High Dividend Yield U.S. Stocks: Top Picks and In-Depth Analysis of 5 Selected Dividend Stocks for 2025

Current U.S. Stock Dividend Environment Scan

In 2024, the U.S. stock market is surging fiercely, but this has also brought about a phenomenon—the dividend yield has actually contracted. The average dividend yield of the S&P 500 is now only 1.2%, approaching a 20-year low, which is not friendly to investors who rely on dividends as a primary income source.

However, the market is not entirely without opportunities. There are still some undervalued value stocks with annual dividend yields exceeding 5%, and even approaching 7%. These stocks are spread across traditional defensive sectors such as energy, real estate investment trusts (REITs), and telecommunications. Based on the latest data (as of January 23, 2025), we have screened out 10 high-yield targets, with the most notable performances including:

It’s worth noting that some high-yield stocks have seen their share prices decline in recent years, which has actually resulted in higher dividend yields—precisely the hunting ground for value investors.

Deep Dive into 5 High-Yield U.S. Stocks

1. Brookfield Renewable — Global Leader in Renewable Energy

Brookfield Renewable controls the world’s largest pure renewable energy investment portfolio, with an installed capacity of 6,707 MW. Its portfolio includes 204 hydroelectric facilities, 72 river system hydro stations, 28 wind farms, and 2 natural gas power plants, spanning 13 electricity markets across Canada, the U.S., and Brazil.

This diversified asset layout is Brookfield Renewable’s core advantage—regardless of regional fluctuations in electricity demand, stable income from other markets can hedge against volatility. The Q3 2024 report shows revenue of $4.444 billion (up 19.62% YoY), despite a net loss of $197 million, mainly due to interest and tax costs, which do not affect cash dividend capacity. JP Morgan maintains an overweight rating with a target price of $28.

2. Enbridge — North America’s Energy Infrastructure Backbone

Enbridge is not a power generator but a key player in energy transportation. Its liquids pipeline division transports Canadian and U.S. crude oil and liquids, while its natural gas segment covers transportation, storage, and distribution across the entire value chain. It also has renewable energy and energy services businesses.

What stands out most is its dividend record—22 consecutive years of dividend growth, with a current yield of 6%. Royal Bank of Canada recently raised its target price to $63 (from $59) and assigned an “outperform” rating. The long-term dividend growth record itself is a testament to the company’s stable cash flow.

3. Realty Income — Monthly Dividend REIT

Realty Income is the largest single-tenant commercial real estate investment trust in the U.S., owning over 12,237 properties with a leasable area of 236.8 million square feet. Its business model is straightforward—sign long-term net leases with tenants who bear maintenance costs, and Realty Income collects rent.

Q3 2024 results show revenue of $3.931 billion (up 30.91% YoY), net income of $666 million, and EPS of $0.75. Known for its “monthly dividend” payments, it is a cash flow pillar for many retirees. Stifel analysts maintain a buy rating with a target price of $66.50.

4. Verizon — Telecom’s Steady Cash Cow

As a component of the Dow Jones Industrial Average and the largest wireless service provider in the U.S., Verizon’s main businesses include voice calls, fixed broadband, and wireless communications, with a large and highly loyal customer base.

Q4 2024 revenue reached $35.7 billion (up 1.7% YoY), exceeding expectations. The telecom industry’s characteristics—highly predictable revenue, stable customer renewal rates, and clear pricing power—support this. Bank of America maintains a hold rating with a target of $45, and a dividend yield of 6.99%, among the top in telecom stocks.

5. Vici Properties — Rising Star in Casino REITs

VICI Properties focuses on acquiring and holding casino, hotel, and experiential assets, with 93 properties including Caesars Palace, MGM Grand, and The Venetian in Las Vegas. These properties are protected by triple-net lease agreements, meaning operators bear most costs and risks.

Q3 2024 revenue was $2.873 billion (up 7.2% YoY), net income $2.097 billion, and EPS $1.98. Barclays recently initiated a buy rating with a target of $36. The recovery of casino assets has been a key driver of its strong performance.

