Recently, I've been looking into high-dividend stocks in the U.S. stock market and found that this area is really worth paying attention to. Last year, the U.S. stock market rose quite a bit, but the dividend yields actually decreased, with the S&P 500 now around 1.2%, near a 20-year low. However, this presents an opportunity for us because there are still some undervalued dividend kings in the market, with annualized returns exceeding 5%.

I analyzed some data and compiled a few representative high-yield stocks. Enbridge, an energy infrastructure company, is particularly interesting; it has increased its dividends for 22 consecutive years, with a current yield of about 6%. Another is Realty Income, a real estate investment trust that owns over 12,000 commercial properties, which looks very solid just from the stability of its cash flow. Verizon, as a telecom giant, has seen its stock price decline significantly over the past few years, but its dividend-paying ability remains strong, with a yield close to 7%.

Why are dividend kings in the U.S. stock market worth paying attention to? Basically, there are a few points. First, these companies are generally industry leaders with stable profitability, ample cash flow, and transparent dividend policies. Second, compared to high-growth stocks, high-yield stocks are more risk-resistant and can provide stable cash returns during economic uncertainties. Third, these companies are still growing themselves, and their stock prices also have room for appreciation, allowing you to enjoy both dividends and growth.

How to select such stocks? My approach is to first pick 1-3 industry leaders that I’m interested in, and then thoroughly understand their financial status and growth prospects. Next, check whether these companies’ earnings have been relatively stable over the past 5-10 economic cycles. Then, review their dividend records over the past few years, prioritizing those with stable and increasing dividends. Finally, compare the dividend yields to see if they are reasonable.

From a macro perspective, the dividend environment in the U.S. stock market in 2025 looks quite good. Goldman Sachs predicts that this year, the earnings per share of S&P 500 components will grow by 11%, which will drive a 7% increase in dividends. Bank of America’s forecast is even more optimistic, expecting dividends to grow by 12%. If this outlook proves correct, high-yield U.S. stocks are indeed a good choice. Especially in the context of slowing economic growth and rising recession expectations, the defensive qualities of these stocks become even more important.

Of course, investing in high-yield stocks is not without risks. Some companies may have high payout ratios but could be under heavy debt pressure or have unstable earnings, making their dividends more susceptible to cuts. Therefore, it’s essential to do thorough research, fully assess the company’s fundamentals and your own risk tolerance, and not just jump in based on yield alone.