In this article, we take a look at 14 cheap high dividend stocks to buy.
A new wave is emerging among American Gen Z investors, with many trading in their nine-to-five roles for dividend investing. These young people are encouraging investment in flashy, dividend-driven plays and channeling the earnings to avoid the corporate grind.
According to Bloomberg, many young investors are now putting their money into exchange-traded funds (ETFs) that advertise very high returns. These returns often come from complex underlying financial vehicles like derivatives, instead of the usual dividends paid by company stocks. What makes this attractive is the idea of getting a regular income similar to a monthly salary. Some ETFs even pay weekly or monthly, which allows Gen Z investors to cover living expenses without relying on a job.
This trend is also influenced by the current economic crisis. With inflation skyrocketing and housing becoming more expensive, many people under 30 feel that the conventional way of building wealth through work is out of reach. Instead of climbing the corporate ladder, they are using apps and online communities to build dividend-focused portfolios.
In 2024, global dividends grew significantly, rising by 8.5%. Growth was especially strong in the Asia-Pacific region, where government policies encouraged companies to pay dividends twice a year instead of once. In the United States, there was a record number of new and reinstated dividends, mainly in the technology, media, and telecommunications sector.
As per S&P Global, the new US government could bring uncertainty in areas like tariffs and interest rates during 2025, which might increase market volatility. Since interest rates are expected to stay high at least in the first half of 2025, companies will need to focus on dividends and balanced capital return strategies to keep current investors and attract new ones.
With that outlook in mind, let’s take a look at the best high dividend stocks to buy right now.
Image by Steve Buissinne from Pixabay
Our Methodology
For this article, we used a stock screener to filter out dividend stocks with a low P/E ratio and dividend yields over 3% as of September 10. These stocks also have strong fundamentals and a solid dividend history. These 14 stocks have also drawn recent coverage from Wall Street analysts and mainstream media. The stocks are ranked according to the number of hedge funds having stakes in them, as per Insider Monkey’s database of Q2 2025.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
14. Canadian Imperial Bank of Commerce (NYSE:CM)
Dividend Yield as of September 10: 3.63%
P/E Ratio: 12.88
Number of Hedge Fund Holders: 20
Canadian Imperial Bank of Commerce (NYSE:CM) is one of the best dividend stocks to buy. On August 29, BMO Capital lifted its price target on CM to C$107 from C$112 and assigned an Outperform rating to the stock. The bank’s shares have experienced strong upward movement, posting a roughly 30% increase in six months.
BMO raised its price target after CM reported better-than-expected earnings, with cash operating earnings per share of $2.16, beating BMO’s forecast of $1.99 by 9% and the Wall Street estimate of $2.01 by 8%.
BMO added that Capital Markets also helped outperform earnings expectations, with trading revenue coming in at $567 million, higher than expected.
The bank had a return on equity of 14.2% on a 13.4% CET1 ratio after buying back about 5.5 million shares in the second quarter, and it announced a 20 million normal course issuer bid (NCIB), or around 2.2% of its shares, pending regulatory approval.
Canadian Imperial Bank of Commerce (NYSE:CM) is a financial institution that offers a wide range of services, including banking, loans, investments, insurance, and wealth management.
13. The Toronto-Dominion Bank (NYSE:TD)
Dividend Yield as of September 10: 4.04%
P/E Ratio: 8.86
Number of Hedge Fund Holders: 23
The Toronto-Dominion Bank (NYSE:TD) is one of the best dividend stocks to buy. On August 1, TD reported that it has published a base prospectus for its $40 billion Global Medium Term Note Programme, which has been authorized by the Financial Conduct Authority.
The bank announced that the prospectus dated August 1 has been filed with the National Storage Mechanism and is available on the Financial Conduct Authority’s data portal.
Notes issued through this program are not covered by the US Securities Act of 1933 and can only be sold or offered in the US or to US persons if some exemptions are met.
The announcement points to several documents tied to the prospectus, including the Annual Information Form dated December 4, 2024, the Management’s Discussion and Analysis for the year ending October 31, 2024, the audited 2023-2024 financial statements, and the Second Quarter 2025 shareholder report.
The prospectus also includes references to the “Terms and Conditions of the Notes” sections from the bank’s earlier base prospectuses dated June 30, 2021, June 30, 2022, June 30, 2023, and July 31, 2024.
The prospectus has information meant only for residents of certain countries, and the bank warns that people outside those countries, or not included in the offer, should not rely on it.
The Toronto-Dominion Bank (NYSE:TD) is a financial institution that serves clients in Canada and the United States, among other countries. It operates through four main segments – Canadian Personal and Commercial Banking, US Retail, Wealth Management and Insurance, and Wholesale Banking.
