- In 2025, income investors will be facing the problem of a low dividend yield. The average for the S&P 500 has fallen below 1.2%. Nevertheless, dividend investing retains its appeal as a long-term strategy.
- High dividend stocks are an important factor in increasing portfolio income. However, this type of asset carries increased risks. This is particularly the case for companies with a dividend yield of over 10%.
- One option for capital deployment to generate passive income is dividend funds. The advantage of these funds is that they offer instant diversification.
In this article, we will answer the question, ‘What are good dividend stocks?’ We will also provide examples of good dividend stocks 2025.
Table of Contents
Top Wall Street Analyst Picks for Dividend Stocks
One method of selecting dividend stocks is to study analyst recommendations. On TipRanks, for example, you can find buy ratings and information on price targets. The three securities below are considered good dividend stocks. This list is based on forecasts from Wall Street analysts.
CVS Health – Healthcare Dividend Play with Turnaround Potential
CVS Health (CVS) is a company that operates a pharmacy chain, an insurance company and a pharmacy benefits manager. According to a Morgan Stanley analysis, this integrated model gives the company a dominant position in the market.
This security made the list of good dividend stocks for two reasons:
- healthcare dividends are considered a stable source of earnings;
- the CEO change in 2024 could become a turnaround story for CVS Health.
The company will pay shareholders $0.665 per share in the autumn. The forward dividend yield is 3.47%.
Williams Companies – Energy Infrastructure Growth Story
Williams Companies (WMB) is a good dividend stock for investing in energy infrastructure. The company is involved in the production of natural gas and oil, and owns two major pipelines. It has pipeline capacities of 16.8 and 3.8 billion cubic feet per day. WMB is expanding the capacity of its data centers and stands to benefit from the growing volume of LNG exports from the US.
The forward dividend yield stands at 3.19%. The latest quarterly dividend was $0.50 per share. The company has increased its dividends for seven consecutive years.
Chord Energy – High-Yield Oil & Gas with Strong Cash Flow
Chord Energy (CHRD) is another option for investors seeking an oil and gas dividend. The company primarily engages in energy exploration in the Williston Basin in North Dakota and Montana. CHRD recently announced the acquisition of additional assets. Analysts believe this will increase free cash flow. Consequently, the company has compiled a list of good dividend stocks to buy.
A key issue is the variable dividend. In 2024, for example, the company paid a total dividend of $10.15 per share. In 2025, Chord Energy paid a quarterly dividend of $1.30 per share on three occasions. The dividend yield is 5.61%. The company’s ownership structure is dominated by institutional investors.
Monster High-Yield Dividend Stocks (10%+ Yields)
Monster dividend stocks contribute to the cash flow growth generated by an investor’s portfolio. However, they are also associated with significant risks. High yield can be found by paying attention to, for example, chemical company dividends.
However, high yield dividends most often come from REIT dividends (real estate investment trusts) and MLP (master limited partnerships) distributions. Such assets have a number of legislative peculiarities. For instance, they cannot be categorized as ‘qualified dividends’ since REITs and MLPs are ‘pass-through’ entities.
Below are some examples of good dividend stocks that offer a high yield and relatively stable dividend payments. This list is not intended as an investment recommendation.
AGNC Investment – 14.4% Yield Mortgage REIT
AGNC Investment (AGNC) is one example of good monthly dividend stocks. This mortgage REIT deals with agency MBS. Thanks to its leverage strategy, the company achieves a return on equity of up to 20%.
AGNC is an example of a balance between high risk / high reward. AGNC’s monthly dividend is currently set at $0.12 per share. Its forward dividend yield is 14.41%. The company’s stock could be included in a list of good dividend stocks under $20. As of mid-October 2025, its NASDAQ price was $10.05.
LyondellBasell Industries – 10.5% Yield Chemical Giant
LyondellBasell (LYB) lost half of its market capitalization over the course of the year due to difficulties in the market. However, despite being a cyclical business, the chemical company dividend has grown for 13 consecutive years. LYB made the list of good dividend stocks thanks to its effective cost management. The company has also compensated for the decline in revenue through asset sales.
The quarterly dividend amount is $1.37. The forward dividend yield is 11.84%. A key risk factor is the high payout ratio of 670.57%. The company is also facing challenges in debt reduction and investment in production. If the negative trend in net income remains, the company may reduce dividends and scale back its share repurchase program.
