Companies with higher-yielding dividends can be at higher risk. In many cases, the higher yield is an investor's reward for taking on more risk that the payout could get cut if market conditions deteriorate.

However, that's not always the case. Some higher-yielding dividend stocks are super-low risk. Chevron (CVX 0.44%), Cisco Systems (CSCO 0.06%), and Procter & Gamble (PG 0.68%) are incredibly safe dividend stocks. They offer above-average payouts backed by some of the strongest balance sheets in the world. Thus, investors can hold them with confidence for a potential lifetime of dividend income.

A sustainable oil-fueled dividend

Oil giant Chevron currently offers a 3.9% dividend yield. That's more than double the 1.7% dividend yield of the S&P 500.

Chevron supports its dividend with an elite financial profile. The oil company has an AA bond rating, which is on par with the U.S. government. Chevron is one of only a handful of countries with AA-rated credit.

The company ended the first quarter with nearly $16 billion of cash against $23 billion of debt, giving it a super-low net debt ratio of 4.4%. That's well below its target level in the range of 20%-25%. It gives the company lots of cushion to weather lower oil prices.

Chevron's balance-sheet flexibility will allow it to continue growing its dividend (which it has done for 36 straight years), investing in capital projects, and repurchasing shares at a sustained oil price below $60 a barrel in the future (more than $10 a barrel below the current price).

There are concerns about the future of oil demand as the world moves toward lower-carbon alternatives. However, Chevron is slowly transitioning with the rest of the world. It's already a leader in producing renewable diesel. Meanwhile, it's investing in hydrogen, carbon capture and storage, and other renewable fuels. These investments position Chevron to continue growing its cash flow, putting its dividend on a sustainable foundation.

A tech-powered payout

Networking giant Cisco Systems currently offers a 3.2%-yielding dividend. The technology company backs that payout with a strong financial profile. It generates lots of cash and has an excellent bond rating of AA-/A1.

Cisco Systems has produced over $13 billion of free cash flow during the first nine months of its 2023 fiscal year, up 44% from the prior-year period. That easily covered its $4.7 billion dividend outlay. Meanwhile, the company ended its fiscal third quarter with $23 billion of cash, equivalents, and investments against about $8 billion of debt.

The company's fortress-like balance sheet and copious free cash flow give Cisco the financial flexibility to invest in growing its business and repurchasing shares. The company's expansion-related investments help grow cash flow, enabling Cisco to increase its dividend. It bumped up its payout by 3% earlier this year, marking its 12th straight year of increasing the payout.

An illustrious dividend history

Consumer products giant Procter & Gamble has a 2.5%-yielding payout. It has an elite track record of paying dividends. The company has paid dividends every year since its incorporation 133 years ago. It delivered its 67th consecutive year of dividend growth in 2023, maintaining its spot in the elite group of Dividend Kings.

The company backs its dividend with an elite financial profile. Procter & Gamble has an AA-/Aa3 bond rating. Meanwhile, its business generates lots of cash. Over the last nine months, Procter and Gamble produced $11.5 billion in cash from operating activities. It only needed $3 billion to grow the business, leaving it plenty of money to cover its dividend ($6.7 billion during that period). That provided it with excess cash to repay debt and buy back shares.

Procter & Gamble expects rising demand for consumer products to continue growing its earnings and cash flow, enabling the company to keep increasing its dividend.

Built to last

Chevron, Cisco Systems, and Procter & Gamble have incredibly durable financial foundations. They have elite credit ratings and generate significant and growing cash flow. That should enable these companies to continue paying dividends for decades to come. Because of that, they're extremely low-risk options for investors seeking to collect above-average dividend income streams that could last a lifetime.