Top Dividend Stocks Delivering Over 5% for True Financial Freedom

It is possible to achieve financial freedom through stock investing. If you pick the right companies, stay invested for the long term, and reinvest the dividends, you can build a solid portfolio for retirement. No matter your goals or when you start investing, the idea is to pick stocks that generate a high total return and have the ability to survive the market ups and downs. The total return of a stock investment is the return from dividends and capital appreciation. 

Stocks with a yield higher than 5% are shining stars in the investing galaxy. These companies continue to reward investors through solid dividend payments while strengthening their business. You can build a smart investment portfolio with these dividend stocks that deliver over 5%. 

United Parcel Service 

Logistics company United Parcel Service (NYSE: UPS) is known for its juicy yield of 7.92%. The company has faced trouble due to tariffs, but the management has come up with a cost reduction plan to increase profits. 

It is aiming to focus on high-margin sectors and has cut jobs and closed warehouses as the first step to achieve this. It is moving away from Amazon.com Inc. (NASDAQ:AMZN) deliveries and will be focusing on small businesses and healthcare companies to improve margin in the long run. 

The near-term picture may look cloudy, but the management is optimistic about the long-term growth. UPS remains one of the top logistics companies, and it faces very little competition. The management has recently confirmed its commitment to a growing dividend, and it will make $5.5 billion in dividend payments this year. 

Exchanging hands for $82, the stock is trading at its 52-week low, and I consider it a great opportunity to load up on this dividend giant. 

Pfizer

Pharmaceutical company Pfizer (NYSE: PFE) has also had a tough time recovering from the sales dip. It gained massive investor interest and generated high revenue during the pandemic, but the revenue numbers have dropped over the past year. However, investors should consider the stock as a long-term game. 

Exchanging hands for $24, the stock has a yield of 6.94%. The company recently announced a deal with the White House to avoid the tariff challenges. It will be exempt from tariffs for three years, and in exchange, Pfizer will boost its manufacturing capacity and sell some medicines at a reduced rate. 

Additionally, it has an extensive pipeline that will boost revenue in the coming quarters. The company has a list of candidates in the oncology segment that could earn approval soon. 

Pfizer has recently acquired Metsera, which gives access to the mid-stage GLP-1 asset. It has performed well in phase 2 studies and could give Pfizer a stronghold in the weight loss industry. A Guggenheim analyst has a buy rating for the stock with a price target of $33, while BMO has an outperform rating with a price target of $33. 

Verizon Communications

A dominant name in the telecommunications sector, Verizon Communications Inc. (NYSE: VZ) offers wireless services, which account for 75% of its total revenue. It is the largest US wireless carrier and serves over 90 million postpaid users. The stock has a yield of 6.93%, and it has increased dividends for 21 consecutive years. 

In the most recent quarter, the company reported an operating revenue of $34.5 billion, up 5.2% year over year, and a 2.2% rise in the wireless service revenue. While the company hasn’t been able to report a double-digit top-line growth, it has managed to build strong cash flow. 

Its guidance for free cash flow for the year is $19.5 billion to $20.5 billion, which can easily cover the dividend. The company is growing slowly, and the stock looks extremely cheap with a P/E ratio of 9.26. 

Verizon Communications has recently signed a deal with AST SpaceMobile for the provision of space-based direct-to-device connectivity to cellphones across the U.S. This deal will go into effect in 2026. 

Realty Income

Realty Income (NYSE:O) is a Real Estate Investment Trust (REIT) that pays monthly dividends. It has a yield of 5.55% and has declared 132 dividend increases. The company has an excellent portfolio of assets that support the high yield. It owns an impressive portfolio of over 15,600 industrial, retail, and other properties in the U.S. and Europe. It has an occupancy rate of 97% and has remained the same despite the market uncertainties. 

Also known as “The Monthly Dividend Company,” Realty Income is one of the reliable monthly dividend stocks that can build a passive income stream for investors. The stock is trading for $58.26 at the time of writing and is up 10.76% in 2025. 

Its properties are secured by long-term net leases, which ensure that the client pays for the expenses and keeps Realty Income’s operating expense at a minimum. The leases have an annual rent increase, boosting the cash flow.

Realty Income pays 75% of the income in dividends and invests the remainder in new properties. It is one of the largest REITs in the world and has a very strong balance sheet. The company steadily raises the bar in the real estate industry.