Best High Dividend Stocks To Watch and Invest In Right Now
Written by
Rudri Patel
Edited by
Joe Evans
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If you’re looking to grow your money with less drama and more reliability, high-dividend stocks might be exactly what your portfolio needs. In 2025, many investors are turning to dividend-paying stocks for steady income, portfolio diversification and long-term growth potential. However, not all dividend stocks are created equal.
In this guide, we’ll break down the best high-dividend stocks to watch or invest in this year.
Whether you’re a beginner investor or just looking to boost your income stream, you’ll find clear, actionable insights to help you make smart investing decisions.
Best High-Dividend Stocks in 2025
Here are some top picks based on dividend yield, company strength and recent performance:Â
| Stock | Ticker | Market Cap | Dividend Yield | Current Share Price | Annual Dividend |
|---|---|---|---|---|---|
| AbbVie Inc. | ABBV | $313.43 Billion | 3.55% | $177.44 | $6.56 |
| Chevron | CVX | $245.37 Billion | 4.97% | $137.73 | $6.84 |
| Phillips Morris International | PM | $255.32Â Billion | 3.11% | $173.17 | $5.40 |
| Home Depot | HD | $370.55Â Billion | 2.41% | $379.25 | $9.20 |
| Coca Cola | KO | $297.68 Billion | 2.84% | $71.94 | $2.04 |
| American Electric Power | AEP | $52.67 Billion | 3.59% |
$103.78 |
$3.72 |
| Johnson & Johnson | JNJ | $352.15 Billion | 3.39% | $152.52 | $5.20 |
| Duke Energy | DUK | $91.2 Billion | 3.56% | $116.99 | $4.20 |
Bonus Pick: Vanguard High Dividend Yield ETF (VYM)
- A basket of reliable dividend payers
- Yield around 3% with built-in diversification
Why Invest in High-Dividend Stocks?
High-dividend stocks are appealing for many reasons. Here are four reasons to invest:
- Steady income stream: You usually receive a quarterly payment with high-dividend stocks.
- Indicates a healthy company: If a company is distributing dividends, this indicates that the company is doing well.Â
- A chance to reinvest: You can reinvest your dividends, which boosts long-term growth.Â
- Lower volatility: A high-dividend stock tends to have fewer dips during market downturns. Â
High-Dividend Stocks vs. Other Investment Options
How do high-dividend stocks compare to other investments? Check out this chart that compares high-dividend stocks with other investment options.Â
| Investment Type | Pros | Cons |
|---|---|---|
| High-dividend stocks | -Regular income -Ideal for retirees  -Lower volatility |
-Dividend cuts could happen -Sensitive to interest rate changes -Slower capital appreciation |
| Growth stocks | -Strong earnings growth -Ideal for compounding -High upside |
-Often no dividends -High volatility -Valuation risk |
| Non-dividend stocks | -Generally strong returns -Low fees -Diversified exposure |
-Market dependent -Lower short-term gains -Lacks specific sector upside |
| ETFs | -Good diversification opportunity -Easy to invest and manage |
-Fees for management -Less control over holdings |
| Real Estate (REITs) | -Regular income -Inflation hedge  |
-Speculative -Regulatory concerns   |
Risks of Investing in High-Dividend Stocks
Do high-dividend stocks carry any risks? Every investment has its inherent risks. There are three risks with high-dividend stocks:
- Dividends can be cut or reduced: If a company is experiencing financial upheaval, dividends can be slashed.Â
- Subject to interest rate fluctuations: When interest rates are high, certain high-dividend stocks tend to underperform.Â
- Could be a yield trap: A high dividend sometimes means a company’s stock price has dropped because of financial instability.Â
Trends Shaping Dividend Stocks in 2025
Here’s what’s moving the needle in this space right now:
- Interest Rate Stabilization: As the Fed holds or potentially cuts rates, dividend stocks regain appeal.
- REIT Recovery: Real estate stocks like Realty Income are rebounding with consumer foot traffic.
- Energy Sector Momentum: Companies like ExxonMobil benefit from global demand and rising oil prices.
- Tech Dividends Rising: More tech giants are adding or increasing dividends to appeal to long-term holders.
Stay tuned to earnings reports and dividend announcements — they’re key indicators of where these stocks are heading.
How to Buy High-Dividend Stocks
It makes sense to open a brokerage account even before you’ve decided what dividend stocks to invest in.
The major brokerages give account holders access to a wealth of educational resources and research to help them explore their options.
- Step 1: Select a brokerage to invest with – GOBankingRates’ 10 Best Stock Brokers rankings can help you choose.
- Step 2: Decide whether to get a self-directed account that lets you select your own investments, a robo-advisor account that builds a portfolio for you or a traditional brokerage account with an advisor to select and execute your trades.
- Step 3: From the brokerage website, click the link or button to open an account and follow the prompts to submit your information.
- Step 4: Fund your account per the application’s instructions, or hold off until you’re ready to invest.
Final Take to GO
The best high-dividend stocks in 2025 offer more than just a paycheck — they bring consistency, protection against inflation and a way to build wealth over time. Whether you’re new to investing or just looking to rebalance, these stocks (and ETFs) deserve a spot on your radar.
Take the next step: compare dividend yields, look into sector trends and start small. Remember, it’s not about chasing the highest yield — it’s about choosing quality companies with staying power.
For more help, check out our beginner investing guide and how to buy ETFs to build a confident foundation.
FAQs
Here are the answers to some of the most frequently asked questions regarding the best high-dividend stocks to invest in ASAP:- What are the best high-dividend stocks for beginners?Â
- Johnson & Johnson (JNJ), PepsiCo (PEP), Coca-Cola (KO) and Verizon (VZ) are good high-dividend stocks for beginners. Â
- Should I invest in high-dividend stocks in 2025?Â
- It depends on your goals. If you'd like long-term stability, steady income and minimal volatility, a high-dividend stock will be a good investment for 2025. Â
- Which stocks pay dividends?Â
- AT&T (T), Verizon (VZ), Chevron (CVX) and Pfizer (PFE) are stocks that pay dividends. Â
- Are high-dividend stocks good for long-term growth?Â
- Yes, you can reinvest dividends and they can compound over time. Also, high-dividend stocks favor less volatility and encourage stability.
Information is accurate as of May 20, 2025.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy
- Forbes. 2020. "How To Score Big With Dividend Stocks In 2021."
- Forbes Advisor. 2021. "Investing Basics: What Are Dividends?"
- Forbes Advisor. 2021. "How To Calculate Dividend Yield."
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- Realty Income. 2023. "122nd Common Stock Monthly Dividend Increase Declared by Realty Income"
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