In this article, we will take a look at some of the best dividend stocks to invest in.
Dividend yield has always been a point of debate in the market. Many investors are naturally drawn to high yields, seeing them as an easy way to generate income. Analysts, on the other hand, often treat unusually high yields with caution, since they can sometimes signal stress. In many cases, the yield looks attractive only because the stock price has fallen, which is why “dividend trap” is a common concern.
Dividend growers do not always offer the most eye-catching yields upfront. The income may appear modest compared to higher-yielding stocks. Still, dividend growth investing is typically more focused on the future than the present. When a company raises its dividend consistently, long-term investors can benefit from a rising yield on cost over time. The longer the holding period, the more meaningful that compounding effect can become.
Regular dividend increases can also support total returns in another way. Companies that demonstrate a steady ability to grow their payout often attract stronger investor confidence. That stability can contribute to share price appreciation alongside the income stream.
Newton Investment Management (NIM) has also pointed to the historical strength of high-dividend stocks in certain environments. According to NIM’s research, high-dividend equities outperformed the broader market during periods of high inflation between 1940 and 2021. The firm also noted that higher dividend yield stocks have tended to generate stronger future returns.
These conclusions were based on US market data from July 1928 through June 2019. The research found that portfolios made up of high-dividend yield stocks outperformed portfolios consisting of low-yield or zero-yield stocks on a value-weighted basis. Specifically, high-yield portfolios beat low-yield portfolios by 199 basis points and outperformed zero-yield portfolios by 330 basis points. Given this, we will take a look at some of the best dividend stocks with over 6% yield.
Our Methodology:
For this list, we screened for companies with market caps of at least $2 billion and identified strong dividend payers. From that group, we picked stocks with dividend yields above 6%, as of January 9. Though very high yields can pose risks, we selected companies from the list known for consistently paying dependable dividends. The stocks were then ranked according to their dividend yields.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
13. Amcor plc (NYSE:AMCR)
Dividend Yield as of January 9: 6.01%
Amcor plc (NYSE:AMCR) is among the best dividend stocks with yields above 6%. On January 7, Baird analyst Ghansham Panjabi upgraded AMCR to Outperform from Neutral and kept his price target unchanged at $10. In a research note, Panjabi said Amcor is well-positioned to deliver “competitive” earnings growth through fiscal 2027. He expects that growth to be driven by synergies from Berry Global and ongoing debt deleveraging. Baird believes Amcor could post at least double-digit earnings growth through fiscal 2027.
On December 11, Amcor plc (NYSE:AMCR) announced it will move forward with the 1-for-5 reverse stock split that shareholders approved at the annual general meeting held on November 6, 2025. The company expects to file an amendment to its memorandum of association to complete the reverse split after the close of trading on January 14, 2026. AMCR’s ordinary shares are set to begin trading on a split-adjusted basis on January 15, 2026.
Amcor also said its CHESS Depositary Interests (“CDIs”) will be consolidated on a 1-for-5 basis as well. After the reverse split, one CDI will still represent an interest in one Amcor ordinary share.
Amcor operates in packaging solutions for consumer and healthcare products. The company develops sustainable packaging in both flexible and rigid formats, using multiple types of materials.
12. United Parcel Service, Inc. (NYSE:UPS)
Dividend Yield as of January 9: 6.07%
United Parcel Service, Inc. (NYSE:UPS) is one of the best dividend stocks with high yields.
On January 9, Bernstein analyst David Vernon raised his price target on United Parcel Service, Inc. (NYSE:UPS) to $125 from $122 and kept an Outperform rating. Vernon said concerns around the dividend look overblown, especially as UPS works to improve margins. He also expects future growth to lean more toward higher-return markets.
UPS shares fell nearly 20% in 2025, and that drop has pushed the dividend yield to an unusually high 6%. It has also lifted the dividend payout ratio to roughly 98%. On paper, that leaves little room if profits do not improve, which is why dividend risk has become such a big talking point.
Still, United Parcel Service, Inc. (NYSE:UPS) has been clear about where it stands. In a November 6 press release announcing the latest dividend, the company said:
“Commitment to the dividend is one of UPS’s core principles and a hallmark of the company’s financial strength. UPS has either maintained or increased its dividend each year since going public in 1999.”
The next step is execution. UPS is resizing and reshaping its business, including moving away from lower-margin Amazon volume. If that transition holds, the payout ratio should begin to ease as earnings rebuild. Analysts currently expect earnings per share to rise about 4% in 2026 and 11% in 2027, assuming the company follows through on its plan.
United Parcel Service, Inc. (NYSE: UPS) provides integrated logistics and delivery services to customers across more than 200 countries and territories.
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