3 Dividend Stocks Perfect for Millennial Investors

Key Points

• Realty Income raised its monthly dividend 132 times since 1994.

• Verizon's moves to focus on its core business are paying off.

• Enterprise Products Partners is one of the biggest midstream companies in the U.S.

• 10 stocks we like better than Realty Income ›

Every generation has their own preferences for investing their money and becoming richer, particularly when it comes to dividend stocks, according to the Motley Fool's Generational Investing Trends Survey. While the majority of baby boomers and Gen X investors are automatically reinvesting their dividends, millennial investors have other priorities.

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The survey, which questioned 2,000 Motley Fool investors, found that only 38% of millennial investors who responded are automatically reinvesting. In fact, 53% of them saw dividend investing more as a side gig than a retirement strategy.

Data source: The Motley Fool's Generational Investing Trends Survey distributed via Pollfish on July 17, 2025.

This is good information to have, because if you're choosing dividend stocks, then the type of dividend stock you choose matters a great deal. Some dividend stocks offer a great dividend yield but a slow growth rate. Others, such Domino's Pizza and Broadcom, have dizzying rapid dividend growth but start with a yield of less than 1.5%. For millennials -- or anyone -- who is cashing out their payouts rather than reinvesting them, the distinction matters more than you may think.

Image source: Getty Images.

Let's look at three compelling dividend stocks that millennial investors can use now for income.

Realty Income

My top pick for high-yield dividend stocks is Realty Income (NYSE: O), which is the king of rapid growth and a solid yield. Currently with a dividend yield of 5.4%, this monthly dividend company raised its payout 132 times since it became listed on the New York Stock Exchange in 1994.

Because it's a real estate investment trust (REIT), Realty Income is required to return most of its taxable income to investors. And there's plenty of money to be had -- the company leases more than 15,600 properties and more than 98% of its portfolio is occupied. Realty Income has a diversified portfolio of grocery stores, convenience stores, dollar stores, restaurants, drug stores, and more, shielding the company from any economic downturn.

Verizon Communications

Verizon Communications (NYSE: VZ) also stands out, thanks to its stable business model and a generous yield. The company made several moves in recent years to focus on its core business, and it seems to be paying off.

First, it dumped its media business that included Yahoo and AOL in 2021 to Apollo Global Management for $5 billion. Even though it paid a combined $9 billion for the two properties and lost money on the deal, getting rid of AOL and Yahoo was necessary for Verizon to move forward as a major player in the wireless and broadband space.

Then it sold its tower portfolio in 2024 to Vertical Bridge in a $3.3 billion transaction. The deal involved more than 6,300 wireless communications towers in all 50 states and Washington, D.C., while positioning Verizon as the anchor tenant on the towers.

The telecom giant added 300,000 net mobile and broadband customers in the second quarter and saw its operating revenue jump 5.2% in the quarter to $34.5 billion and earnings per share to increase from $1.09 a year ago to $1.18. Verizon stock is up 8% this year and also pays a dividend yield of 6.3%.

Enterprise Products Partners

Under the Trump administration, fossil fuels are more important than ever. The current White House is dismantling subsidies for solar and wind projects in favor of oil and gas.

That makes Enterprise Products Partners (NYSE: EPD), one of the largest midstream energy companies in the U.S., even more compelling. Enterprise Products Partners has an extensive network of more than 50,000 miles of pipelines and more than 300 million barrels of storage capacity for transporting and storing natural gas liquids, natural gas, crude oil, and refined products.

Midstream companies make their money by transporting fossil fuels, so they don't have to deal with the massive costs of mining or drilling. That gives Enterprise Products Partners a more stable revenue stream that isn't vulnerable to swings in commodity prices.

Revenues were down in the second quarter, coming in at $11.36 billion versus $13.48 billion a year ago. But even so, Net income of $1.45 billion was up slightly from last year, and the company managed to generate earnings per share of $0.66, or 2 cents better than the same quarter a year ago.

For investors who are seeking steady-high yield, Enterprise Products Partners shouldn't be overlooked. The dividend yield is 6.1%.

The bottom line

The best returns still come from reinvesting dividends, but many millennials are using them for other purposes. Whether your goal is retirement, paying bills, or saving for a future purchase, however, dividends are a valuable tool for any investor to consider. High-yielding dividend stocks such as Realty Income, Verizon, and Enterprise Products Partners can help you get there.

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Patrick Sanders has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Domino's Pizza and Realty Income. The Motley Fool recommends Broadcom, Enterprise Products Partners, and Verizon Communications. The Motley Fool has a disclosure policy.