10 Best Dividend Stocks with 5%+ Yields and Growing Cash Flows

In this article, we will take a look at the 10 Best Dividend Stocks with 5%+ Yields and Growing Cash Flows.

Dividends have played a bigger role in equity returns than most people realize. Since 1936, they’ve accounted for roughly one-third of the S&P 500’s total return, with capital appreciation making up the other two-thirds, according to S&P Dow Jones Indices. Today, most market participants understand that sustainable dividend income and capital appreciation together shape total return expectations. But chasing high yields can be a trap.

Morningstar’s 2026 report on dividend investing warned that unusually high payouts often signal business weakness rather than financial strength. The firms it pointed to, Walgreens Boots Alliance, Intel, 3M, and Shell, all had long dividend histories before eventually cutting payouts when business conditions turned against them.

The report flagged three things investors should watch: high payout ratios, weak competitive advantages, and poor financial health. Companies stretched on all three fronts have historically been the most vulnerable to dividend cuts. Morningstar also made the case for thinking beyond income alone. When a company cuts its dividend, its share price typically falls, so investors lose on both ends. Treating dividend investing as a total-return strategy, rather than a pure income play, helps avoid that double hit.

The core takeaway from the report is straightforward. Sustainable cash flows, durable dividends, and strong business fundamentals tend to deliver better long-term outcomes than simply going after the highest yield available.

Given this, we will take a look at some of the best dividend stocks with 5% yields and growing cash flows.

Our Methodology:

For this list, we screened for companies with dividend yields above 5%, as of May 14. From that list, we identified companies with free cash flow for a trailing twelve-month period of more than $500 million. Finally, we picked stocks with a short %age of float below 4%, and ranked them accordingly.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).

10. W. P. Carey Inc. (NYSE:WPC)

Short Percentage of Float: 3.91%

Dividend Yield as of May 14: 5.01%

Levered Free Cash Flow: $664.4 Million

On May 12, Scotiabank raised its price recommendation on W. P. Carey Inc. (NYSE:WPC) to $79 from $73. It reiterated a Sector Perform rating on the shares. The analyst said Q1 earnings across the net lease REIT sector reflected stronger AFFO and higher investment guidance throughout the firm’s coverage universe. Many REITs also issued forward equity during or after the quarter to meet funding needs for the rest of the year, the research note stated.

On April 30, RBC Capital raised its price target on WPC to $73 from $72 while keeping a Sector Perform rating on the stock. The analyst said the company’s Q1 results were mostly in line with expectations, especially since it had already reported solid acquisition activity, which pointed to a likely increase in guidance.

W. P. Carey Inc. (NYSE:WPC) is a net lease real estate investment trust with a commercial real estate portfolio that includes 1,703 net lease properties spanning about 185 million square feet. The company focuses on corporate sale-leasebacks, build-to-suit projects, and acquiring single-tenant net lease properties.

9. Prudential Financial, Inc. (NYSE:PRU)

Short Percentage of Float: 3.41%

Dividend Yield as of May 14: 5.43%

Levered Free Cash Flow: $10.3 Billion

On May 12, Wells Fargo analyst Wes Carmichael raised the firm’s price target on Prudential Financial, Inc. (NYSE:PRU) to $100 from $93 and maintained an Underweight rating on the shares. The firm said it was also updating estimates to reflect Q1 actual results, recent strength in equity markets, and company-specific adjustments.

On May 11, Piper Sandler analyst John Barnidge raised the firm’s price target on Prudential Financial to $105 from $99 while keeping a Neutral rating on the stock. The firm noted that Prudential delivered results well above both Piper’s estimates and broader consensus expectations, supported by strong year-over-year growth. The report pointed to a large pension risk transfer that partly contributed to the earnings beat of $1.4B in Q1 2026, compared to 0c in Q1 2025. Corporate and Other results were also viewed as stronger than the firm’s expectations.

Prudential Financial, Inc. (NYSE:PRU) is a financial services provider and global investment manager. The company offers life insurance, annuities, retirement-related products and services, mutual funds, and investment management solutions.

