2025 High Dividend US Stocks Overview | 5 Stable Dividend Stocks to Help You Earn Cash Flow

Why 2025 is a Good Time to Position for High-Yield US Stocks

The US stock market has surged aggressively over the past year, but what is the downside of this rally? Dividend yields have been pushed to near-record lows. The current S&P 500 dividend yield is only 1.2%, hitting a 20-year low.

But this presents an opportunity. Many investors are beginning to reconsider — chasing rapid gains in growth stocks may be less practical than steadily collecting dividends. Especially in 2025, when macroeconomic uncertainties remain, companies with stable dividend payouts are gaining renewed attention.

Wall Street is optimistic about the dividend outlook for 2025. Goldman Sachs forecasts that earnings per share (EPS) of S&P 500 constituents will grow by 11% (above 2024’s 8%), driving a 7% increase in dividends. Bank of America Securities is even more aggressive — with profit acceleration, dividends could grow by 12% in 2025. Howard Silverblatt, an analyst at S&P Dow Jones Indices, estimates total dividends paid in 2025 will reach a record $685 billion, up 8.7% from $630 billion in 2024.

What does this mean? Companies with existing dividend bases will further increase their payout ratios, making high-dividend stocks even more attractive.

Market Status: Distribution of Real Yields for High-Dividend Stocks

After last year’s stock market rally, overall dividend yields did face pressure. But the market is not uniformly low-yield. Using a 5% threshold as “high yield,” there are still many undervalued options.

Based on annual dividend yield screening, the following stocks are worth attention:

Data as of January 23, 2025. Source: Yahoo Finance

In-Depth Analysis of 5 High-Dividend US Stocks

1. Brookfield Renewable — Global Clean Energy Giant

Brookfield Renewable owns the world’s largest portfolio of pure renewable energy assets, with a capacity of 6,707 MW. Its footprint is extensive: 204 hydroelectric facilities (including 72 river system hydro stations), 28 wind farms, and 2 natural gas plants, covering 13 power markets in Canada, the US, Brazil, and more.

In Q3 2024, revenue was $4.444 billion, up 19.62% year-over-year. Although net profit for the quarter was negative $197 million, the company remains a key acquisition tool for Brookfield Group’s global renewable assets. JP Morgan maintains an overweight rating with a target price of $28.

Key Metrics: Market cap $4.581 billion, P/E ratio N/A (net profit negative)

2. Enbridge — Reliable Energy Infrastructure

Enbridge operates in liquid pipelines, natural gas transmission and distribution, and renewable energy. Its liquid pipeline division is a leader, responsible for transporting North American crude oil and liquids.

The company boasts an impressive track record — 22 consecutive years of dividend increases, with a current yield of 6%. Latest rating: Royal Bank of Canada raised its target price from $59 to $63, maintaining an “outperform” rating.

Key Metrics: Market cap $97.529 billion, P/E ratio 21.95

3. Realty Income — Stable Cash Cow in Real Estate Investment Trusts

Realty Income focuses on single-tenant commercial real estate, generating stable cash flow through long-term net leases. The company owns over 12,237 properties, with a leasable area of 236.8 million square feet. As of the latest data, 12,111 properties are leased, 126 are vacant.

In Q3 2024, revenue was $3.931 billion, up 30.91% year-over-year. Net profit was $666 million, with EPS of $0.75. Stifel analysts rate it a buy, with a target price of $66.50.

Key Metrics: Market cap $47.253 billion, P/E ratio 51.45

4. Verizon — Telecom Giant with Steady Progress

Verizon is a major US telecom provider and a Dow Jones component. Its services include voice, fixed broadband, and wireless communications. Verizon Wireless is the largest wireless provider in the US.

Q4 2024 revenue was $35.7 billion, up 1.7% YoY, beating expectations of $35.3 billion. BofA Securities maintains a hold rating with a target price of $45.

Key Metrics: Market cap $166.969 billion, P/E ratio 17.17

5. Vici Properties — Yield Generator for the Experience Economy

VICI Properties (founded in 2016) focuses on acquiring casino, hotel, and entertainment assets. Its portfolio includes 93 experiential assets, including 54 casinos in the US and Canada, and 39 other entertainment venues, covering landmarks like Caesars Palace, MGM Grand, and Venice Resort in Las Vegas.

In Q3 2024, revenue was $2.873 billion, up 7.2% year-over-year. Net profit was $2.097 billion, with EPS of $1.98. Barclays initiated a “buy” rating with a target price of $36.

Key Metrics: Market cap $30.877 billion, P/E ratio 10.86

4-Step Stock Selection Framework for High-Dividend US Stocks

Investing in high-dividend US stocks isn’t about luck. Follow these logical steps to find targets that suit your needs.

First Layer — Industry and Company Awareness

Select leading companies within 1-3 industries of interest. Key is to understand their financial health, profitability, and growth trajectory. Confirm that revenue is stable, cash flow is ample, and sustainability is assured.

Second Layer — Profitability Stability Verification

Pick companies that have maintained relatively stable earnings over 5-10 economic cycles. These firms can reliably pay dividends and sustain them, avoiding those with artificially high yields but unstable payouts.

Third Layer — Dividend Policy Evaluation

Review dividend payment history over recent years. Prioritize companies with consistent or increasing dividends. Also, understand their dividend policies — frequency and payout ratios — to exclude unrealistic or unsustainable plans.

Fourth Layer — Reasonableness of Yield

Calculate dividend yield; if it’s low, investigate why — is the company conservative due to difficulties, or are funds allocated elsewhere? If yield is high, beware of potential ongoing payout risks.

Finally, listen to analyst and expert opinions, gauge market sentiment, and make informed decisions to avoid “catching a falling knife” and increasing costs.

Multi-Dimensional Advantages of High-Dividend US Stocks

Stable Cash Returns

The primary advantage of high-yield stocks is cash flow. Established, long-standing companies with mature business models can consistently pay dividends, providing investors with steady income. This is essential for income-focused investors.

Predictable Profitability

These companies often have stable earnings and abundant cash flow. Predictable income makes dividend payments more certain, reducing the risk of sudden cuts.

Potential for Capital Appreciation

Mature companies are not stagnant. They continue evolving and growing, which can drive stock price appreciation. The combination of dividends and capital gains offers compelling investment appeal.

Superior Risk Resistance

Compared to startups or small caps, large, stable firms have higher market resilience. Their size and stability make them less vulnerable to market volatility, with lower risk of losses.

Portfolio Balance

Including high-dividend stocks in a portfolio helps diversify risk away from high-growth stocks. The stability of traditional industries complements the growth potential of other stocks, leading to a more balanced investment.

Risk Alerts and Investment Recommendations

High-dividend US stocks are not foolproof. Be aware of risks before investing:

Companies with high debt, volatile earnings, or questionable business models may face dividend cuts or suspensions at any time. High yields can be tempting but hide payout risks.

Therefore, thorough research is essential — analyze financials deeply, assess your risk tolerance, and balance risk and reward. Only then can you enjoy steady dividends while avoiding the pitfalls of chasing high yields.