Recently studying U.S. stocks, I found an interesting investment direction—high dividend yield stocks. Last year, the U.S. stock market rose quite a bit, but the dividend yield actually decreased, with the S&P 500's dividend yield at only 1.2%, near a 20-year low. However, this also means there are opportunities; many high dividend stocks are still undervalued, with dividend yields exceeding 5%.



I’ve selected a few good high dividend stocks to share. Enbridge (ENB) has a dividend yield of over 6%, and has maintained dividend growth for 22 consecutive years, which is quite rare. Verizon (VZ), although with a 7% dividend yield, has seen its stock price drop 35% over the past five years, possibly an opportunity for a mispriced stock. There’s also Realty Income (O), a real estate investment trust, with a 5.8% dividend yield, holding over 12k properties, providing very stable income. Additionally, Brookfield Renewable (BEPC) and Vici Properties (VICI) both have dividend yields above 5%, each with their own characteristics.

How to select high dividend yield stocks? My experience is to first find a few industry leaders in the sectors you’re interested in, then look at whether these companies have stable profits over the past 5-10 years. The most important thing is to check their dividend history—choose companies that have consistently paid or increased dividends year after year. Then, calculate the dividend yield; if it’s too low, consider the reasons. Finally, listen to analysts’ opinions—don’t rush into buying.

From an investment outlook, U.S. stock earnings growth is expected to accelerate in 2025, which usually will boost dividend growth after about three quarters. Wall Street investment banks are quite optimistic; Goldman Sachs forecasts a 7% dividend increase this year, and Bank of America even expects a 12% rise. So, if you want stable cash flow returns, high dividend stocks are indeed a good choice. But also be aware of risks—some companies have high debt or unstable profits, which could lead to dividend adjustments or suspensions. Be sure to do your homework before investing.
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