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. Enterprise 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 presents an attractive opportunity with its 6.2% yield. The company's position as North America's largest natural gas utility provider underpins its three-decade streak of dividend increases. Its business model also generates significant cash flow which reassures investors.
Meanwhile, telecommunications stalwart Verizon offers a compelling 6.3% yield. Despite sector challenges, its strong market position, consistent cash flow generation and 5G expansion plans support dividend sustainability.
Top 1-year share price performers
Real estate income opportunities
Investment trusts like Realty Income Corporation, a real estate investment trust (REIT), aptly nicknamed "The Monthly Dividend Company," provide regular income through its 5.7% yield. It has increased its payout for 30 consecutive years, including 109 straight quarters. The REIT's focus on retail properties with long-term leases helps maintain stable cash flows.
Consumer staples and healthcare
Kraft Heinz's 3% yield, while lower than some peers, is supported by its strong brand portfolio and essential consumer products focus. Similarly, Johnson & Johnson's 3% yield is backed by its diverse healthcare operations and consistent financial performance. Its consistent performance and commitment to shareholder returns make it a reliable choice for dividend investors.
Bottom 1-year share price performers
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 share dealing 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 potentially decline in 2025, dividend stocks could see increased attention from income-seeking investors. However, selectivity remains crucial, focusing on companies with sustainable payouts and strong market positions.
Remember that past dividend payments don't 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 Markets Limited. 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. See full non-independent research disclaimer and quarterly summary.
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