12. TotalEnergies SE (NYSE:TTE)
Dividend Yield as of September 10: 6.17%
P/E Ratio: 11.37
Number of Hedge Fund Holders: 23
TotalEnergies SE (NYSE:TTE) is one of the best dividend stocks to buy. On September 1, the company disclosed in a press release that it has received the Nzombo exploration permit in the Republic of the Congo.
Located 100 km off Pointe-Noire and close to TotalEnergies’ Moho production sites, the 1,000 km² permit will be 50% operated by TotalEnergies, while QatarEnergy and SNPC hold 35% and 15%, respectively. Drilling for one exploration well is set to start before the end of 2025, according to the work program.
According to Kevin McLachlan, Senior VP of Exploration at TotalEnergies, the award demonstrates the company’s strategy to grow its Exploration portfolio with projects that can benefit from existing facilities.
With the Nzombo permit, the company continues its long-term collaboration with the Republic of the Congo, where it operates existing production facilities.
TotalEnergies SE (NYSE:TTE) is a French global energy company that produces and sells oil, biofuels, natural gas, biogas, low-carbon hydrogen, renewable energy, and electricity.
11. Enterprise Products Partners L.P. (NYSE:EPD)
Dividend Yield as of September 10: 6.78%
P/E Ratio: 12.04
Number of Hedge Fund Holders: 26
Enterprise Products Partners L.P. (NYSE:EPD) is one of the best dividend stocks to buy. On August 15, EPD confirmed that the Seaway crude oil pipeline system was restored after a southeast Houston leak.
A part of the Seaway pipeline was shut down on the night of August 12, which disrupted the flow of crude oil. The pipeline runs from Cushing, Oklahoma, to Freeport, Texas, where it links with the Enterprise Crude Houston (ECHO) terminal.
The firm mentioned that the restart took place gradually, with shipments resuming on the evening of August 14, but they declined to say how much oil the leak had impacted.
The price of WTI crude at MEH in East Houston traded $1.25 above WTI at Cushing on August 14, which was roughly 45 cents higher compared to the price right before the leak.
ECHO acts as a hub for Midland crude in Houston, where it stores oil for customers and connects them to major Texas Gulf Coast refineries. It also connects to marine terminals that move crude to both local and international refineries.
Enterprise, responsible for operating the Seaway pipeline, and Canada’s Enbridge are 50-50 partners in the project.
Enterprise Products Partners L.P. (NYSE:EPD) is a Texas-based provider of midstream services for natural gas, natural gas liquids (NGLs), crude oil, petrochemicals, and refined products.
10. U.S. Bancorp (NYSE:USB)
Dividend Yield as of September 10: 11.68
P/E Ratio: 4.10%
Number of Hedge Fund Holders: 51
U.S. Bancorp (NYSE:USB) is one of the best dividend stocks to buy. On August 26, UBS announced it may serve as stabilizing manager for Arion Bank’s €300 million senior preferred notes.
The notes will mature in 2031, and the stabilization phase is expected to start on August 26, 2025, and finish no later than October 1, 2025.
UBS Europe SE will oversee stabilization and may take actions such as over-allotting or trading securities to support prices, not exceeding 5% of the total nominal amount.
The notes’ offer price and terms have not been set yet. Stabilization is allowed under EU rules (Commission Regulation (EC) No. 2273/2003), but UBS noted it may not take any stabilization action, which can be stopped at any time. The securities are not registered under US law and will not be offered in the US.
9. EOG Resources, Inc. (NYSE:EOG)
Dividend Yield as of September 10: 3.27%
P/E Ratio: 12.11
Number of Hedge Fund Holders: 53
EOG Resources, Inc. (NYSE:EOG) is one of the best dividend stocks to buy. On August 20, Melius Research began coverage of EOG, assigning a Buy rating and setting a price target of $173. The firm noted that the company’s disciplined use of core is a good reason for its favorable outlook.
The firm noted that EOG Resources, Inc. (NYSE:EOG)’s strategy of focusing on internal growth rather than buying other companies makes it stand out in the energy industry.
According to Melius, the company’s use of technology has made it possible to produce oil and gas at lower costs while keeping wells highly productive.
EOG is an independent oil and natural gas company in the United States, with its headquarters in Houston, Texas. It works in several big shale regions and has maintained dividend payouts for 36 years.
8. United Parcel Service, Inc. (NYSE:UPS)
Dividend Yield as of September 10: 7.50%
P/E Ratio: 13.01
Number of Hedge Fund Holders: 53
United Parcel Service, Inc. (NYSE:UPS) is one of the best dividend stocks to buy. On August 28, UBS reiterated a Buy rating on UPS with a price target of $118, pointing to the successful implementation of network changes.
UBS noted that UPS is closing 74 terminals in the first half of 2025 as part of its efforts to handle reduced business from Amazon.
