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.
11. VICI Properties Inc. (NYSE:VICI)
Dividend Yield as of January 9: 6.48%
On January 5, Cantor Fitzgerald cut its price target on VICI Properties Inc. (NYSE:VICI) to $33 from $35 and kept an Overweight rating on the stock. US equity REITs returned 2.9% in 2025, trailing the S&P 500; however, Cantor sees room for improvement in 2026. The firm points to a more supportive macro backdrop and growing momentum around M&A activity. In its view, those factors could start to work in the sector’s favor. The analyst said stable supply and demand, solid balance sheets, and a well-covered dividend continue to support the group. VICI’s dividend yield has room to grow, which Cantor believes adds to the appeal despite the sector’s recent underperformance.
VICI Properties Inc. (NYSE:VICI) went public in early 2018 in one of the largest REIT IPOs at the time. As a REIT, the company is required to distribute most of its taxable income to shareholders. That structure has helped make the company a consistent dividend payer, with annual increases in each of the seven years since its IPO.
The company operates under a triple-net lease model, where tenants are responsible for property taxes, insurance, and maintenance. This setup keeps operating costs predictable and shifts much of the risk to the tenant. VICI’s portfolio remains fully leased, with occupancy at 100%. Most of its long-term leases include rent escalators tied to the Consumer Price Index, which helps protect rental income as inflation moves. Every lease also includes annual base rent increases, whether fixed or variable.
VICI Properties Inc. (NYSE:VICI) focuses on owning, acquiring, and developing experiential real estate, with assets designed around destination-style venues rather than traditional commercial properties.
10. Pfizer Inc. (NYSE:PFE)
Dividend Yield as of January 9: 6.75%
Pfizer Inc. (NYSE:PFE) is among the top dividend stocks to invest in.
On January 7, UBS initiated coverage of Pfizer Inc. (NYSE:PFE) with a Neutral rating and a $25 price target. The firm pointed to lingering uncertainty around Pfizer’s revenue outlook, with roughly $15 billion to $20 billion tied to major drugs expected to lose patient exclusivity over the next three years. UBS said it likes the recent MTSR obesity deal, but added that Pfizer still needs additional moves to reduce the longer-term 2028 LOE risk.
A day later, Pfizer Inc. (NYSE:PFE) announced a new AI-focused partnership. On January 8, the company said it has entered a strategic collaboration with Boltz, PBC, an applied AI research lab, to expand the use of biomolecular AI models and generative workflows across Pfizer’s R&D teams. The aim is to help scientists move faster in designing both small-molecule medicines and biologics.
Boltz is known for its open-source biomolecular foundation models, including Boltz-2 and BoltzGen, which are widely used in the pharmaceutical industry for protein design, structure prediction, and affinity estimation. The company also offers a platform that combines these tools with proprietary generative workflows, user-friendly interfaces, and high-performance computing, making them usable in real-world preclinical discovery work.
Under the collaboration, Boltz will fine-tune its latest models using Pfizer’s large set of historical data. That work is expected to produce exclusive, next-generation models for structure prediction, small-molecule affinity prediction, and biologics design. Pfizer said it will keep full ownership of any compounds that are discovered or developed with support from Boltz’s models and platform.
Pfizer Inc. (NYSE:PFE) is a global, research-driven biopharmaceutical company focused on discovering, developing, manufacturing, and commercializing medicines and vaccines worldwide.
9. Verizon Communications Inc. (NYSE:VZ)
Dividend Yield as of January 9: 6.75%
Verizon Communications Inc. (NYSE:VZ) is one of the best dividend stocks to invest in. On January 7, Scotiabank cut its price target on VZ to $48 from $51 and kept a Sector Perform rating. The firm said the change was part of a broader refresh of its telecom services targets ahead of Q4 earnings.
Scotiabank noted that wireless promotions were especially aggressive during the holiday season. Still, it believes the industry is continuing to grow, with revenue and EBITDA trends staying positive overall.
One thing Verizon does not struggle with is cash generation. Through the first nine months of the year, the company produced $28 billion in cash flow from operations. That easily covered $12.3 billion in capital spending and $8.6 billion in dividends, leaving about $7.2 billion in surplus cash. Verizon has been putting that extra cash to work by reinforcing its balance sheet, which is already one of the company’s strengths.
Verizon also expects free cash flow to improve further in 2026. A key part of that outlook is the company’s planned $20 billion all-cash acquisition of Frontier Communications. The deal would expand Verizon’s reach in broadband and make it easier to bundle mobile and home internet services, a combination that can be sticky once customers adopt it.
That cash flow profile matters for dividend investors. With spending covered and cash still left over, Verizon remains in a strong position to continue increasing its dividend over time.
