Enbridge is a reliable high-yield dividend stock to buy, while Ford and UPS are risky.

From Nasdaq: 2025-05-26 08:38:00

High-yield dividend stocks like Ford, UPS, and Enbridge offer payouts ranging from 6% to almost 7%, higher than the S&P 500’s sub-1.5% yield. Enbridge stands out with a bankable income stream, making it a better choice for investors seeking reliable dividends. Ford and UPS face uncertainties that could lead to dividend cuts.

Enbridge operates a low-risk business model, with 98% of its cash flow coming from stable sources. The company pays out 60% to 70% of its cash flow in dividends annually, with a strong investment-grade balance sheet. Enbridge is poised to grow its cash flow and dividend at a 3% to 5% rate, extending its 30-year growth streak.

Ford’s dividend outlook is uncertain due to market conditions and the impact of tariffs on the auto sector. Analysts predict a potential dividend cut as early as the next quarter. UPS has been a reliable dividend stock, but concerns about declining free cash flow and lost business with Amazon cast doubt on its sustainability.

Investors looking for high-yield dividend stocks should consider Enbridge over Ford and UPS for its more sustainable income stream. The future of Ford and UPS dividends is uncertain, while Enbridge’s low-risk business model and growth prospects make it a reliable choice for income-focused investors.

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