According to UBS, the company is moving forward with its plan to reduce its American workforce by 20,000 and lower expenses by $3.5 billion in 2025.
Although there have been improvements, UPS struggles with challenges such as an unstable tariff environment, weaker domestic parcel volumes, and higher costs due to Surepost insourcing.
UBS highlighted that United Parcel Service, Inc. (NYSE:UPS) values better visibility into domestic margin performance, but warned investors that the effects of these changes could take some time.
7. Target Corporation (NYSE:TGT)
Dividend Yield as of September 10: 4.69%
P/E Ratio: 11.19
Number of Hedge Fund Holders: 54
Target Corporation (NYSE:TGT) is one of the best dividend stocks to buy. On August 21, TD Cowen reiterated a Hold rating on TGT and lifted the price target from $100 to $110.
Target showed better results in Q2, with comparable sales down 1.9% versus a 3.8% drop in Q1, the firm noted. The $105.6 billion company repeated its full-year guidance, expecting low single-digit sales declines. It also offers a 4.62% dividend yield and has raised dividends for 54 straight years.
The company is undergoing challenges, according to TD Cowen, with margin pressure and falling sales in core categories (home goods down 6% and apparel down 4%), but Target had gains in denim, performance wear, and women’s products.
Target’s new CEO is prioritizing urgent change, the investment firm observed, and could take more significant measures on owned brands, exclusive products, and AI initiatives.
TD Cowen also stressed upon growing competition from cheaper alternatives like off-price retailers, SHEIN, and Temu, noting that it has become harder for Target to control its style and design in today’s retail market.
6. Altria Group, Inc. (NYSE:MO)
Dividend Yield as of September 10: 6.31%
P/E Ratio: 13.00
Number of Hedge Fund Holders: 54
Altria Group, Inc. (NYSE:MO) is one of the best dividend stocks to buy. On July 30, Altria reported Q2 revenue and profit above analysts’ estimates, driven by high demand for its on! nicotine pouches.
To compensate for falling sales of traditional cigarettes and chewing tobacco, the American Marlboro maker has been pushing its smoking alternatives, including nicotine pouches.
Altria’s NJOY vape sales were suspended earlier this year amid a patent fight, yet the on! segment’s growth helped balance out the fall in sales.
In April, the company stated that NJOY would remain off the market this year, recording a significant loss for its vape division. Sales of unregulated disposable vapes, mostly imported from China, have hurt US vape and tobacco businesses. Altria noted that more seizures of such products influenced the market, yet it brought limited advantage to the company itself.
Altria’s Q2 revenue went up by 1.2%, even though analysts expected it to fall by 1.8%. Profits also came in stronger at $1.44 per share, compared to the $1.39 forecast, according to LSEG data. Sales of its on! nicotine pouches jumped 26.5%, while shipments in its smokeable tobacco division dropped 10.2%.
The company now expects full-year adjusted earnings of $5.35 to $5.45 per share, slightly higher than its earlier estimate of $5.30 to $5.45. Altria also mentioned tariffs as a bigger factor this year.
Altria CFO Sal Mancuso noted that tariffs have raised packaging costs, though the effect is limited. He said the company’s supply chain is flexible enough to handle them, even for NJOY’s future sales in the United States.
5. Truist Financial Corporation (NYSE:TFC)
Dividend Yield as of September 10: 4.44%
P/E Ratio: 12.69
Number of Hedge Fund Holders: 55
Truist Financial Corporation (NYSE:TFC) is one of the best dividend stocks to buy. On August 21, Wells Fargo downgraded Truist Financial from Overweight to Equal Weight, but left the price target at $47.
The downgrade follows Truist’s decision to initiate a five-year strategy focused on growth. Even though the plan does not set new financial metrics, it adheres to the goals of positive operating leverage and mid-teen ROTCE. The company has also paid dividends for 53 consecutive years, currently yielding 4.69%.
Truist is focusing on expansion by constructing new branches, upgrading old ones, and strengthening its digital presence. The bank is also targeting wealthy customers by increasing the number of Premier bankers, while expanding further into Texas, the Southeast, Philadelphia, and Washington, DC.
Wells Fargo highlighted that the Synovus merger could create some chances for Truist. At the same time, the firm criticized Truist’s track record, noting it has fallen short of goals and lagged competitors since its merger.
According to Wells Fargo, the plan leaves expense estimates unchanged, but success will hinge on whether Truist can actually sustain organic growth.
4. Schlumberger Limited (NYSE:SLB)
Dividend Yield as of September 10: 3.09%
P/E Ratio: 12.62
Number of Hedge Fund Holders: 63
Schlumberger Limited (NYSE:SLB) is one of the best dividend stocks to buy. On August 25, SLB announced that OneSubsea, its joint venture, landed a project contract from Equinor covering design, supply, and construction of a 12-well subsea system in Norway’s Fram Sør field.