Verizon Communications Inc. (NYSE:VZ) is a holding company that operates through its subsidiaries, offering communications, technology, information, and streaming products and services to consumers, businesses, and government customers.
8. Enterprise Products Partners L.P. (NYSE:EPD)
Dividend Yield as of January 9: 6.87%
Enterprise Products Partners L.P. (NYSE:EPD) is among the top dividend stocks with high yields.
On January 5, Raymond James downgraded Enterprise Products Partners L.P. (NYSE:EPD) to Outperform from Strong Buy, while keeping its price target unchanged at $36. The move was part of a broader reset in the midstream supplier group heading into 2026. The firm said midstream is entering 2026 with momentum. But after what it described as “constructive” share performance in 2025, expectations are higher now. In Raymond James’ view, “the real work now shifts to execution.” Investors are paying closer attention to which companies can turn supportive macro conditions into actual cash flow, and not just strong narratives.
Enterprise Products Partners L.P. (NYSE:EPD) stands out on the cash flow side. The partnership generates steady, predictable cash that supports a large distribution. Over the past 12 months, distributable cash flow covered the distribution by 1.7x. That is the kind of cushion income-focused investors look for, since it gives the company room to absorb volatility before the payout would come under pressure.
The balance sheet adds another layer of stability. The company has an investment-grade credit profile, which gives it flexibility if markets tighten or operations face a short-term bump. It can rely on financial strength rather than being forced into tough choices like cutting its distribution. That conservative approach has shown up in the track record. Enterprise has increased its distribution for 27 straight years. That run includes difficult periods for energy markets, including two major sector downturns, the Great Recession, and the COVID-19 shock.
Enterprise Products Partners L.P. (NYSE:EPD) is a midstream energy services provider, handling the transportation, processing, storage, and related services for natural gas, NGLs, crude oil, refined products, and petrochemicals across the value chain.
7. Americold Realty Trust, Inc. (NYSE:COLD)
Dividend Yield as of January 9: 6.93%
Americold Realty Trust, Inc. (NYSE:COLD) is among the top high-yield dividend stocks to invest in.
Scotiabank analyst Greg McGinniss raised the firm’s price target on COLD on January 9 to $14 from $12. The firm maintained a Sector Perform rating on the stock. The update came as part of the broader coverage of the US Cold Storage segment and noted that investors should “brace for another tough year,” with challenges regarding pricing and occupancy dynamics, the analyst highlighted in a research note.
On January 8, UBS raised its price target on Americold Realty Trust, Inc. (NYSE:COLD) to $13 from $12 and kept a Neutral rating on the shares.UBS said 2026 could be a key turning point for REITs overall. The firm is forecasting total returns of 9% to 11%, supported by a more favorable macro setup, attractive valuations, easing supply pressures, and a steadier political backdrop. It expects the year to split into two different phases, with a more defensive tone in the first half of 2026 and stronger catalysts showing up later in the year. UBS said that the setup favors Healthcare, Shopping Centers, and Coastal Apartments in particular.
Americold Realty Trust, Inc. (NYSE:COLD) has built its business around temperature-controlled warehousing, and it has grown quickly by buying assets. Over time, that acquisition strategy has helped the company assemble what is described as the world’s second-largest portfolio of cold-storage warehouses.
With a broad network already in place, Americold has more options to keep expanding, whether that means acquiring additional facilities or developing new warehouses to support large food and retail customers. Americold Realty Trust, Inc. (NYSE:COLD) is one of only two publicly traded REITs focused specifically on cold-storage properties. As of late 2025, it owned and operated more than 230 temperature-controlled warehouses globally, representing about 1.5 billion cubic feet of storage. The company generates revenue by leasing space to food manufacturers, distributors, and retailers. It also earns fees by managing facilities owned by third parties and by providing transportation-related services.
6. National Storage Affiliates Trust (NYSE:NSA)
Dividend Yield as of January 9: 7.27%
National Storage Affiliates Trust (NYSE:NSA) is among the best dividend stocks to invest in.
On January 8, UBS lowered its price target on National Storage Affiliates Trust (NYSE:NSA) to $29 from $30 and kept a Neutral rating on the stock. UBS said the adjustment was not really about one company-specific issue. It came as part of the firm’s broader view on REITs heading into 2026.UBS expects 2026 to be an important year for the REIT space. The firm forecasts total returns of 9%–11%, supported by improving macro conditions, more attractive valuations, easing supply pressures, and a steadier political backdrop. It also expects the year to unfold in two different phases, with investors leaning more defensive in the first half of 2026 and stronger catalysts showing up in the second half. In that environment, UBS said it prefers Healthcare REITs, Shopping Centers, and Coastal Apartments.
National Storage Affiliates Trust (NYSE:NSA) has also been active on the growth front. Earlier in November, the company announced a new joint venture with an affiliate of Investment Real Estate Management (IRE). IRE is one of NSA’s former participating regional operators and manages self-storage properties under the “Moove In” brand.
