5 Top Dividend Stocks Yielding 5% or More to Buy Right Now for Passive Income

Matt DiLallo, The Motley Fool

Sat, Jul 12, 2025, 3:31 PM 5 min read

• Many high-quality stocks offer dividend yields of 5% or more.

• They back their payouts with recurring cash flows and high-quality balance sheets.

• These companies also have solid records of increasing their dividends.

• 10 stocks we like better than Realty Income ›

The S&P 500's (SNPINDEX: ^GSPC) dividend yield is approaching record lows at around 1.2%. However, that doesn't mean passive income seekers are out of luck. Several high-quality companies currently offer dividends with yields of 5% or more.

Here's a look at five top dividend stocks to buy for passive income right now.

Realty Income (NYSE: O) currently has a dividend yield above 5.5%. The real estate investment trust (REIT) backs that payout with a high-quality real estate portfolio and financial profile.

The company owns a diversified portfolio (retail, industrial, gaming, and other properties) net leased to many of the world's leading companies. Net leases produce very stable rental income because tenants cover all property operating expenses, including building insurance, real estate taxes, and routine maintenance.

The REIT has an exceptional record of paying dividends. It has declared 661 consecutive monthly dividends since its formation. Meanwhile, Realty Income has increased its dividend 131 times since its initial public listing in 1994. It has raised its payout 111 straight quarters and for 30 years in a row.

With a durable portfolio and fortress financial profile, Realty Income should have no trouble continuing to increase its high-yielding dividend in the future.

Clearway Energy (NYSE: CWEN.A) (NYSE: CWEN) has a dividend yield currently just below 5.5%. The clean power producer generates lots of stable cash flow to cover its dividend by selling electricity to utilities and large corporate customers under long-term, fixed-rate power purchase agreements.

The company uses its financial flexibility to invest in additional income-generating clean energy assets. Clearway has lined up several new investments that it expects to close over the next few years. That gives it a clear line of sight to grow its cash available for dividends from $2.08 per share this year to over $2.50 per share by 2027. That supports the company's plan to increase its high-yielding payout within its 5% to 8% annual target range.

Healthpeak Properties (NYSE: DOC) yield is over 6.5%. The healthcare REIT has recently switched to a monthly dividend payment schedule, making it an ideal choice for those seeking to generate passive income. It backs its payout with a high-quality portfolio of healthcare properties (outpatient medical buildings, purpose-built labs, and senior housing communities).