The Safer Way to Earn 5%+ Yields Without Chasing Risk
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One of the biggest questions every investor has to ask at some point is: What is the best way to earn 5%+ yields without chasing a ton of risk? While this feels like a very loaded question, if anyone could answer this question with precision every time, they’d be very, very rich.
Realty Income (O) offers a 5.64% dividend yield and has raised its dividend for 112 consecutive quarters.
Verizon provides a 6.65% dividend yield with 18 consecutive years of dividend increases.
Enbridge locks in 98% of its earnings through long-term contracts and has met its earnings guidance for 19 straight years.
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The bigger question isn’t whether you can earn a 5% yield, you can, but it’s more of a question as to how to do so safely. This doesn’t mean safe, like keeping your cash under a mattress safe, since there is no interest earned. On the other hand, you have to think about what your risk level truly is, and while you don’t want to chase too much risk, you can’t avoid it at all.
It might come as a surprise to many investors, but real estate investments are among the most reliable ways to secure yields above 5% without drifting into speculation and thereby taking on unnecessary risk. These companies are generating income from long-term leases, a diversified tenant base, and have a business model that is built specifically to produce steady payouts.
In the case of Realty Income (NYSE:O), you have what has become the gold standard for a safe yield. With a dividend yield of 5.64% and an annual dividend of $3.23 as of November 2025, the company has raised its dividend for 112 consecutive quarters and pays investors monthly, which is a big win for anyone looking for steady income and to live off their portfolio. The biggest argument in favor of Realty Income is that it offers less day-to-day volatility, which is ideal for retirees and regular investors alike.
Another popular real estate stock, NNN REIT (NYSE:NNN), is a company that focuses on stable, single-tenant properties under triple-net leases, and like Realty Income, has a history of increasing its dividend. In fact, NNN REIT has done so for the last 36 years and counting, which is yet another reason to invest.
Between this increasing pattern and the current 5.83% dividend yield, you can easily look at this company as a place to put your money and reliably earn all year long. The company’s growth rate is more modest, but an annual dividend of $2.40 isn’t worth ignoring.
Not all high yields are going to come from real estate, as some of the most dependable and risk-adverse payouts come from industries that are just really great at generating cash regardless of the economic cycle.
For its part, British American Tobacco (NYSE:BTI) is a company currently sitting at a 5.54% dividend yield, and it’s backed by strong earnings and a history of stable dividends. Even though cigarette volume has steadily declined over time, BTI offsets this downturn in sales by increasing prices and growing its portfolio of smoke-free products.
Offering a dividend yield of 5.58%, Enbridge Inc. (NYSE:ENB) is a reliable cash-flow machine, with almost 98% of its earnings locked into long-term business contracts, and this has helped guide it to a 19-year streak of hitting earnings guidance. In other words, this is the stability income investors love. Better yet, the company has enough free cash flow to continue to fund its infrastructure expansion, all while supporting dividend growth.
There is no question that Verizon’s (NYSE:VZ) dominance in the telecom space has waned as T-Mobile has come on like a giant, but you can’t ignore the company’s 6.65% dividend yield. The company has consistently generated enough free cash flow to cover capital investments, such as expanding its 5G network, while achieving 18 years of consecutive dividend increases.
Investors who are chasing dividend yield alone are often going to end up disappointed because high payouts can also mask underlying weaknesses in the business. However, the names above all share some key qualities that investors should really focus on in order to invest and keep that risk level low.
Among the similarities, these businesses all have cash flow tied to essential services like telecom and real estate. They are conservative in their payout ratios, all while also having dividend growth histories that span decades. Add in long-term contracts or subscription-based revenue sources, and these features are all key to protecting investors from dividend cuts and reducing the chance of permanent capital loss.
Once you find companies that have durable cash flow, the next step is to create a balanced strategy that avoids overconcentration. When you put together a portfolio, a good recommendation would be to blend REITs, energy infrastructure, telecom, and consumer staples. Also, you want to favor businesses that have a long history of uninterrupted dividends, which this list does. Separately, but also most importantly, if you don’t need the dividend returns right now, reinvest these returns while continuing to build your base.
You may think retirement is about picking the best stocks or ETFs, but you’d be wrong. See even great investments can be a liability in retirement. The difference comes down to a simple: accumulation vs distribution. The difference is causing millions to rethink their plans.
The good news? After answering three quick questions many Americans are finding they can retire earlier than expected. If you’re thinking about retiring or know someone who is, take 5 minutes to learn more here.