The joint venture is expected to have around $350 million in buying power, funded through partner equity contributions and debt raised at the joint venture level. NSA plans to provide 75% of the equity capital, up to $105 million, in exchange for preferred equity. That investment comes with a 10% preferred return per year, plus the potential for additional upside, which NSA expects to earn when the joint venture exits its investments in future years.
The company expects the joint venture to put the capital to work over the next 24 months. The focus will be on value-add self-storage opportunities in markets where population and demand trends look favorable. Any properties acquired through the venture will be managed by IRE under the Moove In brand, which gives the partnership an operating platform that is already in place.
National Storage Affiliates Trust (NYSE:NSA) is a self-storage REIT based in Greenwood Village, Colorado. The company focuses on owning, operating, and acquiring storage properties, mostly located in large US metro areas within the top 100 metropolitan statistical areas.
5. Altria Group, Inc. (NYSE:MO)
Dividend Yield as of January 9: 7.37%
Altria Group, Inc. (NYSE:MO) is among the best dividend stocks to invest in.
On January 9, UBS upgraded Altria Group, Inc. (NYSE:MO) to Buy from Neutral and raised its price target to $63 from $61. UBS said the key reason is that the worst of Altria’s cigarette volume decline may be starting to fade. The firm expects conditions to look better in 2026, supported by healthier industry volumes and more price investment that could help Altria hold its share more steadily. UBS also pointed to improving earnings visibility, which made the risk-reward look more attractive.
Cigarette volumes have been sliding for years, and the recent numbers show how steep that trend has been. In Q3 2025, Altria Group, Inc. (NYSE:MO)’s cigarette volumes fell 8.2% year over year. Over the first nine months of 2025, volumes were down 10.6%. That is a tough backdrop for any consumer product business, especially one built on scale.
Still, Altria has managed to keep its financial performance relatively steady, mainly by leaning on pricing. The company has consistently raised prices to offset weaker volumes, and the category tends to allow that more than most people expect. In practice, many tobacco users do not quit just because prices go up. Some will trade down to cheaper options, but many stick with the same brand and absorb the increase. That pricing power has been one of the reasons Altria has remained resilient despite declining consumption.
At the corporate level, management’s larger objective is to keep the business durable over the long term. Capital allocation plays a big role in that, and the company remains committed to returning a meaningful share of profits to shareholders. The company targets a payout ratio of roughly 80% of adjusted earnings per share, and it has increased its dividend for 56 straight years, one of the longest records in the market.
Altria Group, Inc. (NYSE:MO) is a US-focused tobacco company operating as a holding company, with business lines centered on the manufacture and sale of cigarettes and other products.
4. Kinetik Holdings Inc. (NYSE:KNTK)
Dividend Yield as of January 9: 8.50%
Kinetik Holdings Inc. (NYSE:KNTK) is among the best dividend stocks to invest in.
On January 5, Raymond James upgraded Kinetik Holdings Inc. (NYSE:KNTK) to Outperform from Market Perform and set a $46 price target. The call was part of a broader refresh of ratings across the midstream supplier group heading into 2026. Raymond James said midstream is entering 2026 with momentum, but after what it described as “constructive” share performance in 2025, expectations are now higher. In the firm’s view, “the real work now shifts to execution.” Investors are paying less attention to broad industry tailwinds and more to which companies can actually convert that backdrop into real, measurable cash flow.
Kinetik Holdings Inc. (NYSE:KNTK)’s earnings help explain the upgrade. In third-quarter earnings reported on November 5, the company posted total operating revenue of $463.9 million, up 17% from the same period last year. Product revenue also moved higher, rising to $357.6 million from $290.4 million in the prior-year quarter.
The quarter also included an important operational milestone. Kinetik said its Kings Landing project officially entered full commercial service, adding processing capacity in New Mexico. CEO Jamie Welch noted that Kings Landing has been consistently running above 100 million cubic feet per day, which lines up with the company’s internal expectations.
On the cash flow side, Kinetik appears to be in solid shape. The company reported distributable cash flow of $158 million for the quarter, along with free cash flow of $50.9 million. That cash generation supports the dividend, with the dividend coverage ratio coming in at 1.3x, giving the company some breathing room even if conditions soften.
Kinetik Holdings Inc. (NYSE:KNTK) is an American midstream energy company focused on the Permian Basin, with operations tied to gathering, processing, and related infrastructure supporting production growth in the region.
3. Hess Midstream LP (NYSE:HESM)
Dividend Yield as of January 9: 8.55%
Hess Midstream LP (NYSE:HESM) is among the best dividend stocks with high yields.
