High-Yield Dividend Stocks Over 5% for Financial Freedom

United Parcel Service (NYSE: UPS) currently offers investors an impressive 7.92% dividend yield, making it one of the highest-yielding stocks in the logistics sector. Trading at $82 per share—its 52-week low—the company presents what many consider a significant buying opportunity for income-focused investors. Despite facing challenges from tariffs and shifting market dynamics, UPS management has implemented a comprehensive cost reduction strategy that includes job cuts, warehouse closures, and a strategic pivot away from Amazon.com Inc. deliveries toward higher-margin sectors.

The company’s deliberate shift toward serving small businesses and healthcare companies reflects a long-term vision to improve profitability margins. While near-term prospects may appear uncertain, management remains optimistic about UPS’s future growth trajectory, recently reaffirming its commitment to growing dividends with planned payments totaling $5.5 billion this year. With minimal competition in its core logistics operations and 16 consecutive years of dividend increases, UPS represents a compelling combination of high yield and strategic repositioning for investors seeking both income and potential capital appreciation.

Pfizer (NYSE: PFE), trading at $24 per share with a 6.94% dividend yield, has navigated post-pandemic revenue normalization while maintaining its appeal to dividend investors. The pharmaceutical giant recently secured a significant agreement with the White House that provides three years of tariff exemption in exchange for manufacturing capacity expansion and reduced pricing on certain medications. This strategic move helps mitigate external challenges while positioning the company for sustained growth.

Beyond tariff protection, Pfizer boasts an extensive drug pipeline with particular strength in oncology, where multiple candidates await regulatory approval. The recent acquisition of Metsera provides access to mid-stage GLP-1 assets that showed promising results in phase 2 studies, potentially establishing Pfizer as a serious contender in the lucrative weight loss medication market. Analyst sentiment remains positive, with Guggenheim maintaining a buy rating and $33 price target while BMO recommends outperform with an identical target. With 16 years of consecutive dividend increases, Pfizer offers investors exposure to pharmaceutical innovation alongside reliable income generation.

Verizon Communications Inc. (NYSE: VZ) stands as the largest U.S. wireless carrier, serving over 90 million postpaid users and generating 75% of its revenue from wireless services. The company’s 6.93% dividend yield is supported by 21 consecutive years of dividend increases, demonstrating remarkable consistency in rewarding shareholders. Recent quarterly results showed operating revenue of $34.5 billion, representing 5.2% year-over-year growth, with wireless service revenue increasing 2.2%.

While Verizon hasn’t achieved double-digit top-line growth, the company maintains impressive cash flow generation, with guidance projecting free cash flow between $19.5 billion and $20.5 billion for the year—easily covering dividend obligations. Trading at a price-to-earnings ratio of just 9.26, the stock appears significantly undervalued relative to its cash flow generation and market position. The recent partnership with AST SpaceMobile for space-based direct-to-device connectivity, scheduled for implementation in 2026, represents forward-looking innovation that could drive future growth in the telecommunications landscape.

Realty Income (NYSE: O), known as “The Monthly Dividend Company,” offers investors a unique proposition with its 5.55% yield distributed monthly rather than quarterly. This Real Estate Investment Trust (REIT) has declared 132 dividend increases throughout its history and currently trades at $58.26 per share, having gained 10.76% in 2025. The company’s impressive portfolio includes over 15,600 industrial, retail, and other properties across the U.S. and Europe, maintaining a remarkable 97% occupancy rate despite market uncertainties.

Realty Income’s business model is strengthened by long-term net leases that transfer operating expenses to tenants while incorporating automatic annual rent increases, creating a predictable and growing cash flow stream. The company follows a conservative payout ratio, distributing 75% of income as dividends while reinvesting the remainder into property acquisitions. As one of the world’s largest REITs with a strong balance sheet and consistent performance, Realty Income provides investors with reliable monthly income and exposure to a diversified real estate portfolio that continues to set industry standards.

The combination of United Parcel Service, Pfizer, Verizon Communications, and Realty Income represents a diversified approach to high-yield dividend investing across logistics, pharmaceuticals, telecommunications, and real estate. Each company offers yields exceeding 5% while demonstrating commitment to shareholder returns through consistent dividend increases ranging from 16 to 25 years. This track record of reliable payments through various market conditions provides investors with confidence in their income-generating capabilities.

For investors seeking financial freedom, these stocks offer the potential for substantial total return through both dividend income and capital appreciation. The disciplined approach of reinvesting dividends compounds wealth over time, while the companies’ strong fundamentals and strategic initiatives provide stability during market volatility. By building a portfolio around such established companies with proven dividend histories, investors can create sustainable passive income streams that support long-term financial goals, whether for retirement planning or ongoing wealth accumulation.