Delek Logistics Partners – 9.8% MLP Distribution
Another entry on the list of good dividend stocks is Delek Logistics Partners (DKL). The company is involved in energy midstream transportation. DKL is heavily dependent on Delek US Holdings. However, this dependency is decreasing as revenue from third-party growth increases. The company is expanding this segment through new investments.
The forward dividend yield stands at 10.33%. There has been a streak of robust distribution growth for 11 years. However, the tax specifics of the MLP distribution must be considered.
Best Dividend ETFs and Mutual Funds for Long-Term Investors
Not all investors want to spend time searching for dozens of good dividend stocks in order to build a diversified portfolio. One way to generate passive income is through dividend ETFs and dividend mutual funds.
However, the question of selection criteria arises. One possible factor could be Morningstar ratings. The Morningstar Medalist Rating system evaluates investment strategies based on three key components:
- people;
- parent company;
- process.
There is an opinion that the efficiency of dividend funds with a Gold or Silver rating over the long term outperforms the results of funds with lower ratings.
In September 2025, Morningstar published a list of 15 top-rated fund selections.
High-Dividend vs Dividend-Growth Fund Strategies
Dividend funds can employ one of two investment strategies. The first category is high dividend funds. Their assets include high-yielding dividend payers. These include companies that are vulnerable to interest rate risk, such as mortgage REITs.
The second category is dividend growth funds. These funds invest in high-quality, dividend-paying companies. The current yield of these funds is lower. However, these funds offer more stable distributions and a high probability of future dividend growth.
The screenshot below illustrates the growth of an investment of $10,000 in the Vanguard High Dividend Yield ETF (VYM) and the Vanguard Dividend Appreciation ETF (VIG) over 10 years.
Source: portfolioslab.com
When building a portfolio, it is important to consider sector allocation, regardless of the investment strategy type.
The 7 Best High-Yield Individual Stocks for Income Investors
Below is an overview of seven good dividend stocks to buy now. These are the best high yield stocks, selected based on dividend risk scores. They offer a combination of above-average yield and high dividend safety, making them ideal for portfolio diversification. However, this overview of income securities does not constitute an individual investment recommendation.
Top 3 High-Yield Picks – Altria, Enterprise Products, and Shutterstock
Three companies top the list of good dividend stocks:
- Altria Group (MO) has a yield of 6.48%. Tobacco dividends are considered to have a high safety rating because the demand for such companies is stable and non-cyclical.
- Enterprise Products Partners (EPD) has a dividend yield of 7.08%. The MLP distribution, which is involved in the transportation of oil and natural gas, increased by 3.85% year-over-year in 2025. It has achieved consecutive growth for 26 years.
- Shutterstock (SSTK). The Shutterstock dividend provides a yield of 5.3%. There is also an opportunity to profit from merger arbitrage. In early 2025, Shutterstock announced a planned merger with Getty Images.
Mid-Tier High-Yield Selections – Utilities and Infrastructure
Utility dividends are considered stable thanks to their predictable demand. The same applies to companies that earn income from property rentals. Renewable energy investments and energy infrastructure also have good growth prospects.
The second part of the list of good dividend stocks comprises four companies:
- Edison International (EIX) with a yield of 5.91%.
- HA Sustainable Infrastructure (HASI). Hannon Armstrong Sustainable Infrastructure yield is 5.63%.
- Algonquin Power & Utilities (AQN) with a dividend yield of 6.66%.
- NNN REIT Inc. (NNN) (formerly National Retail Properties, Inc.) with a yield of 5.68%.
Algonquin Power & Utilities can be included in the list of good dividend stocks under $10. Its current price on the NYSE is $5.89.
High-Dividend Stock Risks and Risk Management
Why are dividend stocks good? Investors value this asset class because it generates passive income. Even during crises, these stocks continue to generate cash flow. Consequently, dividend-paying stock price volatility is lower than that of growth stocks.
However, investing in this asset class does carry risks. The primary risk is the possibility of dividend cuts due to business decline risk. This often leads to a drop in the company’s stock price.
Even when discussing good dividend stocks, the dividend investing risks persist. Investing in stocks with good dividend yield can be even riskier. Attractive yield figures are often a consequence of a decline in the stock’s market price. Investors must understand the reasons for this. Otherwise, there is a risk of falling into a dividend trap.