Raymond James downgraded Hess Midstream LP (NYSE:HESM) to Market Perform from Outperform and did not assign a price target. The change came as the firm reshuffled ratings across the midstream supplier group ahead of 2026. Raymond James said the broader midstream backdrop still looks supportive, but investor expectations have shifted. The focus is now less about riding industry tailwinds and more about execution, specifically which companies can turn favorable conditions into dependable, repeatable cash flow.
Hess Midstream LP (NYSE:HESM)’s latest quarter showed a fairly steady operating picture. In Q3 2025, the company reported net income of $176 million, slightly below the $180 million posted in Q2. Adjusted EBITDA moved higher, rising to $321 million from $316 million in the prior quarter.
Margins remained a key strength. The company’s gross adjusted EBITDA margin held near 80%, which is well above its 75% target. That kind of margin performance points to strong operating leverage and cost discipline, even as results fluctuate modestly quarter to quarter.
On the distribution side, Hess Midstream continued delivering on its payout framework. The third-quarter distribution included the targeted 5% annual growth per Class A share. It also included an additional lift tied to the company’s $100 million share repurchase, which can support per-share metrics over time.
Hess Midstream LP (NYSE:HESM) provides midstream services such as gathering, processing, storage, and transportation for crude oil, natural gas, and natural gas liquids.
2. The Western Union Company (NYSE:WU)
Dividend Yield as of January 9: 9.70%
The Western Union Company (NYSE:WU) is one of the top high-yielding dividend stocks to invest in.
On January 2, Keefe Bruyette raised its price target on The Western Union Company (NYSE:WU)to $10 from $9 and kept a Market Perform rating on the stock. The change came as the firm updated price targets across the consumer finance and payments space, rather than signaling a major company-specific shift.
The Western Union Company (NYSE:WU), meanwhile, has been trying to reshape how investors think about the business. The company has been pushing hard on its digital transformation, aiming to make its platform more modern and easier to use for customers who prefer online and mobile transfers. It has also been expanding its travel money business, building out another revenue stream beyond traditional remittances.
One of the more interesting parts of the strategy is Western Union’s move into stablecoins. The company is exploring how stablecoin technology could fit into its remittance model, especially as cross-border payments keep evolving. Earlier in October, the company announced plans to launch its own US Dollar Payment Token (USDPT), along with a Digital Asset Network meant to connect the digital asset world with traditional fiat currencies.
The company said USDPT would be built on Solana and issued by Anchorage Digital Bank. The Western Union Company (NYSE:WU)’s goal is to broaden the ways money can move across its customer, agent, and partner network, while also improving internal treasury flexibility. The company expects USDPT to become available in the first half of 2026. The token is planned to be accessible through partner exchanges, which should help with distribution and usability from day one.
The Western Union Company (NYSE:WU) is a global provider of cross-border and cross-currency money movement, payments, and digital financial services, serving consumers, businesses, financial institutions, and government clients.
1. LyondellBasell Industries N.V. (NYSE:LYB)
Dividend Yield as of January 9: 11.25%
LyondellBasell Industries N.V. (NYSE:LYB) is one of the best dividend stocks to invest in.
On January 8, BofA analyst Matthew DeYoe lowered LyondellBasell Industries N.V. (NYSE:LYB) price target to $46 from $52 and kept a Neutral rating. BofA said the move came as it refreshed price targets across the Chemicals names it covers, rather than because of one specific issue at LYB.
BofA’s broader stance on the sector remains cautious. The firm expects commodity chemicals to deal with another year of oversupply. Specialty chemicals are still working through an uneven demand backdrop, and the agriculture setup looks mixed. That said, the firm does see a few potential positives on the horizon. It pointed to possible catalysts such as PMI indicators improving, interest rate cuts, and capacity rationalization in China. The firm believes that those are encouraging signals, but it’s too early to count on them.
LyondellBasell Industries N.V. (NYSE:LYB) itself has been focused on controlling what it can. In Q3 2025, the company highlighted better cash flow and meaningful fixed cost reductions, even while global end markets stayed difficult. Management also stressed portfolio optimization, including a pending sale of European assets and the decision to delay certain capital projects to preserve cash.
LYB also recorded a $1.2 billion impairment charge tied to weaker demand in specific regions and segments, which weighed on reported results and affected the quarter’s tax picture. On capital allocation, management signaled a more conservative approach going forward. The company reduced its 2026 CapEx guidance to $1.2 billion, while still emphasizing shareholder returns and maintaining an investment-grade balance sheet.
LyondellBasell Industries N.V. (NYSE:LYB) is a major global chemical producer, manufacturing plastics, chemicals, and refined fuels. The company also licenses petrochemical technologies and has been investing in circular economy initiatives, including recycling-based solutions.
While we acknowledge the potential of LYB to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than LYB and that has 100x upside potential, check out our report about this cheapest AI stock.
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