Key Financial Snapshot of the 5 High-Yield Stocks:

Why Consider High-Yield U.S. Stocks Now

In 2024, AI boom has driven U.S. indices to new highs, but whether this rally can continue remains uncertain. Macroeconomic volatility may intensify market sentiment swings in 2025. Holding stocks with stable dividends acts like a “shock absorber” in your portfolio.

Dividend Growth Logic Chain: Earnings growth → Dividend increase, usually lagging three quarters. In 2023, S&P 500 earnings were weak, but a rebound is expected from 2024 onward. Major Wall Street investment banks are optimistic about dividend growth in 2025:

• Goldman Sachs forecast: S&P 500 earnings per share will grow 11% (vs. 8% in 2024), driving dividend growth of 7% (vs. 6% in 2024)
• Bank of America forecast: Accelerating earnings could lead to a 12% dividend increase
• S&P Dow Jones Index analyst Howard Silverblatt predicts: Average dividend increase of about 8%, with total dividends reaching a new high of $685 billion (vs. $630 billion in 2024)

This means that buying these stocks now can lock in yields above 5%, while also potentially benefiting from accelerated future dividend growth.

How to Systematically Select High-Yield U.S. Stocks

Investing in high-dividend-yield U.S. stocks requires more than just looking at the yield number; a systematic evaluation is essential. The following four-step framework helps identify true “cash cows”:

Step 1: Company Fundamentals Review

Select 1-3 leading companies within your interested sectors, and thoroughly analyze their financial health, profitability, and future prospects. Key points include: stable revenue growth, ample cash flow, reasonable debt levels, and sustainable business models.

Step 2: Earnings Volatility Test

Choose companies that have experienced 5-10 years of economic cycles with relatively stable earnings. Such companies are capable of maintaining dividends during downturns, avoiding “dividend traps” (high yield but unsustainable payout policies).

Step 3: Dividend History and Policy Evaluation

Review the company’s dividend record over recent years. Prioritize those with stable or increasing dividends, and understand their payout policies—whether aggressive or conservative, and if payout ratios are reasonable. Avoid stocks with infrequent dividends or payout ratios inconsistent with their business model.

Step 4: Dividend Yield Rationality Analysis

Calculate the dividend yield; if it is significantly above industry average, investigate the reasons. Is it a defensive move due to adverse conditions, or are funds being diverted elsewhere, reducing reinvestment? Clarify these before making a decision, and prefer stocks with reasonable payout policies.

After completing these four steps, consult the latest analyst opinions and ratings to make an informed decision, avoiding chasing highs or missing opportunities.

Core Advantages of High-Yield U.S. Stock Investing

• Stable Cash Flows: Long-term dividend-paying companies provide continuous cash returns, especially valuable for retirees or conservative investors
• Solid Business Foundations: These companies are often long-established, with stable market positions, proven profitability, and ample cash reserves
• Capital Appreciation Potential: The company’s growth potential, combined with dividend payments, offers dual benefits of “interest + capital gains”
• Risk Buffering: Compared to small growth stocks, mature companies have stronger risk resilience, with limited downside during market volatility
• Portfolio Diversification Tool: High-yield stocks are mostly from traditional sectors (energy, real estate, telecom), with low correlation to tech growth stocks, helping diversify risk

Risks Not to Overlook

High-yield stocks are not completely safe hedges; hidden risks include:

• Dividend Policy Changes: Companies with high debt or unstable earnings may cut or suspend dividends
• Interest Rate Risk: Rising rates make bonds and alternatives more attractive, potentially pressuring high-yield stocks
• Industry Decline Risk: Some traditional sectors (e.g., coal, fossil fuels) face long-term structural decline, which could threaten dividend sustainability
• Inflation Erosion: High inflation may outpace dividend growth, reducing real income
• Market Rate Increases: If the Fed hikes interest rates again, discount rates rise, putting downward pressure on high-yield stock valuations

Therefore, thorough fundamental research and risk assessment are essential before investing. High yield does not equal high return; only selecting the right stocks allows you to truly enjoy the dividends of high-yield U.S. stocks.