There are a number of signs indicating a high probability of future dividend cuts:
- high payout ratios;
- declining revenue and profit;
- increasing debt.
How to Calculate Monthly Dividend Income from Your Portfolio
Good dividend stocks portfolio income planning requires consideration of dividend payment frequency. Fewer than 80 companies listed on US exchanges pay monthly dividends. Therefore, it is difficult to create a portfolio that generates the same amount each month. Most companies pay quarterly.
You can calculate your average monthly dividend income as follows:
- Calculate the annual dividend per share.
- Multiply the annual dividend amount by the number of shares held in the portfolio.
- Repeat steps 1 and 2 for each company whose shares are included in the portfolio.
- Add together all the amounts obtained in step 2.
- Divide the final number by 12.
You can also perform dividend yield calculations on the portfolio. To calculate this, simply divide the annual dividend income by the portfolio’s cost.
Advanced Dividend Investment Strategies and Fund Selection
Investors can participate in global dividend exposure through international dividend funds. Dividend fund selection should include:
- Assessing the focus. Investors need to establish which markets and economic sectors the fund covers.
- Studying the strategy. The first option involves building an asset base consisting of stocks that currently offer high dividends. The second option involves investing in stocks with the prospect of future dividend growth. In this case, the fund’s payouts will gradually increase.
- Evaluating key fund metrics. This includes the expense ratio, among others.
Various fund screening tools exist to simplify the investor’s task. One example is the Morningstar screener.
FAQ – Frequently Asked Questions About Dividend Investing
The Dividend Investing FAQ section contains a brief guide for beginner investors, explaining the income investing basics and clarifying high yield risks. It also answers dividend fund questions and discusses whether to prioritize high dividend vs growth of dividends when adjusting a portfolio.
Should I choose high-dividend stocks or dividend-growth stocks for my portfolio?
The portfolio allocation between high dividend stocks and dividend growth stocks depends on the investment strategy. When deciding on the ratio of current income vs growth of dividends, it is important to consider existing financial needs, long-term goals and the investment timeframe.
What are the main risks of investing in high-yield dividend stocks?
The main high yield dividend risks are dividend cut risks and the subsequent decline in the stock price. A reduction in payouts may be linked to a business decline resulting from interest rate sensitivity, changes in market conditions and other factors. Losses are especially likely in the case of excessive high-yield sector concentration in the portfolio.
Do I need dividend-specific funds if I already own large-cap index funds?
Large cap index fund assets comprise dividend-paying stocks. Dividend fund overlap does not lead to good investment diversification. Dividend fund allocation should prevent excessive portfolio concentration in high-risk sectors.
How do I determine if a dividend is sustainable before investing?
An in-depth dividend sustainability analysis includes an assessment of business quality indicators, payout ratios and cash flow coverage ratios. A long payment history is considered an indirect indicator of dividend safety.
What’s the difference between dividend ETFs and mutual funds for income investing?
When choosing between dividend ETFs vs mutual funds, it is important to consider cost structures and trading flexibility. It is also important to understand the differences in management approaches. Unlike ETFs, mutual funds typically employ an active strategy. This affects costs and tax efficiency.
Article Sources
- CNBC (2025). “Top Wall Street analysts recommend these dividend stocks for income investors.” September 21, 2025. Financial news analysis featuring CVS Health, Williams Companies, and Chord Energy dividend recommendations from Morgan Stanley, Stifel, and Siebert Williams Shank analysts.
- The Motley Fool (2025). “3 Monster Dividend Stocks With Yields as High as 14.4%.” September 23, 2025. Investment analysis covering AGNC Investment, LyondellBasell Industries, and Delek Logistics Partners high-yield dividend opportunities and associated risks.
- Morningstar (2025). “The Best Dividend Funds.” Fund research publication detailing 16 top-rated dividend ETFs and mutual funds with Gold and Silver Medalist Ratings, including analysis of dividend-growth versus high-dividend investment strategies.
- SureDividend (2025). “2025 High Dividend Stocks List | Highest Yields Up To 19.8%.” Updated July 10, 2025. Comprehensive research database analysis of 850+ income securities featuring the 7 best high-yield stocks with dividend risk scores and detailed financial metrics.
