The S&P 500 Index is coming off another strong year, rising 23% in 2024. As a result of a long-running bull market, the average dividend yield of the index has come down to just 1.3%. This is not a high enough yield for many retirement investors who desire higher investment income.

For this reason, we recommend retired investors consider high-yield dividend stocks that have a demonstrated ability to raise their dividends, even during recessions.

The following 3 dividend stocks have yields above 5% and can be counted on for lasting retirement income.

Verizon Communications (VZ)

Verizon Communications was created by a merger between Bell Atlantic Corp and GTE Corp in June 2000. Verizon is one of the largest wireless carriers in the country. Wireless contributes three-quarters of all revenues, and broadband and cable services account for about a quarter of sales. The company’s network covers ~300 million people and 98% of the U.S.

On September 14, 2024, Verizon announced that it was increasing its quarterly dividend 1.9% to $0.6775 for the November 1st, 2024 payment, extending the company’s dividend growth streak to 20 consecutive years.

On October 22nd, 2024, Verizon reported third quarter results for the period ending September 30th, 2024. For the quarter, revenue declined 0.1% to $33.3 billion, which missed estimates by $120 million. Adjusted earnings-per-share of $1.19 compared unfavorably to $1.22 in the prior year, but this was $0.01 more than anticipated.

For the quarter, Verizon had postpaid phone net additions of 239K, which was much better than loss of 51K that the company had in the same quarter a year ago. Retail postpaid net additions totaled 349K.

Wireless retail postpaid phone churn rate remains low at 0.89%. Wireless revenue grew 2.7% to $19.8 billion while the Consumer segment increased 0.4% to $25.4 billion. Broadband totaled 389K net new customers during the period, the ninth consecutive quarter of at least 375K net adds. This included 363K fixed wireless net additions.

The total fixed wireless customer base is more than 4.2 million, meaning that the company has now hit its target 15 months earlier than it had anticipated. Fios additions totaled 39K. Business revenue decreased 2.9% to $7.4 billion as gains in wireless service revenue were once again more than offset by weakness for wireline revenue. Free cash flow totaled $14.5 billion for the first half of the year.

VZ stock currently yields 7.2%.

UGI Corp. (UGI)

UGI Corporation is a gas and electric utility that operates in Pennsylvania, in addition to a large energy distribution business that serves the entire US and other parts of the world.

It was founded in 1882 and has paid consecutive dividends since 1885. Its market capitalization is $6.2 billion. The company operates in four reporting segments: AmeriGas, UGI International, Midstream & Marketing, and UGI Utilities.

On November 22, 2024, UGI Corporation reported record results for fiscal 2024, achieving an all-time high adjusted diluted EPS of $3.06, driven by strong execution of strategic priorities and efficiency improvements.

The company realized a $75 million reduction in operating expenses ahead of schedule, achieving permanent cost savings targeted for fiscal 2025.

UGI’s main competitive advantage is in its highly diversified business model. It has electric and gas utilities, propane distribution that covers a wide geographic area and diverse customer base, as well as a variety of other energy generation and distribution activities.

This allows it to not only weather downturns in any particular business, but provides several avenues for growth as well.

UGI also returned $320 million to shareholders through dividends, continuing a 140-year streak of consecutive dividend payments. UGI has increased its dividend for 36 consecutive years and currently yields 5.2%.

Realty Income (O)

Realty Income is a retail real estate focused REIT that has become famous for its successful dividend growth history and monthly dividend payments.

Realty Income owns retail properties that are not part of a wider retail development (such as a mall), but instead are standalone properties. This means that the properties are viable for many different tenants, including government services, healthcare services, and entertainment.

Realty Income reported third-quarter 2024 earnings, with EPS at $0.30, missing estimates by $0.06, but revenue of $1.27 billion, a 26% year-over-year increase, beat expectations by $10.01 million. Net income for common shareholders was $261.8 million.

The company generated $915.6 million in Adjusted Funds from Operations (AFFO), or $1.05 per share. Realty Income invested $740.1 million in new properties, achieving an initial average cash yield of 7.4%, while maintaining a portfolio occupancy of 98.7%.

Realty Income generates its growth through growing rents at existing locations, via contracted rent increases or by leasing properties to new tenants at higher rates, but also by acquiring new properties. It expects to increase its investments in international markets moving forward. It made a first deal in the UK in 2019 and plans to do more such deals in the future when it finds attractive targets. These acquisitions will help drive profits in the long run

Realty Income has increased its dividend for 27 consecutive years, and currently yields 6%.

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Bob Ciura has worked at Sure Dividend since October 2016. He oversees all content for Sure Dividend and its partner sites. Bob received a Bachelor’s degree in Finance from DePaul