World Stock Watch

High-Yielding Dividend Stocks: A Smart Investment Option

In today’s financial landscape, investors are spoiled for choice when it comes to generating returns. With short-term interest rates still hovering above 4%, savings accounts offer a relatively attractive yield. However, for those seeking higher returns, dividend-paying stocks could be an attractive alternative.

The Power of Dividend Yields

Companies that pay dividends can provide a steady stream of income, and if well-managed, can increase their payouts over time. This, in turn, can support higher stock prices in the long run. With the Federal Reserve having made two cuts to the federal-funds rate since September, the environment remains favorable for savers. However, political pressure is mounting for further rate cuts, making it essential to explore alternative investment options.

Top Dividend Stocks for 2025

We’ve identified 10 highly regarded dividend stocks with yields of at least 4%, based on analyst ratings and dividend yield data from FactSet. These companies have a strong track record of paying dividends and have not cut their regular quarterly dividend in the past five years.

The Top 10 Dividend Stocks

1. AES Corp. (AES): 5.29% dividend yield, with a potential upside of 55% over the next year.
2. HA Sustainable Infrastructure Capital Inc. (HASI): 5.29% dividend yield, with a potential upside of 27% over the next year.
3. Hasbro Inc. (HAS): 4.30% dividend yield, with a potential upside of 22% over the next year.
4. Upbound Group Inc. (UPBD): 4.30% dividend yield, with a potential upside of 19% over the next year.
5. Clearway Energy Inc. Class C (CWEN): 5.61% dividend yield, with a potential upside of 16% over the next year.
6. Sonoco Products Co. (SON): 4.01% dividend yield, with a potential upside of 15% over the next year.
7. PotlatchDeltic Corp. (PCH): 4.01% dividend yield, with a potential upside of 14% over the next year.
8. CVS Health Corp. (CVS): 4.44% dividend yield, with a potential upside of 11% over the next year.
9. Starwood Property Trust Inc. (STWD): 9.43% dividend yield, with a potential upside of 10% over the next year.
10. Vici Properties Inc. (VICI): 5.31% dividend yield, with a potential upside of 9% over the next year.

Remember to Do Your Own Research

While these stocks offer attractive dividend yields, it’s essential to conduct your own research and form an opinion about each company’s long-term viability. Click on the tickers to access more information and make informed investment decisions.