
Want Safe Dividend Income in 2025 and Beyond? Invest in the Following 2 Ultra-High-Yield Stocks.
Key Takeaways
The S&P 500 index is hovering near all-time highs. And its yield is a painfully low 1. 3% or so today. If you are a dividend investor, don't despair; there...
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real estate
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July 6, 2025
04:20 AM
The Motley Fool
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The S&P 500 index is hovering near all-time highs
And its yield is a painfully low 1. 3% or so today
If you are a dividend investor, don't despair; there are still plenty of high-yield options out there
And you don't have to take on huge risk to get yields that are more than four times larger than what you could collect from an S&P 500 index fund
Here's why ultra-high-yield Realty Income (O -0. 09%) and Bank of Nova Scotia (BNS 0. 40%) should be on your buy list in 2025
The yield is not all right rise and fall; that's just a fact of life on Wall Street
But sometimes they go to shocking extremes as they traverse the path between the two ends of the pendulum's arc
Right now, the S&P 500 index is near all-time highs, leading to a very disappointing yield of just 1
Image source: Getty Images
You can argue whether or not the valuation of the S&P makes sense
But the yield is most certainly not going to entice dividend investors looking to maximize the income they generate from their portfolio
However, the S&P 500 is an average; underneath that are a lot of stocks that offer a broad spectrum of dividend yields
And beyond the index are thousands of other investment opportunities, some of which have attractive yields, too
If you take the time to look, you can still find safe dividend stocks that will reliably pay you for years to come
Two of the most attractive right now are Realty Income and the Bank of Nova Scotia, or Scotiabank
Realty Income: A lofty yield and great dividend track record Real estate investment trust (REIT) Realty Income's dividend yield is currently around 5. 6%, which is over four times larger than what you would collect from an S&P 500 index fund
And that dividend has been increased annually for 30 consecutive years, which is an impressive track record of growth
The company is designed to be a slow and steady income tortoise
It owns over 15,600 net lease perties, which is a huge portfolio
They are spread across the U
Although retail is the big focus for Realty Income, it also has exposure to industrial perties and a large collection of other assets -- vineyards, casinos, and data centers, among other things
A net lease requires tenants to pay for most perty-level operating costs, which reduces risk for the REIT
That portfolio is backed up by an investment-grade balance sheet
And that, along with industry-leading scale, tends to allow advantaged access to capital
It requires a lot of capital to grow a this large, but the REIT has plenty of levers to pull and the financial wherewithal to do so
Just go in understanding that the yield is ly to make up a material portion of your total return
But if you are a dividend lover, that's bably what you want anyway
Bank of Nova Scotia: It easily handled the worst of times Canadian banking giant Scotiabank doesn't have the same dividend streak as Realty Income
In fact, its annual streak of dividend increases is currently at one year
But that fact is actually part of what makes the stock so attractive, given its lofty 5
The dividend was held steady in 2024 as the company worked to readjust its focus around Mexico, the United States, and Canada, while reducing exposure to less attractive in Central and South America
The dividend hike in 2025 was a sign that the is back on track
The pause and hike here have to be looked at in a broader context
For example, during the Great Recession, when large U
Banks were forced to cut their dividends, Scotiabank held its payout steady
And then, when the economy imved, it started hiking it again
It has a very long history of reliably paying a dividend, going back to 1883
The key here is that Canadian banks under very strict regulations that have left a conservative ethos in the country's banking sector
To be fair, Scotiabank has been a bit of an industry laggard
Which is why it has adjusted its model to focus on higher-growth opportunities
The dividend increase in 2025 appears to be a signal that the revamp is gressing well
And that is a great reason to add this ultra-high-yield reliable payer today
A little work goes a long way with dividend stocks There are thousands of stocks that pay dividends
You don't want to throw darts, particularly when the market looks it might be expensive
You want to be selective
And Realty Income and the Bank of Nova Scotia are a pair of select ultra-high yielders
If you are trying to build a safe income, both deserve your attention today
Reuben Gregg Brewer has positions in Bank Of Nova Scotia and Realty Income
The Motley Fool has positions in and recommends Realty Income
The Motley Fool recommends Bank Of Nova Scotia
The Motley Fool has a disclosure policy.
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