High-yield dividend stocks worth watching in 2025
From established energy companies to reliable REITs, these high-yielding US dividend stocks could offer attractive income opportunities for long-term investors.
Market overview
As investors seek reliable income streams in 2025, high-yield dividend stocks continue to attract attention. With market uncertainty persisting, companies with strong dividend track records and sustainable payout ratios deserve consideration for long-term portfolios.
Top dividend-paying stocks
Shares in Altria Group, a leading tobacco company, currently offer the highest dividend yield in the S&P 500 at nearly 8%. The company's commitment to shareholder returns is evident in its impressive record of 59 dividend increases over 55 years. The company aims to continue boosting the dividend at a mid-single-digit annual rate through 2028.
Energy infrastructure remains a fertile ground for dividend seekers. rprise Products Partners maintains a healthy 6.3% yield, supported by diversified operations and 26 consecutive years of distribution growth. The company's diversified operations in natural gas, crude oil, and petrochemicals contribute to its stable cash flows, supporting its consistent dividend growth.
Infrastructure and utilities
Canadian energy giant Enbridge offers a 6.2% yield, making it an attractive opportunity. As North America's largest natural gas utility provider, Enbridge boasts a three-decade streak of dividend increases. Its business model generates significant cash flow, reassuring investors.
Meanwhile, telecommunications stalwart Verizon offers a compelling 6.3% yield. Despite sector challenges, Verizon's strong market position, consistent cash flow generation, and 5G expansion plans bolster dividend sustainability.
Top one-year share price performers chart
Real estate income opportunities
Investment trusts like Realty Income Corporation, a real estate investment trust (REIT), are dubbed 'The Monthly Dividend Company' and offer a 5.7% yield. It has increased payouts for 30 consecutive years, including 109 straight quarters. The REIT's focus on retail properties with long-term leases ensures stable cash flows.
Consumer staples and healthcare
Kraft Heinz has a 3% yield, supported by its strong brand portfolio and focus on essential consumer goods.
Similarly, Johnson & Johnson provides a 3% yield, backed by diverse healthcare operations and consistent financial performance. Its reliable performance makes it a solid choice for dividend investors.
Bottom one-year share price performers chart
Key considerations for investors
Before investing in high-yield US stocks, consider:
- Dividend payout ratios
- Company debt levels
- Industry outlook
- Historical dividend growth
- Market position strength
- The GBP/USD or EUR/USD exchange rate (for UK and European investors)
How to invest in dividend stocks
- Research thoroughly and identify suitable dividend stocks
- Consider your investment timeline and income needs
- Open a live account
- Create a diversified portfolio of dividend stocks
- Monitor company performance and dividend sustainability
Risk management
While high yields can be attractive, investors should:
- Diversify across sectors
- Monitor payout ratios
- Consider company fundamentals
- Watch for industry trends
- Review dividend coverage ratios
Looking ahead
As interest rates may decline in 2025, dividend stocks could gain attention from income-seeking investors. However, selectivity is crucial, focusing on companies with sustainable payouts and strong market positions.
Remember that past dividend payments do not guarantee future distributions, and thorough research is essential before making any investment decisions.
This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
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