  • These companies generate fairly stable cash flow, backed by long-term contracts and other steady sources of income.

  • They also have conservative financial profiles.

  • The companies should be able to steadily increase their dividends in the future.

High-yielding dividend stocks often face skepticism. While a robust dividend yield can signal a greater risk of a future payout cut, this isn't always true. Several higher-yielding dividend stocks deliver consistent, reliable income to investors.

Here are five high-quality companies with ultra-high-yielding payouts to buy for safe dividend income in 2025 and beyond.

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1. Clearway Energy

Clearway Energy (NYSE: CWEN)(NYSE: CWEN.A) offers a dividend yield approaching 6%, several times higher than the S&P 500's (SNPINDEX: ^GSPC) 1.2% yield.

The clean power producer backs its payout with stable cash flow. It sells the electricity produced by its wind, solar, and gas assets to utilities and large corporate power buyers under long-term, fixed-rate power purchase agreements. The company aims to distribute 70% to 80% of its stable cash flow to investors through dividends, while retaining the remainder to invest in additional income-generating clean energy assets.

Clearway has lined up several new investments, giving it the clear line of sight to grow its cash available for dividends (CAFD) from $2.08 per share this year to at least $2.50 per share in 2027 (a more than 20% increase). Meanwhile, it is targeting 5% to 8% annual CAFD per share growth in 2028 and beyond. That should provide Clearway with ample power to increase its dividend within its 5% to 8% annual target range.

2. Healthpeak Properties

Healthpeak Properties (NYSE: DOC) pays a monthly dividend yielding about 7%. The real estate investment trust (REIT) secures this payout with stable, growing cash flows from its diverse healthcare property portfolio (outpatient medical, lab, and senior housing). Long-term leases underpin these assets, generating roughly 3% annual income growth from contractual rent escalators.

The REIT aims to pay out about 75% of its adjusted funds from operations (FFO) in dividends. It retains the rest to invest in additional income-producing healthcare properties, including development projects, acquisitions, and credit investments such as real estate-backed loans. It also has a strong investment-grade balance sheet, giving it additional financial flexibility to invest in expanding its portfolio. Healthpeak's growth drivers increase its FFO per share, which should allow it to steadily raise its dividend.

3. Kinder Morgan

Kinder Morgan's (NYSE: KMI) dividend yields approximately 4.5%. The natural gas pipeline leader secures its payout with highly predictable cash flows. Nearly 69% of its revenue comes from take-or-pay and hedging contracts, which provide it with fixed payments, regardless of shifts in commodity prices and demand. In addition, fee-based contracts generate 26% of its cash flows, most supported by steady volumes.

The energy company only pays out about 45% of its annual cash flow from operations in dividends. That enables it to retain substantial cash to fund new growth investments. Kinder Morgan currently has $9.3 billion of commercially secured capital projects in its backlog that should enter service through 2030. That gives it a lot of visibility into its future growth.

The company should have plenty of fuel to continue increasing its high-yielding dividend, which it has done for eight straight years.

4. Realty Income

Realty Income (NYSE: O) pays a monthly dividend yielding about 5.5%. The REIT backs its payout with a diversified portfolio of high-quality properties (retail, industrial, gaming, and others) secured by long-term net leases with many of the world's leading companies. That lease structure provides it with very stable rental income because tenants cover all property operating expenses, such as routine maintenance, real estate taxes, and building insurance.

The REIT pays out a conservative 75% of its cash flow in dividends, allowing it to retain a meaningful amount of income to invest in additional income-generating properties. Realty Income also boasts having one of the 10 best balance sheets in the REIT sector.

The company uses its financial flexibility to grow its portfolio, supporting steady dividend increases. Realty Income has raised its dividend in 111 straight quarters and in each of the last 30 years.

5. Verizon

Verizon's (NYSE: VZ) dividend yields 6%. The telecom leader generates recurring revenue as customers pay their cellphone and internet bills. This cash flow funds network maintenance, expansion, and an attractive dividend. Verizon is on pace to generate about $20 billion in free cash flow this year after capital expenditures, which easily covers its anticipated dividend outlay of around $11.5 billion.

The company uses the excess cash it retains after paying dividends to maintain a strong financial profile. That allows Verizon to make acquisitions as opportunities arise, such as its pending $20 billion deal for Frontier Communications.

The growth driven by its capital spending and acquisitions enables Verizon to increase its dividend. It has raised its payment for 18 straight years, the longest current streak in the U.S. telecom sector.

Supplying safe and growing dividend income

These five companies offer robust dividends, backed by reliable cash flows and strong financial profiles. Their payouts are safe and should grow, making them excellent income stocks to buy for 2025 and beyond.

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Matt DiLallo has positions in Clearway Energy, Kinder Morgan, Realty Income, and Verizon Communications. The Motley Fool has positions in and recommends Kinder Morgan and Realty Income. The Motley Fool recommends Healthpeak Properties and Verizon Communications. The Motley Fool has a disclosure policy.

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