Stocks with Highest Dividends to Watch in 2025
Investing in high-dividend stocks is one of the smartest strategies for generating passive income and building long-term wealth. In this article, we highlight the top stocks with the highest dividends in 2025—covering yield percentages, sectors, and key risk factors to consider.
What Is a Dividend Stock?
A dividend stock is a company that regularly returns a portion of its profits to shareholders. These payouts are called dividends, and they’re typically distributed quarterly.
Dividend yield is calculated as:
Dividend per Share ÷ Share Price × 100
Top High-Dividend Stocks in 2025
Here are some of the highest-yielding stocks as of Q2 2025:
| Ticker | Company Name | Dividend Yield | Sector |
|---|---|---|---|
| ZIM | ZIM Integrated Shipping | 14.0% | Transportation |
| NLY | Annaly Capital Management | 11.3% | Mortgage REIT |
| PDI | PIMCO Dynamic Income Fund | 12.4% | Fixed Income ETF |
| MO | Altria Group Inc. | 9.2% | Consumer Staples |
| OHI | Omega Healthcare Investors | 8.5% | REIT – Healthcare |
| ARCC | Ares Capital Corp | 9.6% | BDC – Financial |
| VZ | Verizon Communications | 6.6% | Telecom |
| ENB | Enbridge Inc. | 7.3% | Energy Infrastructure |
Note: Dividend yields are based on current market data and may vary.
Benefits of High Dividend Stocks
- 💰 Consistent income for long-term investors
- 📉 Reduced volatility in bear markets
- 🔁 Dividend reinvestment boosts compounding
- 🔒 Reliable companies often pay consistent dividends
Risks of High-Yield Dividend Stocks
- Yield traps: Extremely high yields may indicate financial instability
- Dividend cuts: Risk increases if payout ratio exceeds earnings
- Sector risk: REITs and MLPs are sensitive to interest rate changes
- Tax complexity: Some dividends may be taxed at a higher rate
How to Choose the Right High-Dividend Stocks
Look for:
- Dividend yield between 4% and 9%
- Sustainable payout ratios (<75%)
- Strong free cash flow and balance sheets
- Companies with dividend growth history
- Sectors like utilities, REITs, energy, telecom, and financials
Dividend ETFs with High Yields (Bonus Picks)
- VYM – Vanguard High Dividend Yield ETF
- SCHD – Schwab U.S. Dividend Equity ETF
- HDV – iShares Core High Dividend ETF
- JEPI – JPMorgan Equity Premium Income ETF
FAQs
Q1. Are high dividend stocks safe to invest in?
They can be, if the company has stable earnings and a reasonable payout ratio. Always research before investing.
Q2. Can dividend stocks provide monthly income?
Yes. Some stocks and REITs (like Realty Income – ticker O) pay monthly dividends.
Q3. What is a good dividend yield in 2025?
Anything between 3% and 7% is considered healthy and sustainable.
Q4. Should I reinvest dividends or take cash?
If you’re growing wealth, reinvest. If you’re retired, taking cash may make sense.
Q5. Can I lose money with dividend stocks?
Yes. Stock prices can fall even if dividends are paid, so consider both capital appreciation and income.
