Want Safe Dividend Income in 2025 and Beyond? Invest in the Following 2 Ultra-High-Yield Stocks.
Real Estate
The Motley Fool

Want Safe Dividend Income in 2025 and Beyond? Invest in the Following 2 Ultra-High-Yield Stocks.

July 6, 2025
04:20 AM
5 min read
AI Enhanced
investmenteconomystocksfinancialreal estatefinancialsmarket cyclesseasonal analysis

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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5 min read

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real estate

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Published

July 6, 2025

04:20 AM

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The Motley Fool

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Key Topics
investmenteconomystocksfinancialreal estatefinancialsmarket cyclesseasonal analysis

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.