3 Ultra-High Yield Dividend Stocks to Buy This May

Amid the ongoing uncertainty about tariffs, muted earnings season, and recession concerns, the stock market has remained highly volatile. The Fed will soon give an update on the economy and is expected to keep the interest rates unchanged. If you are looking for safe and secure options to beat the volatility, consider investing in dividend stocks. These stocks may not generate capital appreciation, but will certainly ensure steady income for you.

With hundreds of dividend stocks to choose from, it is important to cherry-pick the ones with a high dividend yield. To beat the market, you need to look for stocks with a dividend yield higher than 4%. Here are the three ultra-high-yield dividend stocks to buy this month. 

Realty Income

Standing strong despite the uncertainty, Realty Income Corporation (NYSE: O) has managed to deliver solid returns and stable performance. The real estate investment trust recently reported strong quarterly results and expects 2025 to be a year of steady dividend growth and earnings. It has a diversified portfolio of 15,600 properties under long-term net leases with some of the biggest companies in the world. This ensures a steady cash flow at minimal operating expenses. 

The company reported a revenue of $1.38 billion and $1.06 per share of adjusted funds from operations, which is up 2.9% year over year. It has minimal expenses and ensures steady income. The management is aiming to invest about $4 billion in new properties in 2025 and see a 2% jump in the FFO range. 

The steady growth in funds from operations allows the management to continue hiking dividends. Europe remains an important market for the company, and it has invested a large amount of capital in acquisitions and development projects across Europe. 

Exchanging for $57.06, the stock is up 8.48% year-to-date and 3.78% in 12 months. It has an attractive dividend yield of 5.65%, and the management has announced its 110th consecutive dividend increase recently. The company’s dividend payout ratio is 75% of the adjusted FFO in the recent quarter. This conservative payout ratio allows the company to invest in new properties and grow the funds from operations. Realty Income has the potential to keep rewarding shareholders in the years to come, and it has an enviable balance sheet. 

Pfizer Inc.

Pharmaceutical company Pfizer (NYSE: PFE) is a popular name globally. The company hit revenue highs during the COVID-19 pandemic, but the revenue has dropped since then. This was expected, and the management is taking cost-cutting measures to ensure that the profit is maintained.

In the recently announced results, Pfizer beat estimates and reported an EPS of 92 cents, which is up 12% year over year. The revenue dropped 6%, but the management has maintained the earnings outlook for 2025. It is aiming for a revenue in the range of $61 billion to $64 billion and an EPS between $2.80 to $3 per share. It expects about $150 million to be impacted due to tariffs. 

Trading for $23.03, PFE stock is down 13.5% year-to-date and 17% in 12 months. It has a dividend yield of 7.47%, which makes it worth an addition to your portfolio. It has increased dividends for 16 consecutive years. The biggest reason to invest in Pfizer is that it is a pharmaceutical company with a strong history and an impressive pipeline of drugs.

Its oncology portfolio and Seagen acquisition will help drive revenue higher. Even in times of a recession, consumers are not going to cut spending on drugs or healthcare products. 

If we look at Pfizer beyond the COVID-19 vaccine, it is an attractive investment. The management has laid out a multi-year cost-cutting plan, which has made a significant difference to the profits. It plans to deliver $7.7 billion in savings at the end of the next two years. Higher profits will lead to higher dividend payouts, benefiting investors. 

Enterprise Products Partners 

I am a big fan of Enterprise Products Partners L.P. (NYSE: EPD). The company operates in the energy segment and has pipelines that transport natural gas, crude oil, and natural gas liquids to different parts of the country. It has several storage facilities, natural gas processing units, and energy assets that continue to bring revenue despite volatility in commodity prices. 

It has a massive pipeline network of over 50,000 miles, and its services are crucial for the economy. The company generates income from the fees collected through contracts, and the majority of its revenue comes from these fees. The fees are not impacted by the change in commodity prices. Besides the nature of the business, the company has a very strong balance sheet, which makes it stand out in the energy sector. 

In the first quarter, the company generated net income of $1.4 billion and a distributable cash flow of $2.0 billion, which is up 5% year-over-year. It invested $960 million for capital growth projects in the quarter and $102 million for other expenses. 

EPD is trading for $30.19 and is down 4.9% year-to-date and has remained flat over the last six months. It enjoys a dividend yield of 7.09% and has delivered generous returns even during the pandemic. The company has raised dividends for 26 consecutive years. The one reason to bet on Enterprise Products Partners is the energy sector. This sector is gaining traction and interest from investors. That said, it is one sector that will never run out of demand. The company continues to invest in capital projects and is anticipating the demand for NGLs to expand. 

The company expects projects worth $6 billion to come online later this year, and as they start generating income and cash flow, Enterprise Products Partners will be in a stronger position to raise dividends. 

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