8. Realty Income Corporation (NYSE:O)

Short Percentage of Float: 3.31%

Dividend Yield as of May 14: 5.22%

Levered Free Cash Flow: $1.8 Billion

On May 13, Mizuho lowered its price recommendation on Realty Income Corporation (NYSE:O) to $66 from $68. It reiterated a Neutral rating on the shares. The firm said it continues to see macroeconomic and interest rate uncertainty for triple-net real estate investment trusts.

President, CEO, and Director Sumit Roy said the company entered 2026 with strong momentum and posted AFFO per share of $1.13, up 6.6% from the same period last year. He added that the company invested nearly $2.8B during the quarter at an initial weighted average cash yield of 7.1%. That total included about $1B directed toward credit and structured investments.

Roy also tied the quarter’s results to the company’s expanding private capital strategy. He highlighted a $1.7B cornerstone capital raise for the Perpetual Life U.S. Core+ fund, along with a strategic partnership with GIC focused on construction financing and takeout commitments. He also pointed to $1B in equity funding from Apollo Global Management aimed at opportunities in the insurance and annuity market.

Realty Income Corporation (NYSE:O) is a real estate investment trust focused on acquiring, owning, and managing freestanding commercial properties leased under long-term net lease agreements. Its tenant base includes investment-grade, investment-grade-equivalent, and other operators across different industries.

7. Western Midstream Partners, LP (NYSE:WES)

Short Percentage of Float: 3.20%

Dividend Yield as of May 14: 8.11%

Levered Free Cash Flow: $952.2 Million

On May 13, Wells Fargo raised its price recommendation on Western Midstream Partners, LP (NYSE:WES) to $43 from $41. It reiterated an Equal Weight rating on the shares. The firm also raised its 2026 and 2027 EBITDA estimates to reflect the Brazos deal and first-quarter results. Wells Fargo said it views the fully synergized multiple of 7.5 times as fair, citing earnings accretion, greater customer diversification, and increased exposure to the Delaware Basin.

On May 8, Stifel analyst Selman Akyol upgraded Western Midstream Partners to Buy from Hold. It also raised the price target on the stock to $46 from $42. The analyst said the company delivered a first-quarter earnings beat, while management commentary during the earnings call remained positive for the rest of 2026. Stifel said it sees “several tailwinds” for Western Midstream heading into 2027. These include accretion from the Brazos acquisition, the current commodity backdrop, accelerating commercial discussions, and the company’s new ventures group, which is exploring opportunities beyond the traditional midstream business.

Western Midstream Partners, LP (NYSE:WES) acquires, owns, develops, and operates midstream assets. Its operations include gathering, compressing, treating, processing, and transporting natural gas, as well as gathering, stabilizing, and transporting condensate, natural gas liquids, and crude oil. The company also handles produced water gathering and disposal.

6. VICI Properties Inc. (NYSE:VICI)

Short Percentage of Float: 2.42%

Dividend Yield as of May 14: 6.39%

Levered Free Cash Flow: $1.29 Billion

On May 12, Scotiabank analyst Greg McGinniss raised the firm’s price target on VICI Properties Inc. (NYSE:VICI) to $32 from $30 and maintained a Sector Perform rating on the shares. The analyst said Q1 earnings across the net lease REIT sector reflected higher AFFO and stronger investment guidance throughout the firm’s coverage universe. Many REITs also issued forward equity during or after the quarter to support funding needs for the year, according to the research note.

During the Q1 2026 earnings call, President and COO John W. Payne said VICI Properties remained active during the quarter and made nearly $1.2 billion in new capital commitments. Management noted that the last two quarters marked the first time the company had reported more than $1 billion in new capital commitments in back-to-back periods.

Payne also said the company expanded its long-term strategic relationship with Cain International and Eldridge Industries by providing a $1.5 billion mezzanine loan for the One Beverly Hills project. He said the financing included an additional $1.05 billion commitment on top of the company’s previously announced $450 million investment. Phased delivery of the project is expected to begin in 2028.

In addition, Payne said VICI Properties announced a pending $144 million acquisition of four real estate assets in Alberta, Canada, at an 8% cap rate. The transaction is tied to Pure Casino Entertainment’s planned take-private acquisition of Gamehost.

VICI Properties Inc. (NYSE:VICI) is a real estate investment trust focused on owning and acquiring gaming, hospitality, wellness, entertainment, and leisure properties that operate under long-term triple net leases.

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