New Investment Opportunities in US Stock Dividends: In-Depth Analysis of Five High-Yield Stocks

Background of the High Dividend Environment in U.S. Stocks

The U.S. stock market performed strongly in 2024, but as gains expanded, overall dividend yields have actually contracted. The dividend yield of the S&P 500 is currently only 1.2%, approaching a 20-year low. However, the market is not without opportunities—there are still a number of companies with annual dividend yields exceeding 5%, providing investors seeking stable cash flows with ample options.

According to the latest data, undervalued high-dividend stocks still exist, especially in traditional industries such as energy, real estate, and telecommunications. These companies often have strong cash generation capabilities and mature business models.

Five U.S. Dividend Leaders to Watch in 2025

First Tier: Enbridge (ENB)

As a leader in energy infrastructure, Enbridge holds a significant position in liquid pipeline transportation, natural gas transmission, and storage. The company’s pipeline network in Canada and the U.S. is responsible for transporting crude oil and liquids, with extensive coverage.

Most notably, it has a 22-year streak of consecutive dividend increases. The current dividend yield is 6.03%, with a five-year stock price increase of 9.85%. Royal Bank of Canada recently raised its target price from $59 to $63, maintaining an “outperform” rating. The company has a market cap of $97.529 billion and a P/E ratio of 21.95.

Second Tier: Verizon (VZ)

As a leading global telecom service provider and a Dow Jones Industrial Average component, Verizon’s main business includes voice calls, fixed broadband, and wireless communications. Its subsidiary, Verizon Wireless, monopolizes the largest wireless carrier position in the U.S.

In Q4 2024, revenue was $35.7 billion, up 1.7% year-over-year, exceeding market expectations. The current dividend yield is 6.99%, the highest among the five stocks. Although it has declined 35.01% over the past five years, it is the largest in market cap at $166.969 billion, reflecting its industry leadership.

Third Tier: Realty Income (O)

A representative in the REIT sector, focusing on the acquisition and operation of single-tenant commercial properties. It owns over 12,237 properties with approximately 236.8 million square feet of leasable space, of which 12,111 are actively leased.

Q3 2024 revenue was $3.931 billion, up 30.91% year-over-year, with net income of $666 million. The current dividend yield is 5.80%. Stifel analysts maintain a buy rating with a target price of $66.50. Market cap is $47.253 billion, with a P/E ratio of 51.45.

Fourth Tier: Vici Properties (VICI)

A specialized operator of casino, hotel, and entertainment property assets, with 93 experiential assets including 54 casino properties in the U.S. and Canada. Notable properties include Caesars Palace, MGM Grand, and The Venetian.

In Q3, revenue was $2.873 billion, up 7.2% year-over-year, with net income of $2.097 billion, and EPS of $1.98. The dividend yield is 5.89%. Barclays rates it as a buy with a target price of $36. Market cap is $30.877 billion, with a P/E ratio of only 10.86, making it relatively attractive.

Fifth Tier: Brookfield Renewable (BEPC)

One of the largest pure-play renewable energy investment portfolios globally, with an installed capacity of about 6,707 MW. The portfolio includes 204 hydroelectric facilities, 72 river system hydro stations, 28 wind farms, and 2 natural gas power plants, across Canada, the U.S., and Brazil among 13 electricity markets.

In Q3 2024, revenue was $4.444 billion, up 19.62% year-over-year. The dividend yield is 5.60%. JP Morgan maintains an overweight rating with a target price of $28. Although it has declined 16.23% over the past five years, the long-term potential in clean energy remains significant.

Core Investment Logic of High-Dividend U.S. Stocks

Stable Cash Returns

These companies are typically mature, with stable profitability and ample cash flow. Their long dividend history demonstrates sustainability, providing investors with predictable cash income.

Mature Business Models

Established companies often have proven business models. They hold solid positions in their supply chains, possess strong risk resistance, and are less susceptible to short-term market volatility.

Capital Appreciation Potential

Beyond dividend income, these companies are steadily growing. Long-term stock price appreciation offers additional capital gains, enabling multi-dimensional growth.

Portfolio Balancing Tool

In portfolios overly concentrated in high-growth tech stocks, adding high-dividend stocks can significantly reduce overall risk. The stability of traditional industries can effectively hedge against the volatility of growth stocks.

Four Steps to Precise Stock Selection

Step 1: Industry Screening and Company Research

Select leading companies within 1-3 traditional industries of interest. Deeply analyze their financial statements, profitability, and growth prospects. Focus on revenue stability, cash flow sufficiency, and sustainable development capacity.

Step 2: Stability of Earnings Evaluation

Compare companies’ earnings over past 5-10 economic cycles to identify those with relatively stable profits. Such companies tend to have more reliable dividend policies and lower risk of dividend suspension.

Step 3: Dividend History and Policy Analysis

Review recent dividend payment records. Prioritize companies that have maintained or gradually increased dividends in recent years. Understand their dividend policy core to exclude those with infrequent or unreasonable payout ratios.

Step 4: Yield Benchmarking and Expert Opinions

Calculate dividend yields for each candidate. If yields are low, analyze reasons. Finally, compare analyst ratings and listen to professional institutions’ latest views to avoid mistiming and incurring higher costs.

Outlook for U.S. Stock Dividends in 2025

Entering 2025, U.S. stock dividends are expected to enter a new growth cycle. Goldman Sachs forecasts that earnings per share of the S&P 500 will grow 11%, driving a 7% increase in dividends. Bank of America’s outlook is even more optimistic, expecting a 12% rise in dividends.

S&P Dow Jones Indices analyst Howard Silverblatt predicts an average dividend increase of around 8% in 2025. This suggests total annual dividends could reach a new high of approximately $685 billion, up from $630 billion in 2024.

There is usually about a three-quarter lag between earnings growth and dividend increases. Since earnings of S&P 500 components have begun accelerating in 2024, dividend growth in 2025 is well anticipated.

Against the backdrop of slowing economic growth and rising recession expectations, high-dividend U.S. stocks will remain a relatively safe investment choice. These companies, with their risk resistance, can provide more safety margins amid market volatility.

Investment Risk Warning

While high-dividend stocks are attractive, they are not without risks. Some companies with high debt levels, unstable earnings, or questionable business models may be forced to cut or suspend dividends. Before investing, thorough fundamental research and risk assessment are essential to ensure the companies have genuine dividend support. It is also important to allocate according to your risk tolerance and avoid overemphasizing high yields at the expense of fundamentals.