Unveiling High Dividend Stock Recommendations in the US Market | How to Choose These 5 Stocks in 2025?

Looking for stable income in a volatile market? Instead of chasing skyrocketing / surge growth stocks, turn your attention to those mature companies that consistently pay dividends. Currently in the US stock market, finding truly high-dividend stocks is not difficult; the key is knowing what to look for.

According to the latest data, the average dividend yield of the S&P 500 is only 1.2%, hitting a 20-year low. However, there are still some undervalued value stocks with dividend yields exceeding 5%. Today, we will delve into the top 5 most worth paying attention to.

Understand the stock selection logic first, then buy

If you want to invest in high-dividend stock recommendations, you can’t just look at the dividend yield alone. The true stock selection process involves four steps:

Step 1: Industry + company double screening

Choose 1-3 leading companies within industries you are familiar with or optimistic about. These companies should have stable income, ample cash flow, and sustainable development features. Don’t be fooled by small companies with high dividend yields; stability is the hard truth.

Step 2: Look at economic cycle performance

Select companies that have experienced 5-10 years of economic fluctuations but still maintain relatively stable profits. Companies that can withstand financial crises and recessions, with reliable dividend commitments.

Step 3: Track dividend history

Review dividend records over the past 5 years. Choose companies with stable dividends or increasing dividends year by year, and compare whether their dividend policies are reasonable. Be cautious of companies that frequently adjust payout ratios or have low payment frequency.

Step 4: Horizontal comparison of dividend yields

Calculate and compare the dividend yields of different companies within the same industry. If a company’s dividend yield is significantly lower, find out whether it is preparing for adverse conditions or using the cash for other purposes.

Top 5 high-dividend stocks to watch in 2025

1. Brookfield Renewable (BEPC) - The dividend king in the renewable energy sector

Owning the world’s largest pure renewable energy investment portfolio with an installed capacity of 6,707 MW. Its assets include 204 hydroelectric facilities (including 72 river system hydro stations), 28 wind farms, and 2 natural gas power plants, operating across Canada, the US, and Brazil in 13 power markets.

Q3 2024 data is impressive: revenue of $4.444 billion, up 19.62% YoY; net profit of -$197 million (common during transition periods). JP Morgan maintains an overweight rating with a target price of $28.00. Annual dividend yield of 5.60%, with the stock price down 16.23% over the past five years, making it a good long-term investment opportunity.

2. Enbridge (ENB) - 22 years of dividend growth in energy infrastructure

A typical energy infrastructure company, covering liquid pipelines, natural gas transportation and storage, renewable energy generation, and more. Its biggest highlight is 22 consecutive years of dividend growth, currently offering a yield of up to 6%.

Royal Bank of Canada recently adjusted its target price to $63.00 (previously $59.00), maintaining an outperform rating. Dividend yield of 6.03%, with a 9.85% increase over the past five years, making it one of the rare stocks that can both pay dividends and appreciate in value.

3. Realty Income (O) - The stable dividend machine in real estate investment trusts

Focused on acquiring and managing single-tenant commercial real estate, operating through long-term net lease agreements. Currently owns 12,237 properties with a leasable area of 236.8 million square feet, of which 12,111 are leased.

Q3 2024 revenue is $3.931 billion, up 30.91% YoY; net profit of $666 million. Stifel maintains a buy rating with a target price of $66.50. Dividend yield of 5.80%, but the stock price has fallen 25.98% over the past five years, so valuation risk should be considered.

4. Verizon (VZ) - The telecom giant’s high dividend commitment

The largest telecom service provider in the US and one of the Dow Jones 30 components. Main business includes voice calls, fixed broadband, and wireless communications. Its subsidiary Verizon Wireless dominates the US wireless market.

Q4 2024 revenue is $35.7 billion, up 1.7% YoY, exceeding expectations. Bank of America maintains a hold rating with a target price of $45. Dividend yield of 6.99% (highest in the market), but the stock price has fallen 35.01% over the past five years, requiring assessment of its long-term business transformation prospects.

5. Vici Properties (VICI) - Emerging dividend powerhouse in casino real estate

Founded in 2016, focusing on owning casino, hotel, and entertainment properties. Its portfolio includes 93 experiential assets (54 in US and Canada casinos, 39 other facilities), including iconic properties like Caesars Palace, MGM Grand, and The Venetian.

Q3 2024 revenue is $2.873 billion, up 7.2% YoY; net profit of $2.097 billion. Barclays gives a buy rating with a target price of $36. Dividend yield of 5.89%, with a 12.07% increase over the past five years, combining growth and dividends.

Why focus on high-dividend stock recommendations in 2025?

Earnings growth drives dividend increases

Although profit growth was sluggish in 2023, it rebounded starting in 2024. Historically, there is usually a three-quarter lag between earnings growth and dividend increases. Given that the S&P 500 earnings per share accelerated over the past year, dividends in 2025 are likely to increase accordingly.

Many Wall Street investment banks are optimistic about the 2025 dividend outlook: Goldman Sachs expects S&P 500 EPS to grow 11% (vs. 8% in 2024), driving a 7% dividend growth (vs. 6% in 2024); Bank of America forecasts dividend growth of up to 12%; S&P Dow Jones Index analysts project an average increase of about 8%, with total dividends reaching a record high of $685 billion for the year.

A safe haven amid market uncertainty

In 2024, US stocks mainly relied on AI hype and rate cuts for support. The macroeconomic outlook for 2025 remains uncertain. Allocating high-dividend stock recommendations now can provide stable cash returns and diversify risks.

Three advantages of high-dividend stocks

Continuous cash flow

Mature companies have a long history of dividends, stable profits, and ample cash flow, capable of providing investors with generous returns.

Risk resistance moat

Companies with large market size and solid industry position are less affected by market fluctuations, making them more resilient than growth stocks.

Portfolio balancing tool

High-dividend stocks often come from traditional industries, helping balance portfolios overly concentrated in tech and high-growth sectors, achieving true diversification.

Final reminder

Not all high-dividend stocks are worth buying. Some companies with high debt ratios, unstable profits, or questionable business models may adjust or suspend dividends at any time. Do your homework before investing: study financial statements, compare peers, listen to analyst opinions, and make decisions based on your risk tolerance. Remember, the key to high-dividend stock recommendations is not just the yield itself, but whether the profitability behind that yield is reliable.