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 6.7%.

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%.

NNN REIT (NNN)

National Retail Properties is a REIT that owns ~3,000 single-tenant, net-leased retail properties across the United States. It is focused on retail customers because they are much more likely to accept rent hikes to avoid switching locations and losing their customer base. Its 15-year low occupancy rate is 96% and it typically ranges between 98%-99%.

NNN delivered a strong performance in the third quarter of 2024, showcasing disciplined portfolio management and strategic acquisitions.

The company tightened its full-year core FFO guidance to a range of $3.28 to $3.32 per share and raised its acquisition guidance midpoint by 22% to $550 million, underscoring a robust pipeline and execution capabilities. NNN reported Q3 core FFO of $0.84 per share, a 3.7% increase year-over-year, and maintained an impressive 99.3% occupancy across its 3,549 properties.

NNN's strong balance sheet, with no outstanding debt on its $1.2 billion credit facility and no significant maturities until late 2025, supports its ability to navigate current market conditions and capitalize on growth opportunities. The company funded 74% of its 2024 acquisitions through free cash flow and dispositions, reducing reliance on external capital markets.

NNN has increased its dividend for 34 consecutive years, and currently yields 5.9%.

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