After a year of early engineering and planning with Equinor, SLB OneSubsea completed the design and investment choice. It will now deliver four subsea structures and 12 fully electric subsea trees, which do away with hydraulic fluid and lessen the need for adjustments on the topside.
Mads Hjelmeland, the CEO of SLB OneSubsea, commented that the Fram Sør project is an industry breakthrough since it introduces the first full-scale all-electric subsea production system.
Fram Sør will be tied back to the Troll C platform in the North Sea, using onshore Norwegian power to ensure low emissions. The contract awaits approval of the development plan.
SLB OneSubsea, a joint venture among Schlumberger Limited (NYSE:SLB), Aker Solutions, and Subsea7, is headquartered in Oslo and Houston and has 10,000 staff worldwide, focusing on subsea operations.
3. ConocoPhillips (NYSE:COP)
Dividend Yield as of September 10: 3.15%
P/E Ratio: 13.27
Number of Hedge Fund Holders: 72
ConocoPhillips (NYSE:COP) is one of the best dividend stocks to buy. On August 21, oil and gas giant ConocoPhillips entered a two-decade agreement to buy 4 MTPA of LNG from Sempra Infrastructure’s Port Arthur LNG Phase 2 project in Texas.
With the 20-year sales and purchase agreement, the company can source LNG on a free-on-board basis, fitting into its broader goal of supplying gas to markets around the globe.
This latest agreement adds to their existing partnership. ConocoPhillips had already signed a 20-year deal in July 2022 for 5 MTPA of LNG from Port Arthur LNG Phase 1 and purchased a 30% equity stake in the project, scheduled to start in 2027.
ConocoPhillips chief Ryan Lance added that the deal fits into the company’s global LNG strategy, helping to secure a strong supply network. He emphasized the firm’s financial health, pointing to its 55 years of continuous dividend payouts.
In Phase 2 of the Port Arthur LNG project in Texas, ConocoPhillips (NYSE:COP) will act only as an LNG buyer, unlike in Phase 1 where it also invested. The final investment decision for Phase 2 is yet to be approved.
2. Comcast Corporation (NASDAQ:CMCSA)
Dividend Yield as of September 10: 3.89%
P/E Ratio: 5.63
Number of Hedge Fund Holders: 82
Comcast Corporation (NASDAQ:CMCSA) is one of the best dividend stocks to buy. On August 22, Comcast announced that it will redeem nearly $2.474 billion of its 3.950% Notes due October 15, 2025, after notifying The Bank of New York Mellon, the trustee.
The company mentioned in the filing that the report does not represent a formal notice of redemption for the notes.
Comcast’s Class A common stock trades on the Nasdaq Stock Market under the CMCSA symbol. The firm also lists a number of debt securities on Nasdaq and the NYSE.
The details are drawn from a press release attached to the company’s Form 8-K filing with the SEC.
Comcast Corporation (NASDAQ:CMCSA) is a global media and technology company offering internet, TV, and wireless services, along with NBCUniversal’s networks, Peacock streaming, and Sky Sports.
1. Pfizer Inc. (NYSE:PFE)
Dividend Yield as of September 10: 6.95%
P/E Ratio: 13.10
Number of Hedge Fund Holders: 83
Pfizer Inc. (NYSE:PFE) is one of the best dividend stocks to buy. On August 12, Pfizer and Astellas Pharma reported that their combination therapy for muscle-invasive bladder cancer had positive outcomes in a Phase 3 trial, specifically for patients who cannot undergo cisplatin-based chemotherapy.
In the EV-303 study, patients were treated with PADCEV and KEYTRUDA around the time of surgery, and their results were compared with those who only had surgery. The trial reached its primary target of event-free survival and, as the company reported, also demonstrated a significant survival benefit.
The study focused on muscle-invasive bladder cancer patients who were either not eligible for cisplatin or decided against it. Surgery alone is typically the standard care for these patients.
Christof Vulsteke, who led the study, noted that the findings from EV-303 represent the first evidence that a systemic therapy given before and after surgery can increase survival compared to the usual surgery-only approach for this population.
The companies reported that the therapy achieved its secondary target, the pathological complete response rate, while the safety findings matched the expected profiles for each medicine.
Around 30% of bladder cancer cases are muscle-invasive. Nearly half of those patients cannot be treated with cisplatin, so their treatment options are limited. According to the companies, they will present detailed findings at an upcoming medical event and consult with global health agencies on regulatory steps.
While we acknowledge the potential of PFE 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 PFE and that has 100x upside potential, check out our report about this cheapest